Dar es Salaam. The National Bank of Commerce (NBC) had a wonderful year in 2021 as its profit before tax ballooned to a record Sh60 billion.
The amount translates to a 702.39 percent improvement compared to the profit before tax of Sh7.48 billion that the bank recorded in 2020.
The money was largely due to a rise in the interest income stream which rose from Sh132.7 billion in 2020 to Sh158.3 billion in 2021.
Managing director Theobald Sabi (pictured) attributed the growth to the conducive regulatory environment in the country along with a ‘smart’ execution of NBC’s key business focus areas.
“Our focus has been on our customers. We are expanding our customer base across the country, expanding provision of loans, investing on transactional systems for the convenience of our customers and working with our partners through agency banking to provide services near our customers,” he said.
He said with the improvement in profits, the bank’s shareholders can expect better dividends as the lender continues to strive for growth and higher profitability.
In 2020, NBC’s results were affected by the Covid-19 pandemic and some legal obligations.
As a result, financial statements show that though it had a profit before tax of Sh7.48 billion in the year 2020, the actual performance had to be adjusted to a loss Sh22.46 billion.
“2020 results were affected by one off adjustments related, among others, to the Covid-19 pandemic impairment provisions,” he said.
However the bank has made a substantial comeback in 2021 in many aspects including management of its operation efficiency keeping the Non-Performing Loans (NPLs) below the five percent benchmark at 4.1 percent.
The bank’s assets now stood at Sh2.26 trillion at the end of Quarter-4/2021 as compared to Sh2.16 trillion at the end of Quarter-3/2021.
According to the statement, NBC’s loans and advances increased by 10.8 percent to Sh1.38 trillion in Q-4/2021, courtesy of strong growth in its key market segments including agri-business, SME and Personal Loans.
Total Deposits grew by 7.1 percent, to Sh1.5 trillion, at the end of December 2021 compared to Sh1.46 trillion in September 2021.
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