Government receives Sh6 billion in NBC dividend

 

By Alex Nelson Malanga

 

Business journalist

Summary

·         The amount is a portion of the Sh20 billion in dividend that the bank’s shareholders had agreed to be shared among them

Dar es Salaam. The National Bank of Commerce (NBC) yesterday paid Sh6 billion to the government as dividend following the lender’s profitability in 2022.

Speaking here at the handover event, the Bank’s CEO Theobald Sabi said the amount is a portion of the Sh20 billion in dividend that the bank’s shareholders had agreed to be shared among them.

The government holds 30 percent of the lenders’ shares, while South African financial services group Absa Group Limited and the International Finance Corporation (IFC), a member of the World Bank Group, account for 55 percent and 15 percent respectively.

Mr Sabi said last year's dividend to the government, which is higher compared to the Sh4.5 billion that the bank issued in 2021, was a result of the bank’s handsome performance in 2022.

Last year, he said, the bank’s pre-tax profit grew by 36.5 percent to Sh81.9 billion.

During the year ending December 2021, he added, the bank’s profit was quoted at Sh60 billion.

He attributed the bank’s good performance to the government’s efforts in creating a conducive business environment for financial institutions to thrive.

“The bank’s performance reflects an ideal business environment that allowed us to reach our customers conveniently,” appreciated Mr Sabi.

He went on to add: “We will continue to invest in technology, expand our footprints and improve our processes to meet and exceed our customers’ expectations.”

Receiving the cheque on behalf of the government, Treasury Registrar Nehemiah Mchechu commended the bank’s strong performance for 2022.

“The government is gratified with the enhanced performance of NBC Bank. As shareholders, we are pleased to see our investments paying off. This is highly commendable” he asserted.

Mr Mchechu went on to add: “The dividend of Sh6 billion that the government has received today will boost the government’s coffer which is key to financing strategic projects.”

Speaking earlier, NBC Bank Chairman of the Board of Directors, Dr Elirehema Doriye, said the trajectory performance of the bank reflects customers’ trust in the bank.

He said to keep the momentum going, the bank will continue investing in Information and communication technologies (ICT), a move that is key to reaching the unbanked and financially excluded population.

“We are happy to stay on course in our mission to attain our key targets in expanding our footprints and investing in technology to enhance our customers’ experience,” said Dr Doriye.

He added: “We look forward to a promising future where we can deliver the best experience to our customers.”