TANZANIA Commercial Bank’s (TCB) net profit has soared by 26.3 per cent, thanks to an increase in non-interest income.
The bank’s financial statement showed net profit increased to 2.4bn/-from 1.9bn/- in three months to March from a similar period last year.
Additionally, the lender, which has a total of 1.42tri/- in assets at the end of March, non-interest income increased by 12.2 per cent to 9.0bn/- from 8.0bn/-, boosted by fees and commission and foreign currency dealing and translation gains.
The statement issued recently showed that foreign currency dealing and translation gains increased by 15.4 per cent to 1.64bn/- from 1.42bn/- while fees and commission climbed up to 5.21bn/- from 4.14bn/-.
On the other hand, the net interest income slightly went down by 9.0 per cent to 22bn/- in the first quarter from 24bn/- in the prior year.
The net interest income was pulled down by the amount loaned out in the first three months of this year. The loans increased minutely by 2.0 per to 858bn/- from 842bn/-.
The statement showed that customer deposits increased by 7.0 per cent to 919bn/- at the end of March from 862bn/- in a similar period last year.
Additionally, non-performing loans (NPLs) have gone up to 8.83 per cent from 8.43 per cent. The lender set aside 2.4bn/- for bad loans down from last year’s 3.5bn/-.
TCB’s operating cost has slowed down slightly by 5.0 per cent to 3.7bn/- this year from 3.9bn/- resulting from the decreased number of staff from 1089 to 1073 despite the increased number of branches to 52 from 47.
The government owns an 83 per cent stake in TCB while Tanzania Posts Corporation, the Revolutionary Government of Zanzibar, TP and TC Savings and Credit Society, the Public Service Social Security Fund and Workers’ Compensation Fund eight per cent, three per cent, three per cent, two per cent and one per cent respectively.
In 2018, the regulator, Bank of Tanzania, merged Twiga Bancorp and Tanzania Women’s Bank into Tanzania Postal Bank due to their poor performance. In June 2020, the central bank merged TIB Commercial Bank into TPB. The merger brought the total assets of the bank to over 1tri/-.
In June 2021, the bank rebranded to Tanzania Commercial Bank (TCB), to reflect the national nature of the institution.
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