Wednesday, April 10, 2024

PBZ’s earnings per share up by 65 percent in 2023

People’s Bank of Zanzibar (PBZ) earnings per share jumped by 65 percent to 165/- last year.

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People’s Bank of Zanzibar (PBZ) earnings per share jumped by 65 percent to 165/- last year.
By Guardian Reporter The Guardian

Published at 03:37 PM Apr 10 2024People’s Bank of Zanzibar (PBZ) earnings per share jumped by 65 percent to 165/- last year, compared to 100/- recorded in 2022, thanks to increased profitability.

The bank audited financial statements for the year ended in December 31st, 2023 published yesterday shows net income after income tax amounted to 51.3bn/- compared to 30.6bn/- earned in 2022, driven by growth of interest and non-interest incomes.

Interest income during the reported year amounted to 100.5bn/- compared to 71.2bn/- recorded in 2020, while non-interest income increased to 38.3bn/- compared to 32.4bn/- respectively, which translated into operating income of 74bn/- from 44bn/- respectively.

The growth of interest income resulted from increased lending, which amounted to 1.04trn/- last year,  which is equivalent to 65.23 percent of total deposits from customers, other banks and financial institutions, compared to credits valued 802bn/- issued during the year 2022.

The statements show that the bank has also managed to maintain the lowest rate of Non-Performing Loans (NPLs) at 2.47 percent in 2023, which is lower than the industrial rate of 4.3 percent and regulatory benchmark of 5 percent.

According to the statement, the increase of non-interest income resulted into expansion of income from foreign currency dealing and transaction gains, fees and commission, doubled dividend income and other operating income.

The bank’s total assets amounted to 2.06trn/- last year compared to 1.4trn/- in 2022, driven by an increase of cash, balance with Bank of Tanzania (BoT), balance with other banks and financial institutions, investments in government debt instruments and loans.

Balance with BoT grew sharply to 469bn/- in 2023, from 69bn/- in 2022, while balance with other banks and financial institutions went up to 189bn/- compared to 134bn/- respectively.

The statements show that total liability also grew by 50 percent to 1.8trn/- compared to 1.2trn/- respectively, due to increased customer deposits mobilization which amounted to 1.6trn/- from 960bn/- mobilized in 2022, and special deposits amounted to 106bn/- from 95bn/- recorded in 2022.

The bank which provides both sharia compliant and conventional banking services also managed to grow its capital based to 191bn/- last year, compared to 146bn/- recorded during the previous year.

The increase of the bank’s capital resulted from improvement of retained earnings, profit account and doubling of other capital account.

During the reported period, the bank also managed to increase the number of branches to 31 from 29 in 2022, which resulted into an increase of employees to 485 from 479 reported in 2022.

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