Thursday, April 11, 2024

TCB targets third place in competitive market

Adam Mihayo, TCB CEO, emphasizes a key point during a media meeting in Dar es Salaam.

Photo: Carlos Banda
Adam Mihayo, TCB CEO, emphasizes a key point during a media meeting in Dar es Salaam.

By Carlos Banda , The Guardian

IN a highly competitive banking industry like Tanzania, where it can be challenging to distinguish oneself from the rest, Tanzania Commercial Bank (TCB) has boldly set its sights on becoming the third leading bank in the country.

During a speech in Dar es Salaam on Tuesday, April 10, 2024, Adam Mihayo, the Chief Executive Director of TCB, revealed the bank's ambitious plans to grow and expand its presence, with a mission to revolutionize the banking sector in Tanzania.

TCB doesn't just offer financial services; it goes the extra mile to truly understand the unique needs and aspirations of its clients. By providing personalized solutions and cutting-edge products, the bank seeks to foster strong relationships with customers, ultimately building trust and loyalty. 

By offering personalized solutions and innovative products, the bank is able to build strong relationships with its customers, earning their trust and loyalty. 

"Our consistent growth is driven by our unwavering dedication to excellence and our relentless focus on exceeding customer expectations," he emphasized. "We prioritize listening to our customers and thoroughly understanding their needs in order to provide the best possible service."

Mihayo elaborated, stating, "With a significant 30 percent increase in revenue, we have once again showcased our resilience and adaptability in navigating the ever-changing market. The continuous trust and confidence our customers place in us is evident through the substantial growth in customer deposits. Additionally, our commitment to promoting economic development is underscored by the rise in customer loans."

The CEO of TCB reported that expenses for the quarter totaled 43.2 billion/-, reflecting a 6.1% increase compared to the previous year. Additionally, total expenses increased by 2.5 billion/- from the first quarter of 2023 to the first quarter of 2024, reaching 26.8 billion/-. 

Moreover, TCB recognizes the significance of financial inclusion and remains steadfast in its dedication to serving underserved communities by expanding its branch network and forming partnerships with local organizations. 

"We offer a range of products specifically designed for pensioners, including the option to request a pension advance or access loans through our Wastaafu Loans Scheme. Our goal is to reach even the most remote areas and provide financial solutions to those who need them most," he confirmed.

He emphasized that the bank's key strategy for achieving its ambitious goals is to prioritize digital transformation.

"In today's digital age, customers expect seamless and convenient banking services, and TCB is dedicated to meeting those expectations. By investing in cutting-edge technology and modernizing our infrastructure, we are able to offer a wide array of digital banking solutions, making it easier for customers to manage their finances at any time, from anywhere," he elaborated.

"In fact," he added, "Our strategic direction and ongoing digitization efforts have allowed TCB to bring banking services closer to our customers than ever before, enabling them to conduct their banking activities at their convenience. This fosters a relationship of trust between the bank and its customers."

TCB's vision extends far beyond mere business growth and market dominance. The bank is deeply committed to making a positive impact on society through its corporate social responsibility efforts. Through initiatives supporting education, healthcare, and community development, TCB is actively enhancing the lives of Tanzanians and furthering the country's progress.

The goal of TCB to become Tanzania's third-largest bank is not merely aspirational; it reflects the bank's steadfast dedication to excellence, innovation, and customer satisfaction.

Emphasizing digital transformation, financial inclusion, and social responsibility, TCB is strategically positioned to achieve its goals and reshape the banking landscape in Tanzania. The future holds great promise for TCB, and it is only a matter of time before the bank secures its rightful place among the industry's top contenders.

Mihayo is incredibly bullish about TCB's growth prospects, confidently stating that the bank plans to distribute a substantial Sh300bn in loans to support Small and Medium Enterprises (SMEs). By focusing on innovative new approaches, TCB aims to make a significant impact on these burgeoning sectors.

Emphasizing the pivotal role that SMEs play in driving economic growth, Mihayo highlighted that these businesses contribute a substantial 30 percent to the total. TCB is set to ramp up investments in the production sector and provide crucial funding to over 2000 entrepreneurs, all in a bid to supercharge economic expansion.

Commenting on the bank's stellar performance, Mihayo proudly announced that TCB's total assets surged to an impressive Sh1.47 trillion in 2023, with ambitious plans to reach Sh1.7 trillion by 2024.

With a strong start to the year, the bank already notched up a profit after tax of Sh10.7 billion in the first quarter, setting the stage for a full-year profit target of at least Sh40 billion. Furthermore, TCB carefully managed its Non-Performing Loans ratio, cementing its reputation for prudent financial management.

In a testament to customer trust, the bank holds a staggering Sh1.17 trillion in customer deposits, representing an impressive 12 percent improvement from the previous year. With a relentless focus on SME empowerment and strategic investments, TCB is poised for even greater growth in the future.

"We are resolute in our commitment to drive operational efficiencies and decrease our cost to income ratio, notwithstanding the marginal increase in the current period," remarked Mihayo, outlining the bank's laser-focused strategy for sustained success.

Mihayo said the bank’s record of profitable growth was a result of continuous prioritization of the value and sustainable growth of the micro, small and medium-sized businesses in the country.

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