By Guardian Reporter , The Guardian
SHAREHOLDERS of NMB Bank Plc have approved a remarkable increase in their
total dividend payout, which surged to an impressive 181bn/- from 143bn/- in 2022, which translates to a dividend of 361/- per share, showcasing a substantial 26 percent year-on-year (YoY) boost.The significant annual growth in dividend payout reflects the company's commitment to providing steady and sustainable returns to its shareholders. The dividend is scheduled to be paid around 19th June 2024.
The bank achieved a Profit before Tax (PBT) of 770bn/- and a Profit after Tax (PAT) of 542bn/-, both marking a 26 percent YoY increase. These strong financial results are credited to the bank's disciplined execution of its strategy, robust revenue growth, effective cost management, and enhanced quality of its loan portfolio.
It is said that the record profits signify a new milestone for the bank and the Tanzanian financial services sector, underscoring the institution's dedication to creating value for its stakeholders.
In 2023, the bank's total income surged to an impressive 1.4tn/-, an 18 percent increase from the 1.2tn/- reported in 2022. The notable growth was primarily driven by a robust increase in Net Interest Income (NII), which rose by 19 percent to 934bn/- from 786bn/- in 2022, attributable to the growth in the credit portfolio and investments in Government securities.
Additionally, the bank saw strong growth in Non-Funded Income (NFI), climbing from 402bn/- in 2022 to 468bn/- in 2023, a 16 percent YoY increase propelled by heightened customer activity on digital channels.
The bank showcased significant efficiency improvements and an enhanced loan portfolio quality. The Cost-to-Income Ratio (CIR) improved to an impressive 39 percent, while the non-performing loan ratio held steady at 3.2 percent.
These ratios are well below the maximum regulatory thresholds of 55 percent for CIR and 5 percent for non-performing loans, showcasing the bank's sound financial management practices.
The bank continues to enhance its balance sheet for improved asset earnings. With total assets hitting an unprecedented high of 12.2tn/-, marking a significant 19 percent increase from 10.2tn/- in 2022, the steady progression in the balance sheet is fueled by robust growth in loans and advances to customers by 28 percent, a prudent 17 percent investment in Government securities, and commendable 11 percent year-on-year growth in customer deposits.
Dr. Edwin Mhede, Chairman of the Board of NMB Bank Plc, emphasized the institution's commitment to governance principles, value creation, and the ESG agenda as key drivers of sustainable growth. He added, “For the 2023 financial year, shareholders approved a cash dividend of 361/- per share, resulting in a total pay-out of 181bn/-, aligned with NMB’s dividend policy.” This represents a 26 percent increase from the previous year and reflects a focus on delivering superior returns to stakeholders, underscoring the commitment to deepening NMB’s value creation.
NMB Bank’s Chief Executive Officer, Ruth Zaipuna, highlighted progress in executing the 5-year Medium-Term Plan (MTP) and strategic initiatives aimed at fostering loyalty and advancing financial inclusion. The expansion included opening four new branches, onboarding over 11,000 new agents, and reaching 28,295 agents in 2023. Additionally, over 1.2 million new customer accounts were added, aligning with the goal of creating a future-proof, technologically driven bank while investing significantly in employee development.
Zaipuna reiterated the bank's role as a driver of economic prosperity and provider of opportunities for clients and stakeholders. She expressed gratitude for the trust of clients and shareholders, acknowledging the dedication of employees in achieving milestones. The bank remains dedicated to supporting communities through sustainability initiatives, including education, health, entrepreneurship, and environmental and climate-related matters, as evidenced by an investment of over 6.2bn/- in 2023. A portion of the 2023 profit after tax, amounting to 5.4bn/-, is earmarked for continued community support in the upcoming year.
Zaipuna extended heartfelt gratitude to the NMB Board, shareholders, regulators, the Government, customers, and staff for their unwavering trust and support. The bank is committed to prioritizing strategy execution, innovation, community engagement, and delivering top-notch financial solutions to foster shared prosperity among its customers.
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