TADB profit jumps 50pc on strong lending growth

DAR ES SALAAM: TANZANIA Agricultural Development Bank (TADB) posted a 50.1 per cent increase in net profit for the year ending December 2025, driven largely by strong growth in interest income amid an expanding loan portfolio.

Financial statements released on Tuesday show the bank’s net profit rose to 27.9bn/- at the end of last year up from 18.6bn/- recorded in the preceding year.

The state-owned agricultural lender, whose total assets stood at over 1.29tri/- as of December last year from 917.4bn/- attributed the impressive performance to a significant rise in net interest income.

According to the report, net interest income increased by 45.7 per cent to 73bn/- from 50.1bn/- recorded in a similar period in 2024.

The increase was largely supported by an expansion in lending, with total loans issued rising sharply to 806.7bn/- from 534.1bn/- in the previous year, reflecting strong demand for agricultural financing.

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However, the Bank’s noninterest income declined to 7.53bn/- from 9.71bn/-, mainly due to a drop in foreign currency dealings and translation gains, which fell by 48.8 per cent to 300m/- from 587m/-.

Despite the decline, fees and commissions registered a modest increase of 3.41 per cent to 3.39bn/- from 3.28bn/- .

In addition, the lender’s customer deposits increased more than threefold to 4.96bn/- at the end of the year, up from 1.47bn/- recorded in the same period previously, signalling growing customer confidence in the bank. Meanwhile, non-performing loans (NPLs) increased by 45.9 per cent to 21.1bn/- from 14.5bn/-.

Despite the rise in absolute terms, the NPL ratio slightly improved to 2.6 per cent from 2.7 per cent, remaining well below the Bank of Tanzania (BoT) benchmark of 5.0 per cent. The bank’s operating expenses also went up to 40.2bn/- from 29bn/-, largely driven by higher staff costs.

The report showed salaries and benefits rose by 27.9 per cent to 17.8bn/- from 13.9bn/- , following an increase in the number of employees to 150 from 134 in the previous year. The bank maintained its operational footprint with seven zonal offices across the country.