PBZ assets surge to 2.5tri/-, ranks 7th in Tanzania
ZANZIBAR: THE People’s Bank of Zanzibar (PBZ) experienced remarkable growth last year, with its assets surging to 2.5tri/-, propelling it to become the seventh largest lender in Tanzania.
According to its recently published unaudited financial statement total assets increased by 500bn/- a 22 per cent rise from 2.0tri/- reported at the end of December 2023.
The lender also posted a 28 per cent increase in net profit, reaching 65.53bn/- last year. This places PBZ among the top ten most profitable banks in a highly competitive market of 33 commercial banks in Tanzania.
The growth is largely attributed to significant improvements in loans, advances, overdrafts, other assets and interbank loans.
PBZ’s Managing Director, Arafat Ally Haji , credited the bank’s strong performance to a combination of factors, including digital transformation, business-friendly policies, financial inclusion, expansion, product diversification and a strong internal culture.
“The successful launch of an enhanced mobile banking app, along with improvements in internet banking and alternative service channels, have significantly increased accessibility.
“These innovations have enabled smoother transactions, boosting customer engagement and driving deposit mobilisation.”
Last year, the bank enjoyed stellar performance across a range of financial metrics, particularly showing impressive growth in both funded and non-funded income streams.
ALSO READ: Exim strong 2024 performance signals bold future
Funded income rose by 18 per cent to 118.56bn/-, compared to 100.52bn/- the previous year, while non-funded income saw a 35 per cent surge, totalling 51.72bn/-, up from 38.33bn/- in 2023. PBZ has focused on expanding its reach, particularly to underserved areas.
The bank, which has established a strong presence across Zanzibar, has now shifted its focus to mainland Tanzania, opening new branches in Morogoro, Mbeya, Mwanza and Kinyasini in Unguja.
This expansion has been further bolstered by an increase in agency banking platforms, now standing at 2,565, which have allowed PBZ to serve customers in areas beyond the scope of traditional bank branches.
PBZ has also maintained a robust loan book, with NonPerforming Loans (NPLs) accounting for just 2.03 per cent of total gross loans, reflecting effective credit risk management.
The bank’s diversified portfolio, which now includes bancassurance, insurance premium financing and tailored financial products, has further strengthened its position, attracting new customers while complementing existing credit services.
“These new services not only add value to our customers but also enhance our revenue streams,” Mr Haji said.
He also praised the leadership of President Samia Suluhu Hassan and Zanzibar’s President Hussein Ally Mwinyi for their efforts in creating a stable economic environment that supports the growth of the financial sector.
“Their visionary leadership and commitment to strengthening the financial sector have been pivotal in creating a conducive environment for PBZ’s continued growth,” he said.
