Absa Tanzania profit soars in 1H

DAR ES SALAAM : Absa Tanzania says its interim net profit nearly doubled during the first half of 2023 boosted by strong growth of interest and non-interest earnings.

The bank’s Head of Marketing and Corporate, Aron Luhanga said in Dar es Salaam yesterday that profit after tax surged to 23.7bn/- for the half year ended June 30 up from 12.5bn/- in the first six months of last year.

He said net interest income reached 47.7bn/- in the first half of 2023 compared with 37.6bn/- obtained in the first six months of last year while non-interest earnings increased to 38.1bn/- in the first half of 2023 up from 29bn/- made in the first half of last year.

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He said they were optimistic about growing further this year as the economy continues to expand which is reflected in growing of their business.

He said profit and revenue made in six months of this year had surpassed profit made the whole year in 2022.

 “We’re bullish about prospects for growth this year as the economy steadily improves,” said Mr Luhanga.

Tanzania economy is expected to grow stronger this year compared to last year as tourism recovers and global supply chain continues to stabilise.

It is expected to expand by about 5.2 per cent in 2023 from 4.7 per cent a year earlier driven by the sustained recovery in tourism and gradual stability in supply and value chains.

The economic growth slowed to 4.7 per cent in 2022 from 4.9 per cent in 2021 due in part to the impact of the war in Ukraine that sent commodity prices, notably on food and energy, soaring.

Total assets of the bank increased to 1.3tri/- in the second quarter of 2023 up from 1.26tri/- of the first quarter of the year, he said.

According to him customer deposits increased to 969.7bn/- in the second quarter of 2023 up from 878.2bn/- in the first quarter.

The bank increased income tax to the government 9.3bn/- in the first half of 2023 up from 5.4bn/- in the similar period last year, he said.

In the meantime, Absa Group posted meagre growth in interim profit driven higher interest rates, partly offset by soaring credit impairments.

The lender posted a headline earnings per share of 13.21 rand ($0.6945) for the half year ended June 30, against 12.67 rand the corresponding period a year ago.

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