CITIBANK Tanzania’s net profit has gone up four times in three month to June 30, thanks to interest income.
According to the financial statement released over the weekend, the net profit rose by 321 per cent to 13.7bn/- from 3.25bn/- in this year’s first quarter.
The bank’s interest income slightly over doubled t to 14.5bn/- from 6.7bn/- as loan book expanded.
The report showed that loans increased by 16 per cent to 406.6bn/- at the end of Q2 compared to 348.2bn/- in Q1. The lender’s total assets grew to 1.15tri/- to the end of the first six months of the year.
Additionally, non-interest income increased nearly three times to 12.9bn/- from 4.8bn/-, attributed to foreign currency dealings and translation gains plus fees and commissions.
The foreign currency dealings and translation gains went up three times to 10.8bn/- from 3.4bn/- while fees and commissions increased to 2.05bn/- from 1.43bn/.
Also, the customer deposits increased by 9.6 per cent to 879bn/- from 801bn/-.
Citi’s non-performing loans (NPLs) stagnated at zero per cent in the first six months of the year though it set aside 1.33bn/- for the probable losses. The industry benchmark is 5.0 per cent.
Nevertheless, the US-based bank operating cost increased by 16.5 per cent to 4.91bn/- from 3.59bn/- in a similar quarter of a prior year, pushed by salary payments and benefits.
Citi Tanzania opens doors in 1995 and current has a single branch that provides coverage to all major urban centres in the country through strategic partnerships with their partner banks.
