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MCB posts 11m/- pre-tax profit in 2023

MWALIMU Commercial Bank Plc (MCB) has navigated a turbulent financial landscape and reported a pre-tax profit of 11m/- last year, from a loss of 331m/- in 2022.

TANZANIA: MWALIMU Commercial Bank Plc (MCB) has navigated a turbulent financial landscape and reported a pre-tax profit of 11m/- last year, from a loss of 331m/- in 2022.

MCM Chairman Francis Ramadhani said, during the annual general meeting, that the profit was driven by a 3.0 per cent increase in total revenue.

These are no small achievements; they are significant steps towards greater profitability in the future to enable dividend payouts,” Mr Ramadhani said.

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MCB is owned by teachers under their umbrella of association—Tanzania Teachers’ Union. The bank interest income surged by 20 per cent, bolstered by strategic investments in long-term loans to short-term borrowers, while non-interest income saw a steady increase of 3.0 per cent. “We must indeed take pride in this new direction in managing our bank,” the chairman said.

Last year, the bank reduced the loan portfolio by 2.0 per cent due to liquidity crunch.

However, Mr Ramadhani said they have developed strategies to address the challenge moving forward.

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Efforts to maintain a quality loan portfolio paid off, with the year closing with a non-performing loan rate below 1.0 per cent. The customer deposit book also grew by 1.0 per cent, despite liquidity constraints.

The government through the Ministry of State in the President’s Office (Regional Administration and Local Government) Mohammed Mchengerwa pledged close collaboration with the bank to address some challenges.

MCB last year opened two branches in Dar es Salaam, complemented by eight others in Morogoro, Mwanza, Mbeya, Dodoma, Arusha, Kigoma, Rukwa and Mtwara.

The lender opened doors in 2012 and saw its customer base grow from 58,378 in 2022 to 60,008 last year.

Looking ahead, MCB aims to accelerate business growth to meet the targets set in the 2021-2025 strategic plans, focusing on strengthening operational systems.