Mwanga Hakika raises dividend payout
KILIMANJARO: MWANGA Hakika has raised shareholder dividend payout after the lender announced a 20 per cent increase in returns to investors, underscoring strong earnings growth and expanding customer business last year.
The board of Mwanga Hakika Bank proposed a dividend of 30/- per share, up from 18/- previously and the shareholders approved the amount, reflecting improved profitability and solid balance sheet performance driven by growth in both deposits and lending activities.
The Mwanga Hakika Chairman Eng Ridhuan Mringo attributed the great achievements to among other factors, measures implemented by the board over the past two years, aimed at making the institution one of the best financial entities inside and outside the country.
“These achievements are evidence of the increasing trust of our customers in the services provided by the bank, thanks to a series of measures adopted by the board and the management aimed at improving the bank’s services every step of the way”, he told the AGM over the weekend.
The lender made a profit of 18bn/- last year up from 14bn/- it made in 2024, an increase of more than 20 per cent. Deposits increased by 48 per cent to 317.57bn/- from 214.85bn/-, while loan portfolio increased by 53 per cent to 305.30bn/- from 199.48bn/-. Income rose to 36.89bn/- from 27.83bn/-.
The lender’s cost-toincome ratio (CIR) stood at 50 per cent last year while in the first quarter of the current year, it reported a significantly improved CIR of 30 per cent, the lowest in the market over the period.
The Bank of Tanzania (BoT) requires commercial banks to maintain a CIR of no more than 55 per cent.
The chairman said the bank was recognised at the regional level due to the quality of its services and its significant contribution to the nation’s economic development.
“Mwanga Hakika Bank won the Best Consumer Choice Awards Africa for 2025 in the category of Best and Friendliest Mid-Size Loans, delivered through its ‘Fursa Loans’ product,” he said.
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The bank also won the Best East Africa Building and Construction Awards 2025 for its contribution in financing and supporting strategic infrastructure projects in the East African region.
The Mwanga Hakika Bank Managing Director, Mr Jagjit Singh, said the bank’s new five-year strategy (2026–2030) is aimed at sustaining commercial growth, with a strong focus on key customer segments, particularly Small and Medium Enterprises (SMEs) and retail clients.
“To achieve this goal, the bank will continue to strengthen its digital systems, expand financial services to a broader customer base, and improve operational efficiency,” he said in a statement read on his behalf by board member Engineer John Msemo.
Mr Singh said the strategic plan also targets upgrading the bank to Tier 1 status by 2030, with total assets projected to reach 1.5tri/-.
According to him, the bank continued to strengthen its capital, where by March, 2026, the bank’s capital value reached 57.51bn/-, this being above the BoT minimum limit which requires a commercial bank’s capital value to be 15bn/-.
