NBC Bank gives 10.5bn/- dividend, Treasury hails performance

DAR ES SALAAM: The National Bank of Commerce (NBC) has presented a whooping 10.5bn/- dividend to the government, marking the authority’s share of profits for the fiscal year 2024.

With the government holding a 30 per cent equity stake in NBC, this dividend signifies a direct benefit from the bank’s impressive financial performance over the year.

Presenting the amount’s cheque to President Samia Suluhu Hassan at the State House in Dar es Salaam, on Tuesday, the significant payout follows a year of remarkable operational success for NBC, which reported a total dividend of 35bn/- to its shareholders this fiscal year, and a robust pre-tax profit of 170bn/-.

Such results not only showcase the bank’s financial health but also its critical role in the nation’s economy. The event presided over by senior government officials, as well as representatives from various institutions and public corporations that include government shareholdings, was an occasion to reckon with in the city.

Among them were Minister of State in the President’s Office for Planning and Investment, Prof Kitila Mkumbo and Treasury Registrar Nehemia Mchechu, who celebrated the accomplishments of NBC during his remarks. Leading the NBC delegation were Dr Elirehema Doriye, Chairman of the Board of Directors, and Managing Director Mr Theobald Sabi, underscoring the bank’s commitment to transparency and accountability in its operations.

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In her address, President Samia underscored the vital importance of public institutions maintaining accountability to protect and expand government investments.

Equally, she called upon the institutions to fully engage in fostering economic development within the country. On his part, Treasury Registrar Nehemia Mchechu commended the bank for its exceptional performance, particularly as one of the few state-owned enterprises that operate efficiently with limited government shares, while consistently delivering increasing dividends.

“Today marks a proud moment as we announce that the government’s 30 per cent stake in NBC has translated into dividends that have surged by an impressive 600 per cent over the last five years. Receiving 10.5bn/- today is not just a financial achievement; it reflects a remarkable transformation in the bank’s operations and performance,” Mchechu pointed out.

Elaborating, he congratulated the bank’s Board of Directors and the management team, encouraging them to maintain this upward trajectory in performance for the benefit of all stakeholders involved. During the ceremony, Managing Director Theobald Sabi affirmed that this achievement is a clear reflection of NBC’s strategic focus on growth and transformation, coupled with its solid market performance.

“Our commitment as a bank is to provide a diverse range of services, from personal banking to commercial banking solutions, establishing ourselves as a vital economic partner. Our extensive network of strategically located branches, agents (WAKALA), and advanced digital channels ensures we meet the diverse needs of our clientele across the nation,” Sabi elaborated.

With a legacy spanning over 58 years, NBC is not only partially owned by the government, but also has a 55 per cent stake held by Absa Group Limited from South Africa, with an additional 15 per cent held by the International Finance Corporation (IFC).