loader
Dstv Dailynews  Mobile
Picha

NMB pre-tax profit reaches 93bn/- in Q1

NMB Bank cemented its market leadership in the first quarter of this year after its pre-tax profit surged by 34 per cent to 93bn/-, backed by operational efficiency.

Also, the largest lender in the land, net profit increased by 33 per cent in the first quarter to 65bn/- compared to 48.7bn/- registered in the corresponding period last year.

NMB’s Managing Director, Ruth Zaipuna, said over the weekend that the solid performance reflects continued revenue growth momentum, disciplined cost-optimization, and enhanced loan portfolio management.

“We had a promising start,” Ms Zaipuna said in a statement, since “we have a firm grip on cost and risk.” Total revenue grew 16 per cent year-on-year (YoY) to 224bn/- from 193bn/- recorded in Q1 last year.

The revenue growth, NMB Chief said, was driven by increase in net interest income due to increase in both loans and advances and investment in government securities.

In addition, the bank recorded 10 per cent YoY growth in non-funded income mainly due to increased customer activities on the bank’s digital platforms.

The execution of cost-optimization initiatives continues to yield positive results, with costto- income ratio improving to 48 per cent in Q1 from 52 per cent in Q1 last year, well below the regulatory threshold of 55 per cent.

“The bank will continue to implement cost-optimization and operational efficiency initiatives in line with overall bank’s strategic ambitions while continuing to serve customers better,” she said.

Asset quality has markedly improved, due to continued focus on better quality credit origination, robust portfolio risk management, and recovery efforts.

This has resulted in containment of impairment charge with marginal increase of 5.0 per cent YoY and improved non-performing loans (NPL) ratio to 5.0 per cent (within the regulatory threshold) from 6.9 per cent in the previous year.

The bank’s loans and advances grew 11 per cent YoY, while delivery of distinctive customer-focused value propositions has led to a 9.0 per cent YoY growth in customer deposits to 5.3tr/- in Q1 this year from 4.8tr/- in Q1 last year.

“We continue to place emphasis on maintaining a healthy funding base to support sustainable lending growth as we approach this year’s second half,” Ms Zaipuna said.

Zanzibar said on Thursday that more research ...

foto
Author: DAILY NEWS REPORTER

Post your comments

Advertisement

CRDB

Advertisement

CRDB

Recent Posts

Categories

more headlines in our related posts

latest # news