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Govt gets 30.7bn/- dividend from NMB

Govt gets 30.7bn/- dividend from NMB

THE Vice-President Dr Philip Mpango on Wednesday received a 30.7bn/- government dividend from NMB Bank, and directed institutions where the State is shareholder to honour their dividend commitment immediately.

The Vice-President equally ordered institutions with legal obligation to pay 15 per cent of their gross revenue on time. Dr Mpango challenged public entities that get subsidies from the Treasury to form precise and enforceable strategies to reduce dependency from the government, while directing the Treasury Registrar to take charge of the instructions.

The VP hailed NMB for honouring its commitment to pay dividend to government on time and urged the bank to continue supporting community development through its corporate social responsibility and heighten systems that will increase efficiency of the collection of government revenue.

The government received 30.7bn/- from its 31.8 per cent shares at NMB, which is equivalent to an increase of 41 per cent, compared to 20.8bn/- paid in 2020.

When gracing a similar event last year, Dr Mpango asked the NMB Bank Plc management to come up with more innovative solutions and raise its dividend to shareholders.

“I am happy to see that you have come up with a better dividend. When I go to welcome the President (from her visit to Oman), this is one of the things that I will inform her of. Congratulations!” Dr Mpango said. He added,

“NMB as one of the success stories of privatisation has continued to make the government proud by showing how it grows its capital and serves its customers.”

However, Dr Mpango challenged the banking sector in the country to come up with innovative strategies to reach more financially underserved rural populations, create jobs for youth and protect the environment.

On his part, the Finance and Planning Minister Dr Mwigulu Nchemba said his ministry will implement all the directives issued by the vice-president to ensure that all institutions for which the government is shareholder pay dividend on time.

He said the government will continue to work closely with all the private sector institutions to enhance their efficiency and contribute to economic growth. Earlier, the NMB CEO Ms Ruth Zaipuna told Dr Mpango that last year, NMB Bank’s net profit rose by 41 per cent to 290bn/- from 206bn/-in 2020.

The 30.7bn/-is part of a total dividend of 96.7bn/- which the bank’s shareholders approved during their 22nd Annual General Meeting (AGM) last year. With the money, the government has now received a total of 80.54bn/- from NMB Bank Plc during the past five years.

“In ensuring that NMB operates sustainably, we have managed to raise its capital to 1.3tri/-. We maintained a high level of operational efficiency and as a result, the cost to income ratio was reduced to 46 per cent,” said Ms Zaipuna. The banking regulator, the Bank of Tanzania (BoT) wants commercial banks to maintain costs to income ratios of not more than 55 percent while levels of Non-Performing Loans (NPLs) are to be contained to not more than five percent of total gross loans but NMB closed the year with only four percent in NPLs. She said it was on the back of such a splendid show, fueled by digital approach in service delivery, that the NMB Bank Plc received a number of international awards last year, including bagging the Best Bank in Tanzania from Euromoney awards for excellence for nine years consecutively.

The bank was also recognised as the Best Retail Bank in Tanzania by the Global Banking and Finance Awards.

“We have invested massively in digital service channels. We raised the number of banking agents to 10,194 in 2021 from 8,410 in 2020,” she said.

In his remarks, the NMB Bank Plc Board Chairman, Dr Edwin Mhede said the bank was doing everything possible to raise its performance further this year and yield more lucrative returns to its shareholders. 

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Author: DAILYNEWS Reporter in Dodoma

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