Kilimanjaro Co-op Bank profit soars

Kilimanjaro Co-op Bank profit soars

THE Moshi based Kilimanjaro Cooperative Bank Limited (KCBL) posted a 318m/- profit before tax, up from a 54m/- registered in the previous year, on increased interest income and cost minimization.

"This is another milestone as far as our institution is concerned, after resuming the financial services several years ago; it is a great relief after working for many years without getting any profit," KCBL Board Chairman, Dr Gervas Machimu said on the 25th Annual General Meeting (AGM) held in the region, recently.

He added: "This achievement is a good continuation and something to be proud of because before this we had a loss of 1.3bn/- in 2019 and another loss of 600/- in 2020."

He said by December last year, the loan portfolio increased to 4.6bn/- up from 320m/- in 2020.

The customer's deposits ​​also increased from 5.3bn/- to 5.5bn/- and the number of KCBL customers with accounts and deposits increased from 12,000 to 15,700 customers.

He said another achievement is the decrease in the value of bad loans which had dropped from 74 per cent in 2020 to 3.2 per cent.

Dr Machimu attributed the great achievements to the good cooperation between the board and the management of the bank as well as the great efforts made and continues to be made by the KCBL strategic investors the CRDB Bank.

KCBL General Manager, Mr Godfery Ng'urah said that the bank's leadership is now focused on innovations and expanding the scope of its products.

"These strategies are aimed at integrating financial and economic groups’ services as it is stated in the bank's strategic plan that goes through the year 2026”, he said.

Mr Ng'urah continued to say that the strategies included the launching of new products and accounts specifically for customers' savings and deposits.

"These products include Kilimo Tija account (Agricultural Productivity account) meant for Agricultural marketing Savings and Credit Societies (Amcos) and Mama Africa account aimed as providing loans to women entrepreneurs", he said.

Author: HECKTON CHUWA in Moshi

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