NMB profit crosses half-trillion shillings

NMB Bank pre-tax profit has increased by 23 per cent for a year ending September, thanks to the disciplined execution of the bank’s strategy.

The lender, one of the largest banks in the country, year-on-year profit crossed half a trillion shillings mark on back of robust business growth, sustained cost efficiency and maintained good quality of the loan portfolio.

The pre-tax profit jumped to 569bn/- compared to 464bn/- registered in the corresponding period last year.

NMB Chief Executive Officer Ruth Zaipuna said on Sunday that the solid business momentum is supported by a stable and accommodative operating environment.

“We are delighted that we have been able to consistently deliver strong financial results.

“The solid financial results reflect a continued trust from our stakeholders and reaffirm our mission of being a catalyst for spurring the overall socio-economic development in the country,” she said.

On net profit basis, the bank recorded an increase in profit by 22 per cent to 398bn/- against 324bn/- recorded in September last year.

“We remain optimistic about the future and remain committed to further supporting the communities we serve,” Ms Zaipuna said.

During the period, the bank sustained strong revenue performance with net interest income increasing by 20 per cent to 692bn/- driven primarily by benefits from increased lending activities in both retail and wholesale segments.

Non-funded income increased to 334bn/- compared to 297bn/- in 2022 (12pc YoY), driven by increased customer activities on alternative channels, reflecting positive outcome of the bank’s accelerated investments in innovative digital financial solutions.

The bank’s balance sheet sustained its steady growth momentum to cross the 11.57tri/- mark as of end of Q3 of this year.

This growth was attributed to the strong growth in loans and advances and investment in government securities.

The net loans and advances grew 25 per cent year on year and closed the quarter at 7.0tri/- and Customer deposits increased by 15 per cent to 8.2tri/- mark.

Ms Zaipuna said NMB continues to demonstrate efficiency with cost to income ratio (CIR) reaching 38 per cent as of September from 41 per cent in September last year, well within the regulatory threshold of 55 per cent.

Ms Zaipuna said the low CIR was attributed to the disciplined cost optimisation initiatives whilst accelerating income growth momentum.

On the other side, the lender demonstrated improved loans portfolio quality with non-performing loans consistently maintained at 3.5 per cent and within the 5 per cent regulatory benchmark.

“NMB remains solid, sound and well-capitalised. Looking ahead, we will continue to drive revenue growth, ensure cost efficiency and optimise our balance sheet for better returns to our shareholders and continue to positively impact our community.

“With the quality investments we continue to make in our people, technology infrastructure, governance foundations and relationship with our stakeholders, we are optimistic of sustainable growth,” she explained.

The bank also closed Q3 this year as the largest listed financial institution in the East African region after attaining a market capitalisation of 2.3tri/-.

During the quarter under review, NMB demonstrated significant growth within the Dar es Salaam Stock Exchange (DSE).

The bank’s value grew by 32.2 per cent making NMB’s stock, the top gainer of the quarter.

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