DAR ES SALAAM: NMB Bank reported a remarkable 21 per cent year- on-year profit increase for the year ending September, driven by strong business momentum, improved efficiency and significant enhancements in loan portfolio quality.
According to the bank’s financial statement, profit before tax jumped to 687bn/- in the period under review compared to 569bn/- recorded the same period last year.
The NMB Chief Executive Officer, Ms Ruth Zaipuna, said yesterday that the bank’s strong performance was a testament to the resilience of its business model, disciplined execution of strategy and the deep trust of its stakeholders.
“As we approach the end of the year, our outlook remains optimistic, supported by a favourable policy and business environment,” she said.
“We will continue investing in technology, innovative solutions and our communities, alongside our people. Our commitment to unlocking further opportunities for sustainable value creation for all stakeholders remains unwavering.”
This historic performance marks another significant milestone for NMB and the country’s banking sector, highlighting remarkable progress in implementing the bank’s core strategy.
Also, with a cost-to-income ratio (CIR) of 37 per cent compared to 38 per cent in the same period last year, the bank’s efficiency ratio further improved and remained well within the regulatory benchmark of 55 per cent.
Additionally, the bank, one of the largest lenders in the country, net profit increase by 19 per cent to 476bn/- year on year from 398bn/- in the corresponding period last year.
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Moving forward, NMB, she said, will continue enhancing efficiency while maintaining a strong focus on strategic investments aimed at achieving continuous service and operational excellence.
Credit quality continued to improve, driven by a strong emphasis on quality credit origination and prudent risk management of the credit portfolio she said.
As a result, the bank’s non-performing loan ratio remained comfortably below the 5.0 per cent regulatory benchmark, closing quarter three at 3.0 per cent, a significant improvement from 3.8 per cent in the same period last year.
The bank maintained strong revenue performance during the period, with cumulative net interest income (NII) rising to 779bn/- from 692bn/- in quarter three last September.
Cumulative non-funded income (NFI) reached 430bn/- in Q3 this year, compared to 334bn/- in the same period last year.
The strong growth in NII and NFI was driven by robust balance sheet expansion and a significant increase in client activities, reflecting the positive impact of the bank’s accelerated investments in new technologies and innovative capabilities.
NMB balance sheet remaining a source of strength, after total assets soared by 16 per cent to 13.4tri/- for the year ending September.
This growth was primarily driven by the bank’s expanding deposit base, which rose by 12 per cent to 9.2tri/- and the loan book that increased by 19 percent to 8.4 tri/-.
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