TANZANIA Agricultural Development Bank (TADB)’s net profit increased by 47 per cent in this year’s third quarter, attributed to net interest increase.
The agricultural bank’s financial statement released recently showed that net profit increased to 3.94bn/ in the three months to September from 2.66bn/- in a comparative quarter last year.
The lender, with more than 535bn/- of all assets until the end of last month, registered robust results due to the growth in interest income.
Net interest income, the report showed, has increased by 16.8 per cent to 9.63bn/- in Q3 from 8.24bn/- in a similar period last year.
The statement revealed the increase in the net interest income was attributed to the number of loans issued by the lender of some 358bn/- at the end of September from 317bn/- registered in Q2 at end of June.
Additionally, non-interest income climbed by 25.2 per cent to 1.52bn/- from 1.21bn/- cheers to foreign currency dealings and translation gains.
The foreign currency dealings and translation gains increased two times to 119m/- from 54m/- during a similar period in a prior year, despite the decrease in bank’s fees and commissions.
The lender’s commissions and fees declined by 2.27 per cent to 429m/- from 439m/- in the comparative quarter of last year.
Furthermore, TADB’s non-performing loans (NPLs) slightly declined by 2.68 per cent from 17.3bn/- posted at the end of June to 16.8bn/-. However it remains above the BOT’s benchmark ratio of 5.0 per cent.
TADB’s operation expenses have increased by 32.1 per cent to 2.82bn/- from 1.91bn/- pushed up by salaries and benefits and fees and commission.
According to the statement, salaries and benefits increased to 2.69bn/- from 2.10bn/- equivalent to 28.2 per cent while fees and commission slightly increased by 6.25 per cent to 85m/- from 80m/- posted last year.
The increment is attributed to the increased number of staff to 110 at the end of last month from 104 in a similar period last year despite maintaining the number of branches. The lender has five zonal offices.