TANZANIA: TANZANIA Agricultural Development Bank (TADB)’s net profit increased by 54 per cent in the fourth quarter that ended in December last year, thanks to increased interest income.
The bank’s financial statement released on Wednesday showed net profit increased to 5.41bn/ in the three months to December last year from 3.51bn/- in a comparative quarter in 2022.
The farmer’s bank, with more than 620bn/- of assets until last December, attributed the positive performance to the growth in interest income.
Net interest income, the report showed, has increased by 27 per cent to 10.2bn/- in Q4 from 8.09bn/- in a similar period in the previous year.
Despite the increase in interest income, the farmer’s bank loan portfolio in Q4 slightly went down compared to the record set in the previous quarter ended in September.
Until the end of December last year, TADB managed to issue loans worth 330bn/- from 358bn/ registered in Q3 ended in September.
Additionally, non-interest income wheeled up by 6.8 per cent to 2.94bn/- from 2.75bn/- posted in a similar period in 2022. The increase was attributed to foreign currency dealings and translation gains.
The lender’s foreign currency dealings and translation gains increased to 56m/- in Q4 from 44m/- posted in 2022, equivalent to 27 per cent despite the decrease in the bank’s fees and commissions.
The lender’s fees and commissions declined by 75.4 per cent to 394m/- from 1.60bn/- in the comparative quarter of the previous year.
TADB’s Non-performing loans (NPLs) significantly declined by 24 per cent to 12.9bn/- from 16.8bn/- posted in Q3 ended in September last year.
The NPLs ratio until the end of December stands at 4.0 per cent, down compared to the BoT’s threshold of 5.0 per cent.
Furthermore, the bank’s operating expenses have increased to 4.62bn/- in Q4 from 1.91bn/- posted in a similar period of the previous year, pushed up by increased salaries and benefits.
According to the statement, salaries and benefits increased by 16.9 per cent to 2.81bn/- from 2.40bn/- posted in a similar period in 2022.
The increment is highly pushed by the increased number of staff to 125 at the end of last month from 105 in a similar period in a previous year.
The bank’s number of operating branches has also increased. The lender has six zone offices.