TCB doubled net profit in Q3

Tanzania Commercial Bank (TCB) has posted one of the best performances after its net profit doubled in quarter three of this year.

The lender posted a net profit of 1.958bn/- in quarter three (Q3) compared to 0.869bn/- in quarter two (Q2).

According to the lender’s finance statement issued yesterday, the profit was attributed to net interest income despite slightly going down to 21.33bn/- from 23.95bn/- in Q2 after an increase in interest expenses.

The cost of money for loans—interest expenses—jumped up by almost 33 per cent to 12.98bn/- from 9.76bn/-.

Nevertheless, the lender, which its assets grew by 0.5 per cent to1.29tri/- from 1.284tri/-, wrote off 548bn/- in bad debts up by almost eight times compared to the previous quarter.

Also during the same quarter, the lender set aside 3.43bn/- for bad loans and advances, which is almost a similar amount set in Q2, mostly being an effect of inheriting TIB Corporate Bank, Twiga Bancorp and Tanzania Women Bank which went under.

The non-interest income raked in 10.63bn/- up from 6.55bn/-, pushed up mainly by other operating income while fees and commission came second. Foreign currency dealings almost generated the same amount of 1.344bn/-.

The profit for the quarter doubled earnings per share to 62/- from 31/-. The bank was planning to go public.

TCB, during the quarter, reduced non-performing loans to total gross loans to 8.36 per cent from 9.15 per cent.

However, the lender now seems out of the woods as its NPLs continue decreasing to 70.39bn/- in Q3 from 72.05 per cent in Q2.

TCB, formerly known as TPB Bank plc and was formed in 1925 as Tanganyika Post Office Savings Bank Ordinance was passed by the British Colonial government that established the Tanganyika Post Office Savings Bank. The bank underwent several transformations before assuming the name of TCB some three years back.

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