27 October 2010

Tanzania: DCB Net Profit Increases

Dar Es Salaam — THE Dar es Salaam Community Bank (DCB) net profit in the third quarter increased by 37 per cent to almost double its earning per share, the bank's financial statement shows.

DCB, a listed company, posted a net profit of 2.26bn/- last month against 1.65bn/- in June this year. The basic earning per share went up from 43/- to 70/- on year-to-year basis. The bank, with only four branches, attributed its profit to loan's interest revenue that generated a net return of 2.14bn/-.

Stockbrokers are terming DCB's shares as one of the best products with high yield at the moment and in future at the Dar es Salaam Stock Exchange (DSE). Rasilimali Limited Chief Executive Officer, Mr Arphaxad Masumbu had predicted earlier that DCB dividend will double this year from 28/- as its net profit is project to appreciate further this year.

Last year, the bank's dividend yield was 20 per cent and exports say that no other assets can give an investor such a profit with the figure likely to improve further this year.

The bank share appreciated by 1.82 per cent to 280/- last week. According to brokers, the bank which listed at the DSE about two years ago has demonstrated a good performance despite its small customer base. Nevertheless, the bank's customer deposits reached 61.92bn/- last month to increase the total gross loans and advances to 75 per cent.

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