Dar Es Salaam — MWANGA Community Bank (MCB) has come out of the red and made a net profit of 98.7m/- in the third quarter of this year.
The bank, with a single branch in Mwanga District, Kilimanjaro region, posted a net loss of 68.5m/- in a similar quarter last year.
MCB, which opened its doors to the public ten years ago, attributed its profit mainly to loan interest that generated 200m/- against 61m/- of noninterest income.
The profit increased the return on average shareholders fund by 14 per cent compared to minus 11 per cent of the same quarter last year.
On other hand, the bank assets reached 4.77bn/- to help increase lending portfolio to 62.8 per cent in the third quarter from 55 per cent of the second quarter this year.
The bank, a public limited company, set aside 98.7m/- for probably loss on loans and advances while writing off bad debts totalling 90m/- in the quarter ending September, this year.
The bank's customer deposits increased to 3.67bn/- from 3.27bn/- to push its loans and advances portfolio to 3.63bn/-.
The bank has no majority shareholder. Since 2005, the bank has been paying dividends to its shareholders who are individuals from every village of Mwanga District, people originating from Mwanga and other places living in the country.
In 2009 MCB obtained a Regional Bank licence from BoT which allows the bank to operate throughout Kilimanjaro Region.