15 December 2011

Tanzania: Bank Plans to Raise Customer Deposits By 56pc Next Year

Dar es Salaam — Dar es Salaam Community Bank Plc (DCB) plans to mobilise more customer deposits by 56.2 per cent to Sh116.8 billion in 2012 from Sh74.8 billion posted November this year.According to DCB managing director, Mr Edmund Mkwawa, the bank's profit will increase by 14 per cent to Sh4.2 billion in the same period from Sh3.7 billion recorded this year.

"DCB is expected to raise its lending portfolio by 42 per cent in 2012 to Sh34 billion from Sh59 billion registered this year," he said this at the event to take leave of the year 2011 and welcome 2012 on Tuesday.

Up to November this year, the bank's deposits surged to Sh73.5 billion, while its loans grew to Sh59.2 billion.

DCB's pre-tax profit went up to Sh3.5 billion.

The results have compelled the bank's board of directors to approve an increase of payment dividend of Sh65 per share next year from the current Sh57 per share.

The banker noted that in the coming year, his bank is also planned to fill up the loan gap worth Sh5 billion it loaned to the Tanzania People's Defence Force (TPDF).

Mr Kwawa said the bank's customers increased to 175,396 in December, and it is expected to open two new branches at Ukonga and Chanika in Dar es Salaam, the commercial capital.

Since its inception in 2000, the bank had spent a total of Sh16.6 billion for purchasing deposits from diverse social security fund institutions and commercial banks and lent them to local entrepreneurs.

DCB boss outlined that other future plans, include launching and implementing new innovative products and services.

The will also ensure that clients are served with a high level of dedication, courtesy, promptness and respect.

However, he noted that shareholders of DCB can at least afford a smile following the bank shares to record impressive performance on the Dar es Salaam Stock Exchange (DSE), with shares appreciating from the initial public price (IPO) of Sh280 per share last year to Sh640 per share December this year.

The bank has given loans to a total of 46,506 (78 per cent) clients for the rehabilitation and building houses as well as purchasing plots, while 9,540 (16 per cent) customers were used the lending for paying school fees.

A total of 3,577 (6 per cent) customers were utilised the loan for the establishment of small business activities, of which, 52 customers were used the loan for drilling water wells.

The Dar es Salaam Regional Commissioner (RC), Mr Meck Sadick urged the bank to channel loan portfolio to women led-projects.

He also underscored the need for simplifying the lending system and makes the loan available without stringent conditions.

"Despite the fact that women entrepreneurs are recognised as good borrowers and have shown their acumen in business, they are still stuck at a certain level. Also they are only found mostly in the cities that we want to see all over the country," he said.

He emphasized the need for capacity building of women organisations so that female entrepreneurs can be trained through the bank.

The RC also stressed on learning the use of technology by women entrepreneurs.

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