THE National Microfinance Bank (NMB) has increased its dividend per share from 36/- to 50/- , approving a total of 25bn/- total dividend to shareholders.
This represents an increase of 39 per cent over last year's dividend of 36/- per share and a dividend yield of six per cent up from five per cent last year, according to the new Annual report. The Bank's Chief Executive Officer Mr Mark Wiessing said that in the course of 2011, the bank has further developed its ability to deliver financial and transactional solutions through a variety of branches.
He said the ATM network increased to 450 machines, serving 600,000 active accounts. The CEO said the bank operated in a favourable economic environment, with GDP for 2011 growing at around 6 per cent with inflation climbing to double digit. In the money markets, he said Treaury Bills and Treasury Bond rates remained on the high side.
"Despite the adverse impact of increase in domestic inflation combined with a number of factors such as load shedding, the bank's profit before tax has grown to 102bn/- and its profit after tax reaching 72bn/-," he said. Net income grew by 42 per cent on the back of strong loans growth and increased money market rates towards year end 2011 while non interest income grew 16 per cent.
Outgoing NMB Board Chairman Mr Misheck Ngatunga said during his nine years at the helm, he has watched the bank evolves from an institution with limited mandate to become a fully fledged commercial bank.
Meanwhile, the Annual General Meeting approved the appointment of Prof Joseph Semboja as the incoming non executive director nominated by the government.