FBME, CRDB and NMB have maintained their position as the three largest banks by assets in the country, with 48 per cent of the total assets of the industry.
They have maintained the position in 2010 and 2011, according to the Tanzania Banking Survey 2012. In the same period, the Survey shows, overall banking industry assets increased by 2.6trln/- from 15.3trln/- to 18trln/- within the same period. This means the overall banking industry assets of 18tri/- is more than the 15tri/ of the government's budget in the current fiscal year.
The Survey shows that standing on top, FBME remained the largest bank with assets of 3.7trln/- followed by CRDB with 2.7trln/- and NMB coming third with 2.15trln/-. The Survey gives further insight, noting that all banks, except Commercial Bank of Africa and Mwanga Rural Community Bank, grew their assets.
The survey shows that the next seven largest banks had 33 per cent of the industry's assets while the remaining 35 banks held the other 19 per cent of the total assets. The next seven largest banks by asset are NBC, Standard Chartered Bank, Exim Bank, Stanbic, Citibank, Barclays bank and Diamond Trust Bank.
The Survey also shows the three largest banks by assets also having had more than half of the industry's deposits and government securities in 2011. "However, they lost market share in the number of branches from 54 per cent to 42 per cent, and employees from 50 per cent to 38 per cent, mostly to smaller 35 banks," it notes.
For the smaller banks, it adds that they expanded their market share of the industry's total capital, from 19 per cent to 26 per cent and loans from 20 per cent to 23 per cent. Good news, it adds, is that the country's banking sector performed better in 2011 compared to the previous year, with profit margins having increased by two per cent points from 19 per cent to 21 per cent as a result of the increase in interest income.
Selected industry rations show that banks did more lending in 2011 with loan to deposit ratio increasing from 47 per cent to 52 per cent. However, the share of deposits invested in government securities fell from 19 per cent to 14 per cent. The survey however shows that while it was a sizeable reduction of 5 per cent, it may not reflect an overall strategic shift in the industry.
"Closer analysis shows that by pulling out some 269bn/-, NMB alone accounted for 84 per cent of the 321bn/- decline in the banking sector's holdings of government securities. It goes on to show that even as lending by banks expanded, the bad debt provisions as a percentage of total lending fell from 0.9 per cent at the beginning of the year to 0.4 per cent by the year's end.