THE Tanzania Postal Bank (TPB) net profit has dropped almost 14 per cent to sh348 million from sh404 million in the last year's fourth quarter, on the back of increased wage bill.
The wage bill increased to sh2.52 billion in the quarter ending December compared to sh1.84 billion of similar quarter in 2011, after the number of branches went up to 28 from 27 pushing up the work force to 444 from 407. On the other hand, TPB net interest climbed up by over 37 per cent to sh5.22 billion thanks to the increase of loan portfolio and customers' deposits.
The non-interest revenue also increased almost 10 per cent to sh2.56 billion. The bank's loans and advances grew to sh101.38 billion from sh94.28 billion an increased helped by customers deposits that went up to 138.17bn/- from 132.03bn/-. The increase of the fund enables the bank to flex its loaning portfolio and pushed up the level of gross loans to total deposits to 71.39 per cent from 68.75 per cent.
However, the nonperforming loans to total gross loans increased slightly to 3.74 per cent from 2.92 per cent, but its well below the industry benchmark of five per cent. Though the bank profit went down slightly, the full last year net profit increased by almost 50 per cent to 3.84bn/-.
TBP that is looking ahead to go public once it gets a nod from the parliament, was established by the Tanzania Postal Bank Act No.11 of 1991 as amended by Act No.11 of 1992.
The bank became operational as a separate entity from the then Tanzania Posts and Telecommunications Corporation (TP&TC) from March 1992 with its own board of directors and management. TPB was established as a successor to the Tanganyika Post office Savings which was established by the Post Office Savings Bank Ordinance of 1925 and became operational in 1927.