Tanzania Daily News (Dar es Salaam)

9 April 2014

Tanzania: Exim Bank Hits Sh20 Billion Profit Mark

EXIM Bank Group, with operations in Tanzania, the Comoros and Djibouti has hit 20bn/- profit mark, the firm's audited financial results for the year ended December 31, 2013 shows.

The results released recently reflect 21 per cent increase in profit from 16.5bn/- reported in 2012. The bank's balance sheet grew by 18 per cent from 967bn/- to cross a 1tri/- mark, after hitting 1.14tri/-, as the country's fifth largest bank in Tanzania.

Customer deposits grew modestly by 11 per cent from 723bn/- to 804bn/- following a strategic decision to focus on low cost deposits. Loan and advances portfolio recorded a growth of 23 per cent from 455bn/- to 559bn/-, with disbursements well diversified to all sectors of the economy.

Further, the increase in value of investments available for sale and business profit resulted to a significant growth of the shareholders' fund by 43 per cent from 109.4bn/- to 157bn/-.

The Exim Bank Chief Finance Officer, Mr Selemani Ponda, said the impressive results and the on-going performance improvement demonstrated potential growth of the Bank.

"Last year we aggressively implemented growth strategies through mobilisation of low cost deposits and operational efficiency that ensured customer satisfaction," said the CFO.

He added, "As a result of these strategies, fee-based income recorded a significant growth of 33 per cent from 22.8bn/- last year to 30.4bn/-."

The International Business demonstrated marked improvement with a strong performance of 26 per cent pretax profit growth year on year of Exim Bank Comoros to 3bn/-, thus contributing 15 per cent to the Group profit.

The other subsidiary, Exim Bank Djibouti which was opened late 2011 showed improved business performance and expects to break-even this year. During the year, net interest income grew by 1 per cent from 45bn/- 45.4bn/-.

Foreign exchange income posted a significant growth at 73 per cent from 4bn/- to 6.9bn/-, while other fees and commission recorded an increase of 24 per cent from 17.7bn/- to 22bn/-.

"We are excited with this trend in our performance reflecting growth in all our business segments. Our total operating income increased by 12 per cent from 67.7bn/- to 75.8bn/-," said Mr Ponda.

As the result of recovery efforts and continued monitoring, the quality of the loan book significant improved during the year, where gross Non-performing assets to total gross loan ratio dropped from 14 per cent to 9 per cent.

As it aspires to offer international standards banking services, the bank scooped overall winner of top customer focused banks in Tanzania out of about 52 banks operating in Tanzania.

The training centre- 'Exim Academy' got ISO certification in an endeavour to manage talents as well as part of staff retention strategy.

EXIM Bank (Tanzania) Limited was established in 1997 and expanded its market by opening subsidiaries in Comoro (2007) and Djibouti (2010), hence become the first local bank to go offshore.

Ads by Google

Copyright © 2014 Tanzania Daily News. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.