Dar es Salaam — Bank M Tanzania Plc has announced its 4th quarter financial results showing a 16 per cent growth in the profit before tax for 2015 despite challenging times.
The pre-tax profit for the year ended December 31 was Sh23.27 billion compared with Sh20.10 billion earned during the previous year. The bank's deputy chief executive officer Jacqueline Woiso told a press conference yesterday that the previous year was challenging across the banking industry due to elections and weakening of the shilling against the US dollar, things that affected the banking business.
"However, we managed to overcome the challenges and register an all-time high profit level of Sh23.27 billion in 2015," she said attributing the achievement largely to interest earnings generated from lending portfolio, foreign currency dealings and fees and commissions from banking transactions and other services.
Revenue from loans follow a growth in the bank's loan book which increased to Sh670.8bn from Sh644.19bn over the last quarter. High earnings were also projected from good returns on non-interest income that shot up by over 32 per cent to Sh23.66bn at the end of December 2015, according to the financial statement. The bank said its non-performance loans had consistently remained at 2.5 per cent against the industry average of 5 per cent.
The bank's total assets also increased to Sh861.98 billion from Sh689.35 billion in the year ended December 31, 2014 indicating a growth rate of 25 per cent over the year. The bank's total deposit increases also by over 24 per cent to sh726.89 billion at the end of December 2015.
Tanzania has over 50 banks, but over 70 per cent of the market is controlled by about 10 commercial lenders. Bank M is among the top 10 banks by assets.