24 January 2018

Tanzania: Bank of Baroda After Tax Annual Profit Soar

Dar es Salaam — Bank of Baroda Tanzania recorded a cumulative profit after income tax of Sh3.13 billion during the year ending December 2017.

The year which ended December 2016, the bank recorded Sh3.02 billion after tax annual profit.

However, on quarterly basis, the after tax profit slowed to Sh340 million during the fourth quarter of last year compared to Sh818 million recorded during the fourth quarter of 2016.

The lower after tax profit was caused by increased non-interest expenses which grew by 50 per cent to Sh1.8 billion during the fourth quarter from Sh1.2 billion recorded during similar quarter last year.

A statement released by the Bank indicates that the increase of non-interest expenses was also recorded on annual basis as it jumped to Sh5.5 billion during the year ending December 2017 from Sh3.4 billion recorded during the year ending December 2016.

The bank managed to contain the non-performing loans and advances to total loans at 10 per cent during the period under review, which is the industrial regulatory NPLs benchmark.

According to the statement, the bank's total assets also fell to Sh170 billion in Q4 last year from Sh173 billion recorded during Q3 of last year due to fall of cheques and item for clearing, cash, balances with other banks, and balance with Bank of Tanzania.

Customer deposits slowed to Sh126.5 billion during the last quarter of last year from Sh132.5 billion recorded during the third quarter of last year while loans and advances increased to Sh86.2 billion from Sh81 billion during the third quarter.

Cumulatively, earnings per share slowed to Sh314 during the year ended in December 2017 from Sh303 recorded during the year ended in December 2016. Number of branches remained four during the period under review.

The report show that number of the bank employees went down to 48 during the last quarter of last year from 52 recorded during the third quarter of similar year.

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