The National Microfinance Bank (NMB) annual general meeting at the weekend was all smiles after the shareholders approved 18bn/- to be given to them as dividends. Each share is worth 36/-.
The NMB Board Chairman Misheck Ngatunga, speaking to shareholders said the bank did very well last year despite threats, including the global economic crunch, adding that its profit rose to 53.9bn/-.
The bank remitted 25bn/- to the government in tax payment, he said, adding that they are looking forward to a brighter future.
Strong loans and advances, customer deposits and transactional volumes growth were the main contributors to the bank’s good results, the chairman stated.
He said NMB’s earning per share improved from 95.10/- in 2009 to 107.96/- in 2010.
In that respect the annual general meeting approved a dividend of 36/- per share, or a total amount of 18bn/-, up by 15 per cent over 2009 for its shareholders.
He said, the bank will continue to further improve customer service through all its channels, while continuing to control costs and mange credit and other risks prudently with a view to improving on its performance , both operationally and financially. He added that the bank will continue to invest in technology and cut over to a new core system in the course of this year.
“While the outlook remains favourable, the bank’s future performance remains dependent on interest rate developments and competitive pressures while the risk of adverse developments on loan portifolios is an inherent part of our business,” he concluded.
For his part, the bank’s Chief Executive Officer Mark Wiessing said with 19 percent market share and a loan portfolio of 16 per cent, the prospects of the bank are encouragin, thanks to the bank’s efforts made to reach out to the people.
He said the bank is now the leader in the country in terms of profit, but added that profits should not be the only thing to rely on to sustain a financial institution.
Reacting to journalists question on a report to the bank’s third annual general meeting since it was listed on the Dar es Salaam Stock Exchange in 2008 Wiessing said the year 2010 was “another notable year for NMB”.
“We have produced good financial results and continue with the strategy to provide affordable banking services to the Tanzanian population, in rural as well as in urban areas, and to key segments of the economy,” he said.
Earlier, Wiessing highlighted the growth of the branch network from 100 to almost 140 branches and the launch of Automatic Teller Money with now over one million cards in circulation.
He said the growth of the customer base from 600,000 to 1.4 million, the ATM network from nil to over 400 machines nationwide, the pioneering launch of NMB mobile with over 400,000 active mobile banking customers and the recent launch of Pesa Fasta (card less ATM service) reaching out to the unbanked factored into the bank’s success last year.
He clarified that they operated in a favorable economic environment, with GDP for 2010 growing at around 7 per cent, while inflation remained in the 5 to 6 per cent range.
“In the money markets, Treasury bond rates remained on the low side; despite the adverse impact of reducing market interest rates, the bank’s profit before tax has grown to 78bn/-, and its profit after tax reached 54bn/-” he noted.