NMB shareholders to pocket 143.1bn/- dividend

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NMB Bank has raised its dividend payout to shareholders to a record of 286/- per share this year up from 196/- last year as interest income boosted earnings in the year ended last December.

Owners of one of the country’s top lender unanimously declared the new cash bonus on Friday during the 23rd Annual General Meeting (AGM) of one of the top three most profitable banks in the EAC bloc.

Chief Executive Officer Ms Ruth Zaipuna said after improving its Cost-to-Income Ratio (CIR) to 42 per cent in 2022 against the previous rate of 46 per cent, NMB Bank has now joined the ranks of the most efficient banks in sub-Saharan Africa.

The approved dividend will be cashed on or about June 14, 2023.

Announcing its approval at a press conference in Dar es Salaam at the weekend after the AGM, Ms Zaipuna said 2022 was the best year ever for the bank where each share earned an additional 93/- over the 193bn/- that was paid last year to mark yet another milestone in the 25 years history of the bank as several other financial performance records we set during the year.

“Year 2022 was a historic year and the most successful for the bank. Building on our strength and the remarkable journey we began 25 years ago, NMB Bank posted the best operating results in its history,” she pointed out.

The record numbers include 1.19tri/- total income, the 429bn/- post tax profit and total assets that jumped to 10.2tri/-.

Ms Zaipuna attributed the monumental achievements to the interplay between disciplined strategy execution and the delivery of financial and non-financial objectives.

She said the outstanding profitability outturn was mostly driven by surge in interest income, which rose following increased lending activities.

Non-funded operations also played a pivotal role as use of the bank’s alternative service channels maintained growth momentum.

Other factors she pointed out for the 2022 triumphs were containment of bad loans and taming operational costs.

Whereas the loans impairment charge dropped 28 per cent from 113bn/- to 81bn/-, operating expenses slightly went up by nine per cent but against a 21 per cent growth in revenue.

“Increase in our net interest income was a result of not increasing the lending interest rates but due to increased loaning activities.

The non-interest income also went up 31 per cent,” Ms Zaipuna noted.

Overall, the bank continued to record strong balance sheet growth, supported by healthy funding and capital positions.

Its loan book during the year was up by 29 per cent at 6tri/- from the 2021 level of 4.6tri/-.

The deposits base was likewise higher, ballooning by 14 per cent to 7.6tri/- from 6.6tri/-.

As a result of strong balance sheet momentum, total assets grew by 18 per cent from 8.7tri/-, surpassing the 10tri/- mark for the first time.

The assets quality was also bettered significantly with the risk of losses from borrowers defaults continuing to decrease as the non-performing loans ratio improved to three percent from 3.6 per cent.

“In 2022, we did not only post good results and continue making profitability history but also paid the requisite taxes to the government and continued to touch the lives of people through social investments,” NMB Board Chair Dr Edwin Mhede said.

 

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