Sh1.4 billion approved for Swissport shareholders

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Dar es Salaam. Shareholders of Swissport Tanzania Plc will receive a Sh1.4 billion dividend as the ground handling firm’s profit rises. This translates into a Sh41.8 dividend per share.

The firm’s CEO, Mrisho Yassin, said the company’s profit before tax rose to Sh3.9 billion in 2022 from Sh2 billion in the preceding year.

The company resumed payment of dividends last year, when Sh1 billion was shared.

In 2020, the company recorded a loss for the first time due to Covid-19 outbreak.

He said the company’s revenue has been growing due to the improved efficiency of its handling operations and promised that it will increase investment in the procurement of modern equipment.

Mr Yassin said the company will also continue to recruit professionals and increase storage facilities at airports of operations in order to create more jobs for citizens.

Currently, he said, Swissport Tanzania has 800 workers, 500 more as compared to 300 employees at the commencement of operations.

An investor and stock exchange stakeholder, Mr Mnanka Winani, said post Covid-19 operations have revived tourism and handled freight, therefore improving the market.

“Swissport Tanzania PLC should increase awareness about the operation of stock shares and make close follow-ups about investments and reports that will increase efficiency,” he said during the company’s AGM. During the meeting, different agenda items were deliberated, including approving the 2022 financial statement.

Swissport Tanzania Plc is a subsidiary of Swissport International Ltd, a leading ground and cargo handling services provider in Tanzania.

The company operates at Julius Nyerere and Kilimanjaro International Airports and was previously known as the Dar es Salaam Airport Handling Company (Dahaco).

It started operating at the Julius Nyerere International Airport (JNIA) on October 1, 1985, and extended operations to the Kilimanjaro International Airport (Kia) in October 1990.

In 2000, Swissport International Ltd acquired 51 percent of the shares of Swissport Tanzania (then Dahaco) to become the majority shareholder of Swissport Tanzania.

The remaining 49 percent of the company’s shares are held by the public through the Dar es Salaam Stock Exchange (DSE).

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.