NMB Bank Plc. Shareholders Approve TZS 68.5 billion dividend payout for 2020, a 43% increase over 2019 dividend payment.
At its 21st Annual General Meeting held on June 4th 2021, shareholders of NMB Bank Plc., Tanzania’s leading financial institution, approved a dividend payout of TZS 137 per share, amounting to TZS 68.5 billion, for the financial year ended 31st December 2020.
The TZS 68.5 billion dividend payout is a 43% increase compared to the dividend payout of TZS 48 billion paid for the year ended 31 December 2019.
This marks the third consecutive annual increase in the company’s dividend. The dividend will be paid on or about 16th June 2021.
The 43% increase in dividend payout reflects the excellent 2020 annual results, and the strength of the Bank’s capital position. In a year which was shaped by uncertainty in the overall global operating environment due to the COVID-19 pandemic, the bank recorded a 45% rise in profit after tax to TZS 206 billion in 2020, setting a record in the Tanzanian banking industry. The bank also recorded an industry-best 51% cost-to-income ratio and a 5% NPL ratio at the end of December 2020, both being within regulatory limits. This demonstrates the bank’s continued commitment to operational efficiency (cost controls) and improved risk management over lending portfolio. Furthermore, the bank’s strong first quarter 2021 results affirm the disciplined execution of the bank’s strategy, with the profit after tax increasing 33% from the first quarter of 2020 to TZS 65 billion in the quarter ended 31st March 2021.
The bank has a healthy balance sheet, maintains solid capital levels which are well-above regulatory benchmarks, and is internationally recognized for being a stable and sound bank.
Dr. Edwin Mhede, Chairman of the Board of NMB Bank Plc, stated “I want to thank all the NMB Bank Plc shareholders for their support and confidence in the Board and Management team. The approved dividend payout reflects consistent delivery of strong returns to our shareholders and value-creation to our stakeholders as the bank continues to transform lives. We wish to reiterate our commitment to further maximizing returns to our shareholders and communities and will continue to leverage off our strong fundamentals to achieve our strategic aspirations.”
The bank’s Chief Executive Officer, Ms. Ruth Zaipuna, added: “In 2020, we delivered a solid financial performance in the context of a challenging broader operating environment. Our continued strong performance into 2021 shows good progress along our strategic plan and provides reassurance on the direction we have taken. We have a strong balance sheet and solid capital levels which not only demonstrates our resilience but also gives us much room for growth.” Ms. Zaipuna further added “We will build upon the bank’s firm foundations for sustainable business growth. We remain committed to delivering relevant, customer-focused innovations through transformative experiences for our customers and stakeholders whom we have the pleasure to serve. Through our pool of talent and disciplined execution of our strategic plan, we remain committed to playing a key role in supporting Tanzania’s socio-economic development agenda by providing best-in-class service to our customers and strong returns for our investors. I am grateful for the continued support from our valued customers, stakeholders, and partners, and we look forward to continuing to provide transformative experiences for them.”
For enquiries contact:
Eunice.Chiume, Head of Communications and Corporate Affairs
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
For more information about NMB and its services, please visit our website:www.nmbbank.co.tz
