NMB Bank PLC shareholders have approved TZS 48 billionin dividend (a 45% increase to its prior yeardividend payout) that will see every shareholder get TZS 96 per share. The resolution was made during the first ever-digital20thAnnual General Meeting (AGM) held last Friday.
The Acting Managing Director – Ruth Zaipuna handing over the Annual General Meeting Minutes and her presentation to the Interim Chairperson of the NMB Board of Directors – Ms. Margaret Ikongo (Left) moments after the NMB AGM. Looking on is the Acting – Chief Financial Officer – Benedicto Baragomwa.
The significant increase in dividend payout reflects the excellent 2019 annual results and a strong capital position of the Bank. The recommended dividend payout of TZS 48 billion or TZS 96 per share represents a forty five percent (45%) increase compared to dividend payout of TZS 33 billion or TZS 66 per share paid for 2018 and is in line with the bank’s dividend policy of paying out a third of its profit after tax (PAT) as dividend. The Bank’s long-term intention is to accelerate dividend growth in the coming years.
The Bank reported a TZS 142 billion profit after tax (PAT) for the year ended December 31, 2019; a forty six percent (46%) increase from 98 billion that was recorded in the previous year.
The increase in profitability was due to theincrease in operating income, reduction in impairment charges as well as cost control measures that saw the Bank closing the year with a zero percentage increase in operating costs.
Besides the said profit gains, the Board and Management of NMB are pleased to be able to report a number of innovations and successes during the year including the launch of alternative digital channels namelyNMB Mkononi and NMB Direct also an introduction of theenhanced agency banking model, NMB Wakala.
The stable B1 credit rating awarded to NMB by Moody’s confirms the confidence of international investors in the Bank. The Bank is well capitalized with a Tier I Capital Ratio of seventeen percent (17%) and is highly liquid. The Board’s Interim Chairperson, Mrs. Margaret Ikongo, revealed that the Board seeks to balance maximizing shareholders’ returns while also reinvesting funds into the Bank’s business inorder to finance its growth plans.
“NMB has over the years maintained a healthy capital position and we intend to continue doing so. To achieve this, it is crucial that we make the right decisions especially in anticipation ofany regulatory changes in capital requirements,” said the interim Chairperson.
“As a Bank, we are committed to continue playing a leading role in driving Tanzania’s growth agenda through credit extension in the personal/household sector, agriculture, insurance, manufacturing and construction”, added Ms. Ruth Zaipuna, the Bank’s Acting Managing Director.
Ms. Zaipuna said, the good results for 2019 underscores management turnaround strategy that sought to re-emphasize three strategic pillars; Deposit mobilization, Revenue generation and diversification, and operational efficiency.
NMB is also dedicated towards supporting Micro and SME’s growth especially in the agriculture sector by providing capacity building through advisory services on better ways to invest in agri-business value chain, backed by the NMB Foundation, which provides agricultural awareness and financial inclusion education in the sector.
“We are the leading Bank in Tanzania. Our best in-class governance, IT and support systems make our customers’ deposits and savings safer with us” she added.
