NMB Managing Director Ms Ineke Bussemaker announcing resolutions of the bank’s shareholders who approved a dividend of 52bn/- resulting from profit after tax of 150.2bn. Left is NMB Chief Financial Officer, Waziri Barnabas. 

NMB Managing Director Ms Ineke Bussemaker announcing resolutions of the bank’s shareholders who approved a dividend of 52bn/- resulting from profit after tax of 150.2bn. Left is NMB Chief Financial Officer, Waziri Barnabas.

Dar es Salaam, June 4, 2016.

National Microfinance Bank plc held its 16th Annual General Meeting (AGM) at Mwalimu Nyerere Convention Centre. This was the 8th NMB AGM since the bank was listed on the Dar es Salaam Stock Exchange in 2008.

Financial Results

During this AGM, NMB Chief Financial Officer   – Waziri Barnabas, made a presentation to the shareholders of NMB on the progress made by the bank in 2015. He said “Once again this year NMB Plc has achieved a fairly impressive financial results.

The CFO, Waziri Barnabas added: “It is therefore with great pleasure that I can report that the banks financials have continued its momentum, with stronger top line growth and higher balance sheet growth of 18% to reach total assets of TZS 4.5 Trillion”. The bank has also continued to gain market share in loans and deposits and spectacular Key Performance Indicators (KPIs):

· 5% Organic Interest income growth from TZS 417 Billion in 2014 to TZS 438 Billion in 2015.

· 18% Organic non-funded income growth from TZS 144 Billion in 2014 to TZS 170 Billion in 2015

· The increase in cost of funding and high exchange rates, reduced profit after tax (PAT) to TZS 150 Billion being 4% slightly below last year’s PAT of TZS 155 Billion, however, operating income have maintained at the same growth levels as last year at TZS 472 Billion.

· Non-Performing Loans (NPL) ratio of 2% lower than previous year by 1%.

· Loans and advances up by 24% to 2.4 Trillion.

· Customer deposits up by 19% to TZS 3.6 Trillion.

· Increased dividend yield from 3.4% in 2014 to 4% in 2015.

The bank’s efficiency ratios outperformed the market in 2015, with NMB’s operating cost to income ratio being at 57% (versus the market at 63%), and non-performing loan (NPL) ratio at 2% (versus the market at 8%).

Customer Base

He added that NMB has continued to provide transactional, savings and investment, and lending solutions to its growing customer segments including Personal Banking, M-SME (micro, small and medium enterprises), Food and Agribusiness, Large Corporates and Government.

Currently, NMB has at least 2.1 million customers, which means that about 40% of all Tanzanians who have a bank account actually hold an account at NMB. The bank also finances a rapidly growing SME segment with over 60,000 customers.

Food and Agribusiness

Food and Agribusiness continues to be a significant part of NMB’s business, providing input finance to hundreds of AMCO’s, financing emerging and commercial farmers, and supporting processors and traders of agricultural commodities (value chain) with their trade finance, foreign exchange and investment needs.

Branch network

NMB network of over 175 branches continues to be the dominant network among banks in Tanzania, fulfilling a key role in empowering local communities, and thus having significant but often forgotten economic impact, especially in those previously unbanked communities and districts. This extensive network coverage covers 95% of districts in Tanzania of which a total of 110 of these branches are in rural areas and 65 are in urban areas.

Alternative channels

In 2015, NMB had over 2.1 million ATM cards activated. The ATM network grew to over 600 ATM machines nationwide, and NMB Mobile was used by over 1,400,000 customers.  In addition the bank offers its customers access to over 80,000 cash-in/cash-out points nationwide through Maxcom agents and other channels.

CSR and stakeholder benefits

NMB continues to make a positive contribution to the society, not just through the provision of affordable banking services for customers but also by sharing our success with communities where we operate. NMB has taken its CSR role seriously and has endeavoured to contribute 1% of the bank’s profit after tax to worthy causes in the communities. In 2015, NMB donated over 7,000 desks worth over TZS 500 Million to over 140 primary and secondary schools and also made a commitment to the government to provide 15,000 desks worth over TZS 1.5 Billion over the period of 5 years.

In 2015, NMB also widened its support to schools and start supporting school libraries, construction of toilets and supporting laboratory tools for secondary schools.

In Health, NMB supported hospital equipment like hospital beds for in-patients and delivery beds for mothers, in 2015, NMB donated over TZS 200 million to 30 hospitals for purchasing of hospital and delivery beds.

The bank has also provided recovery support to victims of disasters like Hai, Kahama and Geita district who were seriously hit by floods.

Speaking at the AGM, NMB MD – Ineke Bussemaker clarified that for the bank to remain relevant to its stakeholders in the long run, and to achieve its vision of becoming the preferred financial service partner in Tanzania, it must also deliver sufficient and sustainable results.

Efficiency

Accordingly, the bank’s key efficiency ratios remained stable or improved in 2015, with the cost to income ratio closing at 57% and the loan to deposit ratio of 71% remaining well below the market average of 81%. Furthermore, the Bank is very well capitalized with a capital adequacy ratio of 20% well above the minimum regulatory requirement.

Record Dividends

On his part, NMB Board Chairman Prof. Joseph Semboja said: “it is a great pleasure for me to report to the shareholders and other stakeholders of the National Microfinance Bank PLC on the financial and operational results of the bank in 2015.I wish to thank NMB  management and  staff for delivering another successful year, and also thank our key stakeholders, shareholders and customers for their support and continued loyalty to NMB “

At this Annual General Meeting, the proposed dividend of TZS 104 per share was agreed upon and approved by shareholders, which translates to a total dividend amount of TZS 52 billion allocated out of 2015 profit; the same amount was paid in the last year.