Dar es Salaam. DCB Commercial Bank Plc has cemented its mid-sized position in the banking sector with a steady growth of its balance sheet and an increase in profits, its financial report shows.
This follows the recent announcement that Tanzania bank is general are raking in historically massive profits.
Commercial bank net profits in Tanzania rose by about Sh400 billion last year to surpass the Sh1 trillion-mark for the first time in Tanzania banking history.
DCB, which is listed on the Dar es Salaam Stock Exchange (DSE), registered a profit before tax of Sh2.25 billion in 2022, according to the recently released financial results.
This was an increase of 112 per cent compared to a profit before tax of Sh1.06 billion for the year 2021.
A close look at the financial results shows that the profit growth emanated from a four per cent rise in interest income and a 45 per cent increase in non-funded income.
Interest income is the interest a bank charges it’s customers, usually for loans.
Non-interested funded income includes bank charges. Tanzania banks will often charge a customer for services, such as a monthly charge for owning an account, or a charge for withdrawing cash, or a transactional charge on customers for transferring their funds to another bank. These are non-interest charges made on the banks customers.
DCB registered Sh10.4 billion in non-funded income in 2022, from Sh7.2 billion in 2021 while the interest income soared to Sh28.61 billion from Sh27.62 billion in 2021.
“The bank grew its non-funded income during the year, focusing on trade financing activities, foreign exchange business, and increased transactional fees due to the enhanced features and increased usage of digital banking platforms,” said DCB Acting Chief Financial Officer (CFO), Siriaki Surumbu.
The balance sheet has grown by 61 per cent over the past five years, financial results show.
Its asset size crossed the Sh200 billion mark to reach Sh214 billion last year from Sh133 billion in 2018.
Financial results further show that the bank registered growth across all the other performance parameters, including in loans, advances and overdrafts and in customer deposits among others.
“During the year under review, the bank celebrated several awards. They include the Consumer Choice Awards Africa to emerge winner in the Most Preferred Bank in Customer Service and the Best Presented Financial Statements Award NBAA, in the mid-sized bank chapter. This was the fifth successive win, said DCB Managing Director Mr Isidori Msaki.
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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
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The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
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