PBZ now Tanzania’s seventh-largest bank

Zanzibar. The People’s Bank of Zanzibar (PBZ) is now the seventh largest lender in Tanzania, thanks to a Sh500 billion increase in its asset base over the past year, according to the bank’s unaudited financial statements.

The bank reported a 27.77 per cent rise in net profit, reaching Sh65.53 billion in 2024, while total assets surged to Sh2.5 trillion—an increase of 22 percent from Sh2 trillion recorded at the end of December 2023.

An analysis of PBZ’s asset growth attributes the expansion to significant improvements in loans, advances, overdrafts, other assets and interbank loans.

The lender demonstrated robust performance across various financial parameters, with double-digit growth rates in both funded and non-funded income streams.

With its latest net profit figures, PBZ has cemented its place among Tanzania’s ten most profitable banks, ranking eighth in a competitive market comprising 33 commercial banks. These results are reflected in the unaudited financial statements for the country’s banking sector in 2024.

PBZ’s funded income rose by 18 per cent to Sh118.56 billion, up from Sh100.52 billion the previous year, while non-funded income increased by 35 per cent, totalling Sh51.72 billion from Sh38.33 billion in 2023.

PBZ’s Managing Director, Mr Arafat Ally Haji, attributed the bank’s strong performance to a combination of factors, including digital transformation, business-friendly policies, financial inclusion, expansion, product diversification and a solid internal culture.

“The successful launch of an enhanced mobile banking app, along with improvements in internet banking and alternative service channels, has significantly increased accessibility,” said Mr Haji. “These innovations have facilitated seamless transactions, boosting customer engagement and driving deposit mobilisation.”

PBZ has prioritised expanding its presence, particularly in underserved areas. While maintaining a strong foothold in Zanzibar, the bank has now extended operations to mainland Tanzania, opening new branches in Morogoro, Mbeya, Mwanza and Kinyasini in Unguja.

This expansion has been reinforced by a growing agency banking network, now comprising 2,565 agents, enabling PBZ to serve customers beyond the reach of traditional brick-and-mortar branches.

The bank has also maintained a healthy loan book, with Non-Performing Loans (NPLs) accounting for just 2.03 percent of total gross loans, reflecting sound credit risk management.

PBZ’s diversified portfolio, which includes bancassurance, insurance premium financing and tailored financial products, has further solidified its position, attracting new customers while complementing its existing credit services.

“These new services not only add value to our customers but also enhance our revenue streams,” Mr Haji noted. He commended the leadership of President Samia Suluhu Hassan and Zanzibar’s President Hussein Ally Mwinyi for fostering a stable economic environment conducive to financial sector growth.

“Their visionary leadership and commitment to strengthening the financial sector have been instrumental in creating an enabling environment for PBZ’s continued expansion,” he said.