People’s Bank of Zanzibar net profit doubles

Dar es Salaam, Tanzania: 

Yet another Tanzania Bank has reported huge profits in 2022.

The People’s Bank of Zanzibar Limited (PBZ) has had its net profit doubled last year owing to the lender steady growth plan, its financial report shows.

PBZ’s head of Finance Anwar Saleh told news outlets that the impressive performance puts PBZ on the 6th position among the most profitable commercial banks in Tanzania.

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.  

Anwar Saleh explains where this profit has come form saying; “During the year 2022, we focused on efficiency in implementing the bank’s strategies. As a result, customers’ deposits rose by 40 percent while the loan and financing portfolio increased by 34 per cent,” he said.  So essentially it was the customers who have accounts in the bank that helped fund this increase in profits.

He added that the bank also registered an improvement in the quality of bank assets resulting in remarkable growth in profit.

Both funded (interest) and non-funded (non-interest) income streams rose significantly.

While the net interest income reached Sh72.05 billion in 2022 from Sh57.83 billion in 2021, the non-interest income surged to Sh33.2 billion from Sh25.48 billion.

PBZ officially joined the group of first-tier lenders in Tanzania in 2022 after its assets rose by 41 percent to reach Sh1.42 trillion from Sh996.37 billion in 2021.

Its ratio of Non-Performing Loans (NPLs) to total gross loans stood at 2.77 percent by December 2022.