The amount translates into an annual net profit growth of 46.8 percent compared with the Sh292.14 billion in net profit that was registered during the preceding year.
Speaking yesterday, NMB’s chief executive officer, Ms Ruth Zaipuna, said the performance was the outcome of several factors, including a business-friendly environment that is supported by the government’s policies.
She said the 2022 financial outturn also reflects the strong performance momentum NMB has had in the last four years and the impact of its service excellence and corporate giving agenda on people’s lives and productive activities.
“That is an increase of more than Sh130 billion year-on-year, but 2022 profitability becomes monumentally significant when compared to the Sh98 billion net profit that NMB made in 2018,” she said.
“Strong client activity, investments in digital solutions, meticulous execution of our strategy, and high staff morale and productivity have driven the bank’s strong performance,” said Ms Zaipuna.
Reflective of efforts to spur lending, the bank’s total assets also reached the ten-trillion mark at Sh10.2 trillion, up from Sh9.45 trillion last year.
According to the bank, NMB also reduced funds allocated for credit impairment by 33 percent, to Sh76 billion, while bad loans were kept within the five percent regulatory benchmark following a 0.3 percentage point slide in the non-performing loans (NPLs) ratio to 3.3 percent.
NMB’s chief finance officer, Mr Juma Kimori, said the bank also lent over Sh6 trillion last year, loans that mostly benefited the corporate sector and individual borrowers and financed strategic sectors such as farming and general enterprises (SMEs).
“Our balance sheet remains robust, and the shareholders’ funds, which have now reached Sh1.6 trillion, mean a lot in terms of maintaining the superb performance we have had in recent years, boosting lending, and sustaining profitability,” said Mr Kimori.
On the back of mouthwatering profit results, NMB has revealed it has set aside Sh6.2 billion towards its social impact investment programs.
The amount set aside is intended to continue driving positive and lasting impact for millions of Tanzanians through investment in key areas of our corporate social responsibility, including health, education, financial literacy, the environment, and the overall sustainability agenda.
“The bank’s medium- and long-term plan is to ensure sustainable value creation and shared prosperity with its stakeholders,” the lender stated in part.
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Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
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