The NMB Bank board on Friday declared a 96.7bn/- dividend for the bank’s equity shareholders being a 41 percent increase as compared to 68.5bn/- issued by the bank last year promising to continue creating a shared value for the bank’s customers and shareholders.
The bank after recording a strong performance of 290bn/- profit after tax being a 41 percent increase as compared to the preceding year will offer 193/- per share to its equity shareholders that will be paid on or about June 15, 2022.
The bank has paid a total of 213bn/- to the bank’s equity shareholders in the past three years.
The NMB Bank Board Chairman Dr. Edwin Mhede while briefing journalists in Dar es Salaam shortly after the closing bank’s AnnualGeneral Meeting in Dar es Salaam said the Dar es Salaam Stock Exchange (DSE) listed bank is committed to continue being the market leader in the banking sector.
Dr. Mhede said 2021 was another year of strong performances for NMB Bank Plc thanks to the bank’s effective strategy, optimal leadership and well engaged and committed employee base.
“2021 was our third consecutive year of solid income and profitability growth. Abeit a challenging global operating landscape, we have continued to deliver superior and consistent returns for our shareholders,” he said.
He said the board is pleased with the sustainable growth and momentum in the bank’s underlying business which have supported the bank’s ambition of being a catalyst for broader socio-economic change.
“The board is confident with the progress made along the bank’s strategic journey and believes that the bank is well-positioned to deliver on its broader strategic ambitions, given the robust financial performance along with strong capital and liquidity levels,” he added.
Dr. Mhede noted that the bank’s performance is a testament to the strength of leadership team supported by a dedicated Executive Committee who remained focused on ensuring disciplined execution of the bank’s strategy.
“The board believes that the bank is well positioned to continue delivering on its strategy backed by our strong capital levels along with the robust and sustained strong performance momentum,” he said.
He noted that the bank’s commitment to being a catalyst for sustainable economic development remains a key priority in the bank’s strategy adding that bank last year continued to re-affirm its commitment by supporting key social impact programs in sectors that include education, health, agriculture and environment among others.
“We recognize that our ability to create and preserve sustainable value for our stakeholders depends on our ability to positively impact on our environment, societies and communities in which we operate to enable them strive. We remain committed to playing a leadership role in fostering sustainable development for our stakeholders,” he said.
Dr. Mhede noted that through disciplined execution of the bank’s key strategic pillars and optimized investments in technology, NMB Bank is committed to remaining the market leader in the banking sector.
“We are always exploring available opportunities for further growth and expansion within our markets and beyond our borders and regularly access the opportunities to determine the best-fit in line with our strategic ambitions. We are confident that the bank will continue to withstand the challenges that may arise and remain committed to provide excellent services by providing products and services that address customers’ needs,” he added
On her part the NMB Chief Executive Officer (CEO) Ruth Zaipuna said the bank last year leveraged on strong fundamentals to accelerate its growth and capital position with a strong balance sheet growth and total revenue performance that helped to increase profitability.
“During 2021, our customer deposits grew by 25 percent to 6.6trn/- with strong growth across all our businesses. We maintained good liquidity and our capital base remained strong with Tier I Capital Ratio at23.3 percent and Total Capital Ratio at 24.6 per cent,” she said.
Zaipuna noted that the bank’s total income also increased by 18 per cent to 982bn/- in 2021 driven by the bank’s cost efficiency programs with the cost-to-income ratio further increasing to 46 per cent.
“We delivered profit before tax of 414bn/- being a 40 percent increase as compared to the previous year. We recorded a profit after tax of 290bn/- being a 41 percent increase cementing our market leadership position,” she added.
Zaipuna said the bank’s ambitious strategy of placing customers at the heart of its operations continued to bear fruits after the bank’s customer base grew to over five million accounts with continued strong momentum across the bank’s businesses.
“To enhance overall customer experience, the bank focused on enabling its customers digitally by leveraging on its strong digital capabilities to enhance customer growth by delivering customized offerings, driving further efficiency gains and widening access to affordable and reliable banking services,” Zaipuna said.
Commenting on the bank’s performance forecast for this year, Zaipuna said the bank’s strong performance in Quarter 1, 2022 of the bank’s medium term plan affirms the bank’s direction to record good financial performance this year.
“I assure you that will be in position to achieve our targets this year if all other factors remain constant. During the first Quarter this year, we have already recorded a profit after tax of 101bn/- so far. This is a very good indicator and we shall continue implementing our strategies to achieve our objective,’ she added.
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