KCB Bank Tanzania has grown its assets value to over Tanzania Shillings One Trillion, a 105 per cent increase within five years, making the bank one of the big lenders in Tanzania’s banking sector.
The increase was mainly driven by growth in customer deposits, which grew by over 103 per cent in five years (2017/22), while Profit before tax (PBT) grew by 182 per cent in the same period.
Speaking during the press conference to announce bank’s performance for the third quarter, the Managing Director Cosmas Kimario said the achievement is a result of strong strategies laid by the bank as well as improvement of the country’s business and economic environment.
He explained that the banking sector has started gaining momentum from the adverse effects of Covid-19 that hit the globe in 2019.
“Most businesses laid down intermediate strategies to revive their activities and they have started bearing fruits. This has helped us to earn strong asset base while serving our clients better,” he said.
Deploying digital technology in its operations was cited as another key driver for the growth whereby the bank has focused on strengthening service delivery through alternative channels as opposed to branch network alone.
“Digital services like Internet banking, Mobile banking and Point of Sale (POS) have increased efficiency in service delivery to our customers. Currently, most transactions are done out of the banking halls offering more convenience to customers,” he said.
Kimario also cited the improvement of the country’s economy, a result of stable and sound economic policies put in place by the sixth phase government and the Bank of Tanzania, as another contributor to the growth.
He also mentioned the Bank’s continued investment in human capital as a key factor to the growth. “We have continued to invest in human resources to speed up efficiency and were able to cut down operational costs to 49 percent from 72 percent within five years,”
The Board Chairman for KCB Bank, John Ulanga explained his confidence to the management saying that the bank has shown steady growth since its inception in 1997.
“We are currently implementing our expansion plan to reach more Tanzanians across the country. We have a strategy to ensure organic expansion by opening five new branches in different regions with business potential,” he said.
He added that the bank is also looking for acquisition opportunities to strengthen its business reach.