Diamond Trust Bank Tanzania Limited (DTB Tanzania), has recorded 13.6 percent pre-tax profit increase for the year ended 31st December 2016 from Tshs 27.3 billion in 2015 to Tshs 31.0 billion in last year
“The Bank’s double digit growth in pre-tax profit in a season that the majority grew in single digit is a testimony to the conservative but efficient banking model of DTB Tanzania. The well-conceived branch expansion drive of opening 20 branches in 8 years has directly resulted in stability of customer deposits and reduction in the cost of funds enabling lower lending rates which could not be matched by peer banks,” Viju Cherian, Country Manager & CEO of the bank said.
As per the unaudited published results, the pre-tax profit for the banking industry increased marginally by around 0.38%
The bank customer deposit base grew by 9 percent from Tshs737 billion to Tshs 800 billion at the end of 2016, compared to a decline of 2.07 percent in the industry.
Total assets of the Bank increased by 9 percent touching Tshs 984 billion in 2016 from Tshs 900 billion achieved in 2015 while the overall banking industry grew by 3 percent.
The total advances to the customer also increased by 5percent during the year 2016, touching a level of Tshs 565 billion from Tshs 536 billion in 2015. The Bank’s prudential credit process has contained the non-performing loans ration to 2.6 percent of the total credit book whereas the industry is presently at an average of 9.5 percent. the total non-performing assets of Tshs 15.5 billion are adequately covered by the total provision of Tshs 23.0 billion in addition to securities charged to the Bank.
Net Interest Income (NII) grew by 29 percent from Tshs 48 billion in 2015 to Tshs 63 billion 2016.The NII was boosted by higher investment in Government Securities which stood at Tshs 201 billion at the end of 2016, compared to Tshs 158 billion in the previous year, an increase of 27 percent.
The Bank’s high standards of service delivery coupled with strategic branch network and products offering covering all demographics are major growth attributes in the years 2016.” Our people are matched by none in terms of timely and efficient response to customers. We continue to invest in technological innovation in the way we interact with our customers either digitally or through conventional methods.” Mr. Cherian added.
The Bank opened two additional branches in Dar es Salaam City during the year 2016, closing the year with 11 branches in Dar es Salaam and 26 branches in Tanzania. The Central Business District (CBD) Branch along Samora-Mirambo street Junction at Diamond Plaza was opened in March 2016 and Mbezi Chini Branch in Kawe Ward, Mbezi Chini neighborhood was opened in October 2016. The focus of the Bank is to continues the expansion drive with at least 4 branches to be opened in the next 12 months. Branches at Uhuru in Kariakoo and Mlimani City Shopping Mall are ongoing projects and will be open for commercial business in the next 3 months.
In recognition of the vast geography of Tanzania and the quest to reach customers beyond the existing branch network, the Banks has embarked on a project to unveil an “Agency Banking” network that increases the Bank’s footprint while taking financial services closer to Tanzanians in both urban and rural areas. DTB Tanzania’s Agency banking is slated for roll out in July this year.
The bank has also made strides by investing in technology and improving the existing core banking system to Flex Cube V 12.0 which is more agile and capable of new technological requirements. The Mobile Banking services “Touch 24/7” has been upgraded and is now available in interactive Apps and USSD platform for non-smart phone users. iBank, the Banks internet Banking service have also been improved in view of enhancing customer experience in the Bank.
DTB Tanzania presently has a network of 26 branches in Tanzania, 11 branched ins Dar es Salaam (Jamaat Street, Masaki, Morocco, Magomeni, Mbezi, Mbagala, Nyerere, Kariakoo, Nelson Mandela Road-near Tabata Junction, Upanga along United Nations Road and CBD Branch at Samora Avenue and Mirambo Street Junction) and Mbezi Chini Branch in Kawe. Others are two branches in Arusha and Mwanza and one each in Dodoma, Kahama, Mbeya, Morogoro< Moshi< Mtwara< Mwanza, Tabora, Tanga and Zanzibar.
DTB Tanzania is part of DTB Group, a pan East African banking group, with over 130 branches across Tanzania, Kenya, Uganda and Burundi. The Bank is also an affiliate of the Aga Khan Fund for Economic Development (AKFED), the economic development arm of the Aga Khan Development Network.
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