The National Microfinance Bank Plc. (“NMB”) has posted a 4 percent increase in net profit for the three months ending March 31, 2017.
The bank’s profit after tax (PAT) for the period under review grew to Tshs 40.9 billion from Tshs 39.3 billion recorded for the same period in 2016.
NMB Managing Director - Ineke Bussemaker attributed the good start to the year to improved operating income and increased recoveries of previously non-performing loans.
Ms. Bussemaker said that total operating income rose by 4.6 percent from Tshs 56.1 billion recorded at the end of the first quarter in 2016 to Tshs 58.7 billion in 2017. This growth was driven by an increase in both the net interest income as well as the foreign exchange revenue which increased by 41percent from Tshs 3.5 billion in the previous year to Tshs 4.9 billion in 2017.
“Net interest income for the first quarter of 2017 was Tshs 115.9 billion, a 9.4percent increase from Tshs 106.0 billion for the first quarter of 2016 and a 0.9percent increase compared to Tshs 114.9 billion recorded in the last quarter of 2016,” Said Ms Bussemaker
The banks financials also indicates that Non-interest revenue (NIR) increased from what was recorded in the same period in 2016 as well as the previous quarter. The bank’s NIR rose by 5.3percent from Tshs 39.4 billion in the first quarter of 2016 to Tshs41.5 billion in the first quarter of 2017 and by 4percent from Tshs 39.9 billion recorded in the 4th quarter of 2016.
Customer deposits only grew by 0.9percrnt from Tshs 3.71 trillion in the last quarter of 2016 to Tshs 3.75 trillion in 2017.
“To grow the customer base and subsequently the deposit base, the bank is deploying more agents i.e. NMB Wakala across the country. The goal is to have a total of 4,500 agents by the end of the year.” Said Ms Bussemaker
The ongoing market-wide liquidity shortage has forced the bank to prudently slow down on the lending. Loans and advances extended to customers in the quarter decreased by 1.2percent to Tshs 2.76 trillion from Tshs 2.79 trillion recorded in the previous quarter. Our loan to deposit ratio remains healthy at 74.6percent.
Our loan recovery efforts are reflected by the Non-Performing Loans (NPL) ratio which has decreased to 4.6percent from 4.8percent which was recorded in the previous quarter.
“This is a good start to the year. The management team is committed to deliver good returns to our shareholders for the year 2017,” Ms. Bussemaker added.
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