Exim Bank hits Tzs 20 billion profit mark

Exim Bank Tanzania Chief Finance Officer Mr. Selemani Ponda addresses a press conference to announce the bank’s financial performance for the year ended December 2013 in Dar es Salaam yesterday. The bank’s net profit increased by 21 per cent, giving them 20 Billion mark. Looking on is Assistant Marketing Manager Violet Bikoche (left), Head  of Risk and Compliance Mr. David Lusala (Second Left), Head of Treasury George Shumbusho (Second right) and Senior Finance Manager Issa Hamisi (Right). (Photo by our correspondent).

Exim Bank Tanzania Chief Finance Officer Mr. Selemani Ponda addresses a press conference to announce the bank’s financial performance for the year ended December 2013 in Dar es Salaam yesterday. The bank’s net profit increased by 21 per cent, giving them 20 Billion mark. Looking on is Head  of Risk and Compliance Mr. David Lusala (Left), Head of Treasury George Shumbusho (Third left) and Senior Finance Manager Issa Hamisi (Right).

Exim Bank Tanzania Head of Risk and Compliance Mr. David Lusala (Left) addresses a press conference to announce the bank’s financial performance for the year ended December 2013 in Dar es Salaam yesterday. The bank’s net profit increased by 21 per cent, giving them 20 Billion mark. Looking on is the bank’s Chief Finance Officer Mr. Selemani Ponda (Photo by our correspondent).

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EXIM Bank Group, with operations in Tanzania and subsidiaries-Comoros and Djibouti has hit profit mark of TZS 20 billion as per recently signed audited results for 2013. This reflects 21% increase from TZS 16.5 billion reported last year.

The Bank’s balance sheet grew by 18% from TZS 967 billion to cross a 1Trillion mark of TZS 1.14 Trillion, the fifth largest in Tanzania. Customer deposits grew modestly by 11% from TZS 723 billion to TZS 804 billion following a strategic decision to focus on low cost deposits. 

Loan and advances portfolio recorded a growth of 23% from TZS 455 billion to TZS 559 billion, with disbursements well diversified to all sectors of the economy. Further, increase in value of investments available for sale and business profit resulted to a significant growth of the shareholders’ fund by 43% from TZS 109.4 billion to TZS 157 billion.

The Exim Bank CFO, Mr. Selemani Ponda said that the impressive results and the on-going performance improvement demonstrated further potential growth of the Bank. “Last year we aggressively implemented growth strategies through mobilization of low cost deposits and operational efficiency that ensured customer satisfaction”, said the CFO.

He added, “As a result of these strategies, fee-based income recorded a significant growth of 33% from TZS 22.8 billion last year to TZS 30.4 billion.”.The International Business demonstrated marked improvement with a strong performance of 26% pre-tax profit growth year on year of Exim Bank Comoros to TZS 3 billion, thus contributing 15% to the Group profit. The other subsidiary, Exim Bank Djibouti which was opened late 2011 showed improved business performance,  and expects to breakeven in 2014.

“It's further heartening to mention that post a very healthy performance by Exim Bank Comoros during the year 2013, the Subsidiary declared a dividend equivalent of TZS 2 billion to be received by the parent Exim Bank Tanzania during the current year 2014,” stated Mr. Selemani. 

During the year, net interest income grew by 1% from TZS45 billion to TZS 45.4 billion. Foreign exchange income posted a significant growth at 73% from TZS 4 billion to TZS 6.9 billion while other fees and commission recorded an increase of 24% from TZS 17.7 billion to TZS 22 billion. “We are excited with this trend in our performance reflecting growth in all our business segments. Our total operating income increased by 12% from TZS 67.7 billion to TZS 75.8 billion,” said the CFO, Mr. Selemani Ponda.

“Total Operating expenses also went up by 17.8% from TZS 45.5 billion to TZS 53.6 billion attributed to new branches establishment costs and staff benefits in the efforts to widen geographical coverage and strengthen the Bank’s foundation. However, the cost to income ratio maintained at same level @ 73%” he added.

As the result of recovery efforts and continued monitoring, the quality of the loan book significant improved during the year, where gross Non-performing assets to total gross loan ratio dropped from 14% to 9%. With a good profit posted during the year, the Return on equity (ROI) improved by 120 basis points from 15.21% to 16.41%.

As it aspires to offer international standards banking services, the Bank scooped overall winner of top customer focused banks in Tanzania out of about 52 banks operating in Tanzania. Further, the training centre-“Exim Academy” got ISO certification in an endeavor to manage talents as well as part of staff retention strategy.   

With opportunities in the economy, the Bank envisages great growth potentials in the future. In the recent 3-year strategic revalidation process carried out, the Bank will focus on continuous customer service improvements through pre-eminent payments and transactions banking in order to remain a preferred Bank for businesses.

In conclusion the CFO said “The plan for 2014 is to continue streamlining operations efficiency by centralization of back office and automation solutions through alternative channels”.