banking survey cover 2012 - Tanzania Chamber of Commerce ...

However, they lost market share in the number of branches
from 54% to 42%, and employees from 50% to 38%, mostly to
the smaller 35 banks.
The smaller banks also expanded their market share of the
industry’s total capital (from 19% to 26%) and loans (from
20% to 23%).
Selected industry ratios
Tanzania’s banking sector performed better in 2011
compared to 2010. Profit margins increased by two
percentage points from 19% to 21% as a result of the increase
in interest income.
Banks did more lending in 2011 as shown by the loan-todeposit
ratio increasing from 47% to 52%. Conversely, the
share of deposits invested in government securities fell
from 19% to 14%. While this was a sizeable reduction of 5%,
it may not reflect an overall strategic shift in the industry.
Closer analysis shows that by pulling out some TZS 269
billion, NMB alone accounted for 84% of the TZS 321 billion
decline in the banking sector’s holdings of government
securities.
The ratio of total shareholder funds to assets remained the
same at 11% because both grew by 17% during the year.
Even as lending expanded, the industry overall seems to
have done a better job credit risk management. The bad debt
provisions as a percentage of total lending fell from 0.9% on
December 31, 2010 to 0.4% on December 31, 2011.
Selected Industry Ratios
December 31, 2010 December 31, 2011
Loans/deposits 47% 52%
Govt. securities/total deposits 19% 14%
Capital/total assets (capital adequacy) 11% 11%
Bad debt provisions/total loans* 0.9% 0.4%
Net profit/total revenue (for the year) 19% 21%
* On December 31
I CAN WITHDRAW AND DEPOSIT
CASH SAFELY AT ANY KCB BANK BRANCH
IN EASTERN AFRICA
AND MY ACCOUNT WILL BE DEBITED AND CREDITED INSTANTLY.
Visit your nearest KCB bank branch for more information
TANZANIA KENYA UGANDA SOUTH SUDAN RWANDA BURUNDI
8 Serengeti Advisers