Tanzania Banking Survey 2011 - Tanzania Chamber of Commerce ...

Tanzania’sbanking sectortrendsTanzania’s banking sector has grown significantly betweenJanuary 2006 and December 2010, starting with the numberof reporting banks increasing from 33 to 41.The banking sector’s total assets have expanded 2.8 timesfrom TZS 5.5 trillion to TZS 15.3 trillion. Deposits also grew2.8 times from TZS 4.4 trillion to TZS 12.4 trillion. Loansexpanded almost 3½ times to 5.9 trillion from TZS 1.7 trillionwhile investments in government securities doubled from TZS1.2 trillion in 2006 to 2.37 trillion in 2010.The banking sector’s pool of shareholders funds (capital)tripled from TZS 476 billion to TZS 1.7 trillion. Seven newentrants injected TZS 43 billion of capital during the period.Two existing banks, which had not been publishing financialstatements in 2006, accounted for an additional TZS 40 billionof capital. However collectively, these nine ‘new’ banksaccounted for just 4.8% of the total pool of shareholders fundsby December 2010.Tanzania’s banking sector - comparing two quartersMarch 31, 2006 December 31, 2010Indicator TZS (million) USD (million) TZS (million) USD (million) % change1. Assets 5,517,593 4,507 15,376,742 10,461 1792. Deposits 4,452,116 3,637 12,476,064 8,488 1803. Loans 1,758,578 1,436 5,924,008 4,030 2374. Government securities 1,257,903 1,027 2,378,963 1,619 895. Shareholders’ funds 476,502 389 1,708,188 1,162 2586. Total Revenue* 119,910 98 328,042 223 1747. Net Profit* 42,023 34 28,950 20 (31)8. Bad debt provision* 3,427 3 51,847 35 14139. Number of Employees 5,828 11,208 9210. Number of (reporting) banks 33 41 24Exchange rate TZS/USD (Weighted Average Rate) 1,224.25 1,469.85Source: Serengeti Advisers analysis of bank financial statements. Exchange rate data is from the Bank of Tanzania website (www bot-tz.org). * Figure is for the relevant quarter onlyThe industry’s quarterly revenues havegrown from TZS 119 billion in Q1 2006 toTZS 328 billion in Q4 2010.Tanzania Banking Survey 20115