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

Senior Management• Mr. Israel Chasosa, Managing Director (Tanzania)• M. Zubery, Country Head of Finance• J. Kimori, Head of Internal AuditSelected Financial TrendsBanc ABC’s quarterly interest and non-interest income havetracked steadily upwards since 2006. Banc ABC has beenprofitable on a quarterly basis since Q3 2007 and the firstthree quarters of 2010 have seen profits increase steadily toTZS 1.2 billion by September 2010, matching the level lastreached eleven quarters earlier in Q4 2007. A TZS 1.7 billionprovision for bad debts reduced net profits to TZS 652 millionin Q4 2010.Banc ABC’s deposits and loans have been growingsince 2006. Deposits grew 4½ times from TZS 27 billion toTZS 123 billion. Loans expanded five times from TZS 18 billionto TZS 98 billion in Q4 2008, after which the loan bookremained quite flat. The share of non-performing loans declinedfrom 14% in Q1 2006 to around 2% in Q1 2009. Thispositive trend seems to have reversed with the rate returningto just over 12% in Q4 2010.The structure of the bank’s shareholders funds hasevolved significantly from Q1 2006, when retained losses accountedfor 40% and paid up share capital for just under 60%.By Q4 2010 retained losses were less than 10% and paid-upshare capital accounted for about 80% of shareholders funds.Banc ABC shored up its capital base by injecting a total TZS12.18 billion in new paid-up share capital, increasing it fromTZS 9.6 billion in 2006 to TZS 21.8 billion in Q3 2008.30 Serengeti Advisers