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

• Abdul Bandawe, Head of IT• Waseem Arain, Head of Corporate Banking• Jacqueline Woiso, Head of Transaction Banking• Godfrey Utouh, Head of Internal Audit• Sammy Lwendo, Acting Treasurer• Johnson Mshana, Communications Director• Ambrose Nshala, Head of Corporate AffairsSelected Financial TrendsBank M’s income has been trending upwards from the outset.Net interest income has increased from less than TZS150 million to over 2.5 billion in three years. Non-interestincome has tracked the same growth pattern – from TZS 75million to TZS 1.9 billion in Q3 2010, before dropping slightlyto TZS 1.7 billion in Q4 2010. After net losses during the firstsix quarters of operation, Bank M’s net profit has remained inpositive territory from Q1 2009 to reach about TZS 1.5 billionin Q3 2010. It dropped to TZS 261 million in Q4 2010 due to aTZS 1.34 billion income tax provision.Bank M started with just TZS 8.9 billion in depositsbut this has grown to TZS 152 billion by Q4 2010. Loans havealso grown steadily from TZS 1.4 billion to TZS 118 billionduring the same period. After being reported at a flat rate of0.0%, the rate of non-performing loans increased in 2010 toreach 5% in Q3 2010, before dropping to 3% in Q4 2010.Bank M’s early losses ate into the paid-up share capitalto the point where it represented less than 80% of capitalfor all of 2008. The balance of more than 20% was in accumulatedlosses. Since Q1 2008, TZS 8.251 billion in new sharecapital has been injected by shareholders. Accumulated losseshave declined as quarterly profits grew and increased thetotal volume of shareholders funds.32 Serengeti Advisers