Top Tanzanian banks increase investment in govt securities

April 28, 2022

Tanzania's top two banks, NMB and CRDB, increased their investments in government securities last year.

According to audited statements published this week for the year ending December 31, 2021, NMB investment in Treasury bonds increased from Tsh1.3 trillion ($562.77 million) in 2020 to Tsh1.74 trillion ($753.24 million) in 2021.

CRDB bought Tsh1.64 trillion ($709.95 million) worth of T-bonds, up from Tsh1.49 trillion ($645.02 million) in 2020.

NMB customer loans increased by 13 percent year-on-year to Tsh4.65 trillion ($2.01 billion) in 2021, against a non-performing loans ratio of four percent. CRDB's customer loans went up 28.3 percent to Tsh5.04 trillion ($2.18 billion), and non-performing loans dropped from 4.4 percent to 3.3 percent.

Overall, CRDB registered a 64 percent increase in profit before tax year-on-year to Tsh387.36 billion ($167.68 million) up to end of December 2021 against Tsh236.17 billion ($102.23 million) in 2020.

NMB gross profit rose by 40 percent to Tsh413.88 billion ($179.16 million) from Tsh295.74 billion ($128.02 million) the previous year.

The banks reflected a year of slow economic recovery and increased money flows after the ravages of Covid-19 through most of 2020.

Both banks also reported increases in customer deposits, with NMB registering a 24 percent rise to Tsh6.5 trillion ($2.81 billion) year-on-year and CRDB's deposits going up 19.5 percent to Tsh6.49 trillion ($2.80 billion).

CRDB was also back on top in terms of assets, at Tsh8.81 trillion ($3.81 billion) by the end of 2021. NMB's total assets rose 23 percent from Tsh7.06 trillion ($3.05 billion) to Tsh8.68 trillion ($3.75 billion).

CRDB’s reported figures for 2020 were a 35 percent improvement on its 2019 pre-tax profit of Tsh175 billion ($75.75 million). The bank has said it is finalising plans to open a new branch in the DRC as part of a regional expansion agenda, which includes an operating branch in Bujumbura.

Although 2021 audited figures for the Bujumbura operation are yet to be made public, it registered a 75 percent profit growth from $2.77 million to $4.85 million in 2020.


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