Tanzania's Financial Giants

Tanzania banking sector has been thriving continuously for the past few years, 6 being among the largest banks in asset value in the East Africa Community.

Making a combined net profit of 1.48 Trillion Tsh in the year 2023, the Top 10 most profitable banks in Tanzania have made approximately 6 times more than what was made about 5 years ago by all banks (250 billion Tsh). (almost a quarter of the combined profits of only 2 banks in 2023)

The same Top 10 banks, making a combined profit of 1.46 Trillion in 2022, 1.07 Trillion in 2021, have shown promising growth over the years.

And as Mrs. Ruth Zaipuna the CEO of NMB quoted “As the economy prospers, the bank system thrives”

This great achievement of the increase of net profits has been very astonishing to many.

Despite, the great achievement CRDB Bank Plc and NMB Bank Plc have seen to have massive net profits compared to the rest.....

Why do they perform so well?

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THE TWO-HORSE RACE

Tanzania’s Largest banks, NMB and CRDB made records in profits in 2023, nearing 1 Trillion Tsh combined from the 783.1 Billion Tsh recorded in 2022. They continue to stretch the gap over the rest in the sector.

NMB’s profits alone (542 Billion Tsh) higher than half a Trillion, are greater than the combined profits of the 3rd position bank to the 10th

This is how the banks performed in 2023:

NET PROFIT:

NMB: 542 Billion Tsh (26%?? YoY)

CRDB: 423 Billion Tsh (21%?? YoY)

ASSET VALUE:

NMB: 12.2 Trillion (19%?? )

CRDB: 13.2 Trillion (14%?? )

?NON – PERFORMING LOANS (NPLs):

NMB: 3.2%??

CRDB: -2.8%??

?DEPOSITS:

CRDB: 8.9 trillion Tsh (8%?? YoY)

NMB: 8.4 Trillion Tsh? (11%?? YoY)

Today, two banks alone are making close to 1 trillion Tsh with NMB Bank having crossed half a trillion mark. (mentioned in one of Mpoki Thomson 's posts)

But some financial analysts, believe that the two-horse race is not good for the economy and that the dominance of these two banks must be limited.

An analyst form Dar es Salaam proposed joint bank initiatives that will help promote a balanced and thriving financial sector. Ideally to bridge the gap between the dominant banks and the rest.

2024 NMB BANK PERFORMANCE

NMB has shown remarkable and substantial growth over the years in the banking sector.

In the ceremony at the Presidential Palace on 14th June 2024, celebrating the dividends given to the government by state-owned and business enterprises, Ms. Ruth Zaipuna was confident to express the fast development of NMB Bank Plc as of 2024

It has been noted that various foreign investors have been investing in NMB Banks specifically the "Jamii Bond" and continue to do so because they are lead by the continuous development of the bank.

This made NMB Bank to become the first bank ever in East Africa to be listed in the London stock exchange market.

Cumulatively in 2024 NMB has been able to:

1) Fund loans of up to 22Trillion Tsh (17%?? )

2) Deposits of 38.6 Trillion Tsh from 32.6 Trillion Tsh (18%?? )

3) Increase share price from only 2,000 Tsh (Dec 2021) to currently 5,200 Tsh (doubling in 2 years)

4) Recognized as the Best SME Bank in Tanzania 2024 by Global Finance Magazine

5) Accumulating about 181 Billion Tsh for its shareholders and out of that, 57 Billion Tsh was given to the United Republic of Tanzania government.

All this making NMB Bank among the Top Banks in East Africa.

What do you think CRDB Bank Plc and other banks have to say about this?

??Strategically grow with data!