Exim Bank
  • comoros
  • djibouti
  • uganda

EXIM BANK'S Q2/14 PRETAX PROFIT UP
80 %

Pretax

EXIM Bank Group second-quarter pretax profit rose 80 percent to TZS 9.6 billion from the same period last year as per recently published results.

"We are pleased to report good results in the second quarter of the year," said Issa Hamisi, Exim Bank acting Chief Finance Officer & Seniour Finance Manager. "Strong top-line revenue growth reflects the success of the Bank's highly diversified income streams. We continue to improve upon operational efficiency to optimize our customers' satisfaction. Our Bank is continuing to move in the right direction. We are making progress towards fulfilling our ambitions. Our Q2 results show that we have continued with an excellent performance this year," he added.

Net interest income, grew by 36 percent from similar period in 2013 to TZS 14.3 billion. Forex business showed a significant growth during the quarter whereby 33% increase counted in our Q2 performance as compared to previous year. Dividend received in Q2 from our equity investment with NMB Bank and our Comoro Subsidiaries for the year 2013 counted positive in our good results.

Fees and commission income increased by 19 percent from the year-ago quarter, to TZS 6.2 billion, driven by volume growth on Foreign exchange trading activities and trade finance products following implementation of 3-year strategy plan. Income from equity investments increased by 184 percent from the same period last year, to 4 billion, driven by increased dividend incomes received.

"Total Operating expenses were contained and went up by just 21 percent to TZS 16.7 billion attributed to new branches establishment costs and staff benefits in the efforts to widen geographical coverage and strengthen the Bank's foundation. As the result, the cost to income ratio significantly decreased from 64 percent maintained a year-ago quarter to 57 percent," he added.

Customer deposits were maintained at TZS 776 billion from the year-ago quarter with an average CASA deposit (i.e. Current &Saving Account) growth during the quarter by TShs36bio as compared to the Q1 2014 performance.

A well diversified loan portfolio recorded growth at 16% from the same quarter last year to TZS 558 billion likewise Bank's balance sheet grew by 9% to TZS 1.15 Trillion.

"A top priority is still our commitment to strengthen our market position and improve customer satisfaction through operation efficiency. The encouraging trend in customer satisfaction is a sign that we can succeed in reaching out ambitious targets for this year" said the acting Chief Finance Officer.

In the efforts of increasing its competitive position the bank has embarked into innovative retail model that improved customers contact and close coordination of branches under 5 clusters. This has improved services offered to our existing and new esteemed customers.

In the process of streamlining the process for better service delivery to customers, some of operations such as account opening and activation have been centralized. The deployment of "Centralized Operations" aims at moving all back office processes and practices out of the brick and mortal channels to promote efficiency, increase customer satisfaction and turn branches into "showrooms", says Mr. Issa Hamisi.  The bank has engaged services of an International vendor of repute to provide an end to end advisory on setting up a 'state of the art' back office for the Bank.

The bank also continues to show social responsibility during the quarter through participation in the public benefiting events and donations. These among others include donation of mattresses to Mwananyamala hospital, computers to Kilakala secondary and providing shelters to elders through Tushikamane Pamoja Foundation.

Based on the good performance in Q2 and opportunities in the economy, the Bank envisages better performance in the coming quarters as sales campaigns intensified and operations efficiency strengthened

Exim Bank Tanzania Acting Chief Finance Officer / Senior Finance Manager Issa Hamisi (centre) speaks about the bank’s performance during the Second Quarter of 2014 in Dar es Salaam yesterday. He is flanked by Chief Internal Auditor George Binde (left) and Manager Research and Business Analysis Joseph Mrawa. Photo by our correspondent.

 

Published: Saturday 12th August, 2014