Absa Bank Tanzania has announced a remarkable financial performance for the fiscal year 2023, marking a year of unparalleled growth and success since its establishment in the country.
Despite the challenges posed by the global economic landscape, Absa Bank Tanzania has demonstrated resilience, adaptability, and an unwavering commitment to its customers, stakeholders, and the community at large. The bank seized the opportunities presented in the market to deliver exceptional performance.
In 2023, Absa Bank Tanzania achieved record-breaking financial results, reflecting robust growth across key performance indicators. Profit Before Tax (PBT) surged to an all-time high of TZS 75 billion, marking a staggering 132% increase from the previous year, contributing to an impressive Return on Equity (ROE) of 32% in 2023. Overall revenue recorded an excellent annual growth of 30%, driven by a 21% growth in Net Interest Income (NII) and a 41% increase in Non-Interest Income (NIR). Cost registered a very modest increase of 3% year-on-year, well below inflation, leading to a significant improvement in the Cost to Income Ratio (CIR) to 53% in 2023, well within the regulatory threshold.
The bank's total assets surged to an all-time high of TZS 1.42 trillion, representing a 19% growth from the prior year. This was accompanied by exceptional growth in customer deposits, which increased by 37% year-on-year to TZS 1.1 trillion. Additionally, customer loans and advances saw an impressive increase of 25% from the previous year, reaching TZS 784 billion for the first time. The ratio of Non-Performing Loans (NPL) reduced to 4.5%, remaining well within the regulatory threshold.
Commenting on the results, Bernard Tesha, the Bank’s Acting CFO, stated, "The significant growth in customer deposits reflects the trust from both existing and new customers in the bank. The bank continues to maintain a strong capital position and funding base, operating well above regulatory and internal requirements. Our prudent risk management practices, strategic investments, and unwavering focus on customer-centric solutions have positioned us as a preferred banking partner in the financial services industry."
Obedi Laiser, the Bank’s CEO and MD, emphasized, "Our outstanding financial performance in 2023 underscores our steadfast dedication to excellence, innovation, and sustainable growth. We have and will continue to leverage technological advancements, expand our product and service offerings, and foster strategic partnerships to better serve the evolving needs of our diverse customer base."
Furthermore, Laiser emphasized the bank’s commitment to corporate social responsibility and community engagement, highlighting ongoing support for various initiatives aimed at driving positive change and fostering financial literacy.
As Absa Bank Tanzania looks ahead, it remains resolutely focused on delivering value, fostering trust, and driving inclusive prosperity for all stakeholders. The bank expressed deep gratitude for the unwavering support of its customers, employees, regulators, policymakers, and shareholders, which have been instrumental in its success.
Absa Bank Tanzania Limited is one of Tanzania’s leading financial institutions offering an integrated set of products and services across Corporate and Investment Banking, Business Banking with solutions for SMEs, and Retail Banking. With a 21-year legacy in Tanzania, Absa is committed to finding local solutions to uniquely local challenges, focused on bringing possibility to life.
Absa Bank Tanzania is part of Absa Group Limited, one of Africa’s largest diversified financial services groups. Absa Group employs approximately 40,000 professionals across several African countries, with a strong presence in South Africa and other key African markets.