Azania Bank has reported a 15% increase in net profit during the first quarter of this year, primarily driven by a rise in net interest income. The bank's financial statement revealed that net profit grew to TZS 6.92 billion in the three months ending March, up from TZS 6.03 billion during the same period last year.
Belonging to the group of elite banks with assets exceeding TZS 1.0 trillion, Azania Bank cited robust growth in interest income as the primary factor behind its positive results. The bank's assets reached TZS 1.21 trillion by the end of March. The report showed that net interest income rose by 17%, reaching TZS 17.31 billion in the first quarter, compared to TZS 14.74 billion in the same quarter of the previous year. A significant factor contributing to the increase in net interest income was the bank's loan book, which extended TZS 845.64 billion in loans by the end of March, compared to TZS 818.01 billion in December. Moreover, non-interest income experienced a more than threefold increase to TZS 6.02 billion, primarily due to commissions and fees. Commissions and fees generated TZS 2.67 billion, up from TZS 1.15 billion, while foreign exchange contributed TZS 2.37 billion, up from TZS 708 million. Non-performing loans (NPLs) decreased slightly to 21.05% from 26.84%, remaining well above the regulatory threshold of 5.0%. As a result, the bank allocated TZS 2.2 billion to cover potential losses on loans and advances. Azania Bank also saw an 11.5% growth in customer deposits, reaching TZS 597.47 billion, up from TZS 535.61 billion. Operational expenses experienced a slight decrease of 1.3% to TZS 14.50 billion, despite an increase in staff numbers from 563 to 570, while maintaining the same number of branches. Currently, Azania operates 24 branches, eight service centers, two collection centers, and seven standalone bureaus de change. The bank provides services through digital banking platforms, such as Visa cards, Azania Wakala, internet banking, and mobile apps. The Bank has over 20 and more branches all over the country. The Bank has business loans, consumer loans, and mortgage facilities; it further operates in local and international funds transfers through TISS, Telegraphic Transfers, Western Union, Africash, and Money Gram.