In a remarkable financial performance, Mwanga Hakika Bank, one of the leading financial institutions in the region, has announced a substantial surge in net profit for the third quarter of the current fiscal year. The bank's net profit has nearly tripled, showcasing a staggering 160% increase, reaching 2.43 billion Tanzanian Shillings in the three months ending September. This remarkable growth, compared to last year's 935 million Shillings during the same period, is attributed to amplified net interest income and strategic financial management.
The bank, boasting assets totaling more than 187 billion Shillings as of the end of September, has credited its positive financial results to a robust increase in interest income. Specifically, the net interest income saw a notable rise of 27%, reaching 3.61 billion Shillings in Q3 from 2.82 billion Shillings in the corresponding quarter last year.
A significant contributor to this boost in net interest income was the surge in loans issued by the bank, totaling 125 billion Shillings by the end of September, a notable increase from 102 billion Shillings recorded in the second quarter ending June.
Moreover, Mwanga Hakika Bank reported a commendable 35.6% increase in non-interest income, rising to 2.16 billion Shillings from 1.59 billion Shillings. This spike was propelled by foreign currency dealings and translation gains, alongside commissions and fees. Foreign dealings and translation gains climbed to 365 million Shillings, up from 152 million Shillings during the same period last year. Additionally, the bank's commissions and fees witnessed an 18.6% rise, reaching 1.62 billion Shillings from 1.36 billion Shillings in the previous year.
Mwanga Hakika Bank has successfully managed its non-performing loans (NPLs), which currently stand at 1.6%, well below the regulatory threshold of 5.0%. However, it witnessed a slight increase compared to the 1.3% recorded in the second quarter.
A testament to the bank's strong market presence and customer confidence, customer deposits saw a notable uptick of 15.5%, soaring to 126.7 billion Shillings from 109.6 billion Shillings in the preceding quarter.
In a strategic move, the bank exhibited prudent financial management by reducing its operational expenses by 9.2%. Despite the increase in salaries and benefits, which rose to 1.05 billion Shillings from 839 million Shillings, a growth of 25.3%, the bank managed to streamline its overall expenses. This accomplishment was especially noteworthy considering the bank's increased staff count, rising to 117 employees at the end of last month from 108 in the corresponding period last year, while maintaining a consistent number of branches, totaling seven.