In a stellar financial performance, NMB Bank, one of the nation's leading financial institutions, reported a remarkable 23% surge in pre-tax profit for the year ending September. This achievement was attributed to the bank's disciplined execution of its strategic initiatives, marking a significant milestone as profits crossed the half-a-trillion shillings mark.
The Chief Executive Officer of NMB Bank, Ruth Zaipuna, expressed her delight in the bank's consistent delivery of strong financial results, emphasizing the trust exhibited by stakeholders and reaffirming the bank's mission to catalyze overall socio-economic development in the country. She attributed the bank's robust performance to a stable and supportive operating environment.
On a net profit basis, the bank witnessed a 22% increase, recording profits of 398 billion shillings, compared to 324 billion shillings in the same period last year. Zaipuna expressed optimism about the future and reiterated the bank's commitment to further support the communities it serves.
NMB Bank's strong revenue performance was highlighted, with net interest income surging by 20% to 692 billion shillings, driven primarily by increased lending activities in both retail and wholesale segments. Additionally, non-funded income rose to 334 billion shillings, reflecting positive outcomes from the bank's investments in innovative digital financial solutions.
The bank's balance sheet exhibited steady growth, crossing the impressive 11.57 trillion shillings mark at the end of Q3. This growth was attributed to substantial increases in loans and advances as well as investments in government securities. Loans and advances grew by 25% year on year, closing the quarter at 7.0 trillion shillings, while customer deposits increased by 15% to the 8.2 trillion shillings mark.
Zaipuna emphasized the bank's efficiency, citing a reduced cost-to-income ratio (CIR) of 38% as of September, down from 41% in the same period last year, well within the regulatory threshold of 55%. She attributed this achievement to disciplined cost optimization initiatives while accelerating income growth momentum.
NMB Bank also demonstrated improved loan portfolio quality, maintaining non-performing loans at a consistent 3.5%, well within the 5% regulatory benchmark. The bank's robust performance propelled it to become the largest listed financial institution in the East African region, achieving a market capitalization of 2.3 trillion shillings.
During the third quarter, NMB Bank experienced significant growth within the Dar es Salaam Stock Exchange (DSE), with its value soaring by an impressive 32.2%. This remarkable achievement made NMB's stock the top gainer of the quarter, solidifying its position as a leading force in the financial sector.