NMB Bank, one of Tanzania's leading financial institutions, has announced a remarkable 29% increase in its single borrower limit, reaching a historic high, owing to the bank's outstanding performance.
Filbert Mponzi, Chief of Retail Banking at NMB Bank, made this announcement in Dar es Salaam on Thursday, highlighting that the single borrower limit had surged from TZS 325 billion to an impressive TZS 420 billion in the third quarter of this year. This marks the highest single-borrower limit ever issued by a financial institution in the country's history.
Mponzi explained, "As of last September, our capital base has now reached TZS 1.94 trillion, which translates into a single borrower limit of about TZS 420 billion in accordance with the regulations of the Bank of Tanzania (BoT)." BoT regulations permit commercial banks to lend up to 25% of their capital to a single borrower. The single borrower limit figure signifies the maximum legal credit amount the bank can extend to a single borrower.
He added, "We have recorded a robust performance during the first three quarters of this year, and all indicators suggest that we will achieve yet another historic year. Our ambition is to continue growing our asset base, with an overall forecast that our assets will reach the TZS 12 trillion mark by the end of this financial year."
According to the bank's financial results for the third quarter of this year, released recently, NMB Bank demonstrated solid performance, with total assets surging by an impressive 22% to reach TZS 11.53 trillion, compared to TZS 9.46 trillion during the same period last year. NMB Bank remains committed to playing a leading role in accelerating the transition from cash to digital payments as part of its commitment to enhancing financial inclusion.
The bank's profit after tax also exhibited remarkable growth, increasing by 23% to reach TZS 398 billion in the third quarter of this year, compared to TZS 324 billion recorded during a similar period in 2022. These positive financial indicators reflect NMB Bank's unwavering dedication to delivering value and financial solutions to its customers and stakeholders.