[2007-04-03]  Dar's Largest Bank Profits Soar
The National Microfinance Bank Limited (NMB) expects to increase the amount of dividends to its shareholders after recording an impressive increase in profits last year.

Last week, the NMB announced a record net profit of Tsh35.1 billion (US$ 35 million) for the year ended 31 December 2006.
This is an increase of 39 % compared to the net profit of Tsh25.3 billion ($25 million) recorded previous year.

Tanzania's only bank with a countrywide network of more than 100 branches, NMB made a profit after tax of Tsh8 billion which is Tsh3 billion more than the Tsh5 billion it made in 2005.

It paid income tax of Tsh11.6 billion for 2006 being a growth of 4.5 % as at 31 December 2006; it paid Tsh11.1 billion in 2005.

The bank said in a statement that it had designed strategies to upgrade its branch network to rollout Automated Teller Machines (ATMs) all over the country.

Some of the factors attributed to the bank's performances are the growth of lending activities, and favorable interest rates on money markets.

Rabobank-Nederland is the majority shareholder of the consortium which owns a 49% stake in the NMB bank while the government owns 51 % shares.

In August 2005, the Government of Tanzania approved the sale of 49% of its shares to a consortium led by Cooperative Centrale Raiffeisen - Boerenleenbank B. A. (Rabobank) of the Netherlands.

The government approved the sale at a purchase price of $29.4 million.
Tanzanian members of the consortium are: National Investment Company Limited (NICO), TCCIA Investment Company Limited and Exim Bank (T) Ltd.

Rabobank, the lead investor in the consortium, provides the management services to NMB and technical assistance for further development of NMB and operates 356 non-permanent offices and 2,981 ATMs.

It provides financial services through a network of 328 local member banks with 1,378 branches.



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Source: copyright © 2007 East African Business Week