TPB Bank has almost doubled pretax
profit in quarter one of this year thanks to net interest, thus cementing
further its bid to list on Dar es Salaam Stock Exchange (DSE) main market.
The bank, formerly known
as Tanzania Postal Bank, posted a pretax profit of 6.82bn/- up from 3.99bn/- of
the same quarter last year. The profit was mainly attributed to the net
interest income that increased by 50 per cent to 15.83bn/- from 10.56bn/- after
loans and advances went up by 4.4 per cent.
The leading bank in
group lending showed interest to list on DSE main market in a bid to raise a
working capital of between 70bn/- and 100bn/-. TPB is fully owned by
government. The bank profitability pushed up earnings per share by 46 per cent
to 237/- in the first three months of this year from 162/- of similar period
last year.
At the end of March the
bank assets grew by over 27bn/- to clock 427.54bn/-, pushed, mainly by loans
and advances that increased 4.4 per cent to 310.27bn/-.
The loans growth was the
outcome of customer deposits increase 8.0 per cent to 315bn/- from 292bn/-.
Like many banks, TBP also is struggling with nonperforming loans after its
ratio to total gross loans climbed 5.33 per cent form 4.04 per cent of last
December.
NPLs amount reached
17.12bn/- from 12.42bn/- compelling the bank to set aside 1.6bn/- for
impairment losses on loans and advances against 1.0bn/- of previous period. The
bank maintained the same number of branches but increases its workforce to 710
staff from 660 staff at the end of last March.
TPB started as Tanganyika
Postal Office Savings Bank in 1925. Last March, the bank was incorporated under
the Companies Act (Cap 212) as TPB Bank PLC since it was established by the
Tanzania Postal Bank Act No. 11 of 1991.
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