Bank M announced an impressive pre-tax profit for the third quarter this year, posting a highly inspirational achievement in the face of tight liquidity restrictions and high inflation rates.
Bank M’s Head of Transaction Banking, Jacqueline Woiso told a news conference in Dar es Salaam that the “outstanding” profit climbed to 9.58bn/- last September.
By comparison, profit in September 2011 stood at 5.93bn/-. “Our growth has been enormous,” Ms Woiso said, “(to the extent that) up to the end of this year’s third quarter, we have surpassed last year’s full year profit.” She added:
“…and this is a good gesture signifying that this year’s profit target (set at 13bn/-) can be easily realised.” She attributed the achievement largely to interest earnings generated from loans, foreign currency dealings, fees and commissions portfolios.
Bank M is owned by renowned lawyer and MP for Musoma rural constituency, Mr Nimrod Mkono. Proceeds from the lending portfolio rose by slightly over 44 per cent to 13.77bn/-, while total non-interest income increased by 86 per cent to 10.08 bil/- in cumulative year transactions by September, this year.
Bank M is basically a corporate bank. The revenue from loans followed an increase in deposits that rose by 44 per cent to clock 378.64bn/- in the quarter ended last September. The bank’s loan book increased to 291.77bn/- from 240.05bn/-.
Bank M’s Head of Internal Audit Orest Maskini said the exemplary performance within just five years of its existence was due to prudent lending and control of the non-performing loans to stay low at around two per cent only.
“A first-rate internal control enables assets to grow by almost 38 per cent and stick to almost the same percentage yearly,” Mr Maskini said. The situation, according to the bank, assisted the assets to grow to 462.69bn/- from 335.92bn/-. The industrial non-performing loans stand at about five per cent only.
The recently published report on the bank’s performance for the quarter ended last month shows the lending portfolio caters for all sector of the economy – led by manufacturing, trading and agriculture.
“Despite the risks associated with some sectors, such as agriculture, real estate and exports, after the global financial meltdown, we still managed to record zero NPLs (Non-performing loans) in such sectors,” Ms Woiso said.
Despite being young in the market, Bank M has been an active player in fulfilling its commitment to the society by undertaking significant activities under its Corporate Social Responsibility policy.
The bank, in partnership with the Rotary Clubs in Dar es Salaam, is for the third year in a row, staging the Dar Marathon, which is expected to raise more than 500m/- for the completion of one of the best Sub-Saharan Africa children’s cancer therapy and treatment centre at the Muhimbili National Hospital.
By ABDUEL ELINAZA, Tanzania Daily News