NMB Bank has paid 16.5bn/- dividend to the government with the Finance and Planning Minister Dr Philip Mpango challenging other privatised public entities to stop loss making complaints and start paying government dividends.
I commend NMB Bank for the outstanding performance and its consistency in paying government dividend every year,” he said at the NMB Bank Annual General Meeting held in Dar es Salaam at the weekend.
Dr Mpango said after receiving a dummy cheque worth 16.5bn/- from NMB Bank as dividend for the last financial year that privatised public firms ought to start paying government dividends from next year as NMB Bank has been doing.
During the Bank’s AGM, shareholders approved 104/-dividend per share and 52bn/-total recommended dividend which is in line with the bank’s dividend policy of paying a third or 33.3 per cent of its profit after tax in dividends.
Despite the challenging business environment, NMB Bank reported a 153.8bn/- profit after tax last year, which is 2.3 per cent increase from the 150.3bn/-that was recorded in the previous year.
NMB Bank Chairman, Prof Joseph Semboja said the board seeks to balance maximizing shareholders’ return while also reinvesting funds back into the bank’s business in order to finance its growth plans. “NMB has over the years maintained a healthy capital position and we intend to continue doing so.
To achieve this, it is crucial that we make the right decisions especially with the upcoming regulatory changes in capital requirements,” said the Chairman.
The capital adequacy ratios for banks in Tanzania are set to change in the near future following the Bank of Tanzania’s (BoT) requirement for all commercial banks in the country to fully comply with Basel II regulations and new international accounting rules for loan loss provisions. In the short term this may put pressure on the level of profits that Tanzanian banks can distribute.
NMB Bank Managing Director Ms Ineke Bussemaker said, “The bank is committed to continue support development of the Tanzanian economy, also in the current challenging circumstances.
At the same time we need to ensure adequate profit levels to improve our capital position,” Besides the said profit gains, NMB is pleased to be able to report a number of innovations and success during the year.
The innovations, the launch of Pamoja and Wajibu propositions, the establishment of more than 1,000 ‘Wakala’ and the integration with over 150 local councils for electronic collections are all contributing to enhanced financial inclusion through digital channels and increased deposits.
Also, the stable B1 credit rating awarded to NMB by Moody’s confirms the confidence of international investors in NMB. Similarly, domestic Tanzanian retail investors showed their trust in the bank by twice oversubscribing the NMB retail bond issue.