MWALIMU Commercial Bank (MCB) has posted a profit net loss after net interest income took a heavy deep by going down four times in the third quarter of this year.
MCB, listed on Dar es Salaam Stock Exchange late 2015, saw its net profit loss plummeted to 795m/- in Q3 from net profit of 547m/- similar quarter last year.
The loss came after the bank, owned by teachers, net interest income plunged four times to 834m/- from 3.22bn/- in Q3 last year. This was despite double growth of the bank’s loan portfolio to 10.15bn/- in three months to September.
In June the portfolio lent 5bn/-. Also, although non-interest income raked in 57m/- in Q3 against 1m/- Q3 last year, the amount failed to cushion none interest expenses. The expenses dropped to 1.64bn/- from 2.68bn/-.
The drop was attributed mainly to decrease in salaries and benefits and other expenses. Nevertheless, while salaries and benefits dropped the number of workers jumped to 58 from 44. The bank has a single branch in Dar es Salaam. In cumulative year, the bank net profit loss was almost six times to 3.33bn/- from a net profit of 547m/-.
Though net interest income was slightly down to 2.42bn/- from 3.22bn/-, the non-interest expenses almost double to 5.64bn/- in the year ending September. The bank share since January has gone down by 3.85 per cent to 500/- from 520/-.
The IPO price was 500/-. MCB customer deposits increased slightly to 5.76bn/- in three months ending September from 5.5bn/- at end June. Tanzania Teachers Union has over 200,000 members across the country and owns 16 per cent of the bank’s issued and fully paid up capital.
TTU’s economic wing, the Teacher’s Development Company Limited (TDCL) owns 4.0 per cent of MCB’s issued and fully paid up capital. The rest 80 per cent is owned by the general public.