The milestone gives the lender muscles to extend service delivery to its customers while continuing to implement its expansion plans
Dar es Salaam, 26 October 2022. KCB Bank Tanzania has grown its assets value to over Tanzania Shillings One Trillion, a 105 percent increase within five years, making the bank one of the big lenders in Tanzania’s banking sector.
The increase was mainly driven by growth in customer deposits, which grew by over 103 percent in five years (2017/22), while Profit before tax (PBT) grew by 182 percent in the same period.
Speaking during the press conference to announce bank’s performance for the third quarter, the Managing Director Mr. Cosmas Kimario said the achievement is a result of strong strategies laid by the bank as well as improvement of the country’s business and economic environment.
He explained that the banking sector has started gaining momentum from the adverse effects of Covid-19 that hit the globe in 2019.
“Most businesses laid down intermediate strategies to revive their activities and they have started bearing fruits. This has helped us to earn strong asset base while serving our clients better,” he said.
Deploying digital technology in its operations was cited as another key driver for the growth whereby the bank has focused on strengthening service delivery through alternative channels as opposed to branch network alone.
“Digital services like Internet banking, Mobile banking and Point of Sale (POS) have increased efficiency in service delivery to our customers. Currently, most transactions are done out of the banking halls offering more convenience to customers,” he said.
Mr. Kimario also cited the improvement of the country’s economy, a result of stable and sound economic policies put in place by the sixth phase government and the Bank of Tanzania, as another contributor to the growth.
He also mentioned the Bank’s continued investment in human capital as a key factor to the growth. “We have continued to invest in human resources to speed up efficiency and were able to cut down operational costs to 49 percent from 72 percent within five years,”
The Board Chairman for KCB Bank, Mr. John Ulanga explained his confidence to the management saying that the bank has shown steady growth since its inception in 1997.
“We are currently implementing our expansion plan to reach more Tanzanians across the country. We have a strategy to ensure organic expansion by opening five new branches in different regions with business potential,” he said.
He added that the bank is also looking for acquisition opportunities to strengthen its business reach.
BANK PERFOMANCE IN FIVE YEARS
Talking of the performance the Head of Finance Mr. Willis Mbatia said that the bank’s:
Loans value has increased from 330 billion in 2017 to 623 billion in 2022, recording an increase of 88 percent.
Customer Deposits increased by 103 percent from 318 billion in 2017 to 646
Total Assets have grown from 508 billion in 2017 to 1.04 trillion by September 2022, a 105 percent increase while the annual increase stood at 13 percent.
Non-Performing Loans ratio has decreased from 17.51 percent in 2017 to 3.16 this year. The plan is to reduce the NPL ratio to less than 3 percent by the end of 2022.
Quarterly Performance
Mr. Mbatia also said that: Profit before tax by September 2022 was 22.4 billion, an increase of 39 percent compared to the same period in 2021 and that the profit in the three quarters of 2022 was 6.9 billion in quarter one, 7.7 billion in quarter 2 and 7.9 billion quarter 3 respectively.
