[Tanzania] TPB Bank Profit rises 30% in 2016
TPB Bank has posted a profit increase by slightly over 30 per cent to cement its bid to list at Dar es Salaam Stock Exchange (DSE) main market.
The firm's net profit increased to 10.8bn/- in 2016 from 8.2bn/- in 2015, thanks to surging net interest income that went up 37 per cent to 48.2bn/-. The financial statement issued recently showed, due to the profit earnings per share climbed to 451/96 last year from 417/- of previous year.
The non-interest income generated 24.9bn/- was almost at par with the previous year, dominated mainly by fees and commissions while foreign currency dealings slowed down to 3.58bn/- from 4.29bn/-.
The bank, which recently changed its name from Tanzania Postal Bank to TPB Bank, ahead of being listed at DSE, operating expenses climbed to 49.9bn/- from42.25bn/-.
The expenses increased as a result of employing 53 new staff following opening a new branch to reach 30 in 2016. TPB wants to raise between 70bn/- and 100bn/- through Initial Public Offer (IPO) to be announced later after the parliament changed the law which established the bank from state to public enterprise.
The bank management believes the move will enable the institution to come out of under capital challenges which hinders the firm expansion drive. Last year the bank assets grew to 400.7bn/- from 370.8bn/- pushed mainly by increasing loan book that ballooned to 297.59bn/- from 251.9bn/-.
However, customer deposits slightly dipped to 292.2bn/- from 307.88bn/-.
The level could not derail the bank lending spree in 2016. Tanganyika Postal Office Savings Bank, now TPB Bank since last March, came into being in 1925 when Tanganyika was under British Rule.
It later became a Savings Bank under the then East African Post and Telecommunications which ceased to operate after the collapse of the East African Community.