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Monday, August 11, 2008

Profits shoot up 60% as banks cash in from loans

By Damas Kanyabwoya

Banks have enjoyed a boom marked by a significant increase in pre and after tax profits, which have increased by 60 per cent, according to new figures.

The growth has been due to, among other things, increased lending following the government�s substantial reduction in public borrowing through Treasury bills and bonds.

According to the Tanzania Banking Sector 2007 Performance Review conducted by Ernst & Young, interest earnings accounted for over 70 per cent of total income of banks in the country last year.

The review shows that Citibank recorded the highest interest income among commercial banks with 86 per cent of its total profit coming from interest rates. Dar es Salaam Community Bank was highest among the non-commercial banks with 92 per cent.

However, in terms of monetary value the National Microfinance Bank (NMB) earned more interest income than any other bank during the year.



1 comment:

Anonymous said...

Financial Institutions boom. I hope it's not a bubble. It's good news for Tanzanian and investors, that indicate mutual growth in all the sectors.

We need to control inflation, and that will reduce the interest rate, and also boost majority of Tanzania to borrow at low rate.

Mdau #1