DCB Commercial Bank profit reached 2.3bn/- last year, signaling an increase of 43 per cent from 1.6bn/- attained in 2018.
According to the bank’s financial statement availed in Dar es Salaam over the weekend DCB Commercial Bank performance improved across number of parameters.
The bank’s balance sheet recorded a tremendous growth, fuelled by 14 per cent 10.1bn/- growth in customers’ deposits in 2019 in comparison to the 2018 year.
“With growth in customers’ deposits, the bank was able to raise the amount of loans by 11 per cent, translating into 8.0bn/- that is higher than the growth of the loan portfolio extended during the past two years,” said the bank’s Finance Director, Zacharia Kapama. DCB Commercial Plc’ to gross loans reached 93.3bn/- in 2019 from 90.5bn/- in 2018.
It disbursed 60bn/- in new loans in 2019. Out of the money, 18bn/- was extended to small and medium enterprises (SMEs) where 10bn/- went to women and the youths. Other sectors that benefitted from the bank’s loans included trade, education and construction.
Other parameters that pushed up profit, according to Mr Kapama, was fuelled by growths in both interest and noninterest income streams. “We also managed to raise the number of the bank’s customers to 194,000 in 2019 from 175,000 in 2018.
The rise also helped to raise the number of accounts and thus transactions,” he said. Clients also made use of the banks digital banking platforms. Non-Performing Loans (NPLs) were contained down to 13 per cent of total gross loans from 19 per cent at the end of 2018.
“This was largely because the bank adopted a new approach to issuance and recovery of loans which proved to be effective,” he said noting that the bank will continue with the deployment of various initiatives that are geared at bringing the level of NPLs down to levels that are accepted by the banking sector’s regulator in the year 2020.
