Africa-Press – Tanzania. Absa Bank Tanzania announced a significant financial achievement on Wednesday, reporting a profit before tax of 54bn/- for the first six month of 2024, marking a 65 per cent increase compared to the same period last year.
The Bank’s managing director Mr Obedi Laiser attributed this substantial profit growth to a range of factors, including a stable and the enabling business environment, a growing economy, increased demand for credit facilities, and higher investor interest in financial instruments.
He also noted that lower inflation levels and reduced liquidity volatility in both the local currency and the US dollar contributed to the bank’s strong performance.
“Absa Bank Tanzania adeptly navigated these headwinds, leveraging our strategies to exploit available opportunities and delivering significant value and solutions to all our clients and stakeholders,” said Mr Laiser.
He further emphasized that the results reflect the bank’s unwavering commitment to addressing uniquely local challenges while creating value for stakeholders through its purpose of “Empowering Africa’s tomorrow, together…one story at a time.”
Mr Laiser also highlighted the bank’s shift towards a more customer-centric business model, as demonstrated by the unveiling of its repositioned brand earlier this year, under the new brand promise: “Your story matters.”
He explained that during the first half of 2024, the bank unveiled its repositioned brand, signaling a shift towards a more customer-centric business model, encapsulated in the new brand promise: ‘Your story matters.’ “We are committed to ensuring that Absa’s entire suite of services and offerings aligns with this crucial pivot towards a more human-centred and empathetic banking service ethos.”
“As we enter the second half of the financial year, we remain confident and dedicated to driving shareholder value,” Mr Laiser added.
“Absa Bank Tanzania will continue to play an integral role in the economic lives of individuals, businesses, and nations. We are committed to creating, growing, and protecting wealth through partnerships in economic development while contributing to Tanzania’s growth and sustainability.”
Speaking about the financial performance the bank Chief Finance Officer Bernard Tesha said for the six-month period ending June 30, 2024, the bank recorded total revenue of 105bn/- a 25 per cent increase from the previous year’s 83.8bn/-.
Profit before tax surged by 65 per cent, from 32.7bn/- in 2023 to 54.0bn/- in 2024.
In addition, total assets and customer deposits grew by 22 per cent and 21 per cent, respectively while the quality of customer loans continued to improve with a growth of 21.9 per cent, from 698bn/- in 2023 to 851bn/-.
The Return on Equity (ROE) stood at an impressive 38.2 per cent, up from 31.5 per cent in 2023, placing us among the best in the industry.
“Our continued focus on implementing our digital strategy has yielded sustainable gains, with our cost-to-income ratio improving from 53.5 per cent in 2023 to 46.0 per cent for the period ending June 30, 2024,” Mr. Tesha said.
In line with its Environmental Social Governance (ESG) framework, the bank launched the ‘Absa She Account’ to support women in business across the country by offering free banking services.
The bank also scaled up its SME offerings, both in financing and financial management solutions.
“Absa Bank Tanzania understands the significance of individual stories. Together, we are creating a remarkable chapter of outperformance, both for ourselves and our clients,” Mr Tesha concluded.
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