Africa-Press – Tanzania. THE outstanding performance posted by NMB Bank Plc last year prompted its shareholders over the weekend to approve the proposed hefty dividend payout of 68.5bn/- that amounts to 137/- per share.
Apart from setting the industry record of 206bn/- in net profit, the country’s leading financial services provider also surpassed its profitability target for 2020 by almost 50 per cent.
NMB Bank Chief Executive Officer Ruth Zaipuna told journalists after the bank’s second virtual annual general meeting (AGM) that the bank also recorded an industry-best 51 per cent cost-to-income ratio and a non-performing loans ratio of five per cent.
“The 68.5bn/- dividend payout is a 43 per cent increase compared to the dividend payout of 48bn/-paid for the year ended December 2019,” Ms Zaipuna said during the press briefing of the 21st AGM in Dar es, Salaam.
“This marks the third consecutive annual increase in the company’s dividend,” she explained.
The NMB Bank shareholders pocketed 96/- for each share in the year ended December 2019 when it made a net profit of 142bn/-. In 2018, the dividend payout was 33bn/- or 66/- per share after it netted a profit of 98bn/-.
The 2020 dividends will be paid mid this month, with the bank’s two major shareholders pocketing about 45.7bn/-of the total payout.
Strategic investor Arise whose stake in the business is 34.9 per cent will get 23.9bn/- and the government’s 31.8 per cent share ownership assures it nearly 21.8bn/-.
The NMB Board Chairman Dr Edwin Mhede said the approved dividend payout reflects consistent delivery of strong returns to shareholders and value-creation to all stakeholders as the bank continues to transform lives and contribute meaningfully to nation-building efforts.
The lender said the 43 per cent increase in dividend payout reflects the excellent 2020 annual results and its strong capital position.
Despite global Covdi-19 challenges, the 2020 historic net profit was a 45 per cent increase over the previous year’s outturn. The Bank’s Chief Financial Officer, Mr Juma Kimori, said they had targeted a profit after tax of 138bn/-, which means the bank surpassed the mark by 68bn/-being an increase of about 49.3 per cent.
“In 2020, we delivered a solid financial performance in the context of a challenging broader operating environment. Our continued strong performance into 2021 shows good progress along with our strategic plan and provides reassurance on the direction we have taken,” Ms Zaipuna noted.
She said the 65bn/-net profit made in the first quarter of this year was a 33 per cent increase over the level of profitability during the corresponding period in 2020.
The continued strong performance in 2021, Ms Zaipuna explained, affirms the disciplined execution of the bank’s operational strategy and readiness to capitalise on its firm foundations for sustainable business growth.
According to her, NMB has a healthy balance sheet and maintains solid capital levels that are well above regulatory benchmarks, which makes it internationally recognised as a stable and sound bank.
“Through our pool of talent and disciplined execution of our strategic plan, we remain committed to playing a key role in supporting Tanzania’s socio-economic development agenda by providing best-in-class service to our customers and strong returns for our investors,” Ms Zaipuna noted.
