BANK of Africa (BOA) Tanzania said yesterday it will achieve growth strategies and improve its business thanks to its laid down strategies.
The bank said through a statement that it assured its customers and stakeholders that it was fully on course in implementing strategies to make it more agile and efficient to offer improved services.
BOA Managing Director Mr Joseph Iha said the bank was adequately capitalized, well above the minimum regulatory levels.
The lender closed last year with a total capital adequacy ratio (CAR) of 17 per cent against the required regulatory threshold of 14.5 per cent.
The minimum ratio of capital to risk-weighted assets is eight per cent under Basel II and 10.5 per cent under Basel III, meaning that if bank has a high capital adequacy ratio is considered to be safer.
Last September, BOA shareholders injected additional capital of 22.9bn/ – for the purpose of enhancing the bank’s lending capacity and ensuring continued solvency of the bank.
The bank also maintains a strong Liquid Asset Ratio (LAR) of 33 per cent against the regulatory minimum of 20 per cent.
Also, the lender, a subsidiary of BOA Group, total assets grew by 23.3 per cent at the end of last year, to close at 564bn/ -.
The assets growth was attributed to robust increase in customer deposits and loans and advances. Loans and advances grew by 4. 4 per cent to close the year at 277bn/-.
“ Most loan disbursements for the year were mainly focused towards growth and expansion of SMEs businesses thus supporting and contributing towards the overall economic development,” the statement said.
Customer deposits also increased by 17.5 per cent to close at 390bn/ – and shareholders’ funds, increased from 63bn/ – to 74bn/ – in 2019.
The lender significant reduced non-performing loans (NPLs) to 9.2 per cent from 16 per cent in 2018. The industry rate stands at 5.0 per cent.
