Bank M posts 75% increase in Profits

Bank M (Tanzania) Limited has reported a huge pre-tax profit increase
of 75 per cent for the six month period ended June, 2011, growing to
TZS 2.83 Bln., as compared to TZS 1.61 Bln. for the corresponding
period ended June 2010.

The bank mainly attributed the increase in profitability to the growth
in loan assets from TZS 98.87 Bln. as at 30th of June, 2010 to TZS
170.55 Bln. as at June, 2011. This growth in loan assets by 73 % has
brought with it an increase in interest income from TZS 6.54 Bln. to
TZS 9.85 Bln. for the period ended 30th June, 2011. In order to
support this growth in interest income of 51%, the bank paid TZS 4.34
Bln. as interest expense for the six month period ending June, 2011 as
against the TZS 3.07 Bln. paid during the corresponding period in
2010. The resultant net interest income at TZS 5.51 Bln. shows a
growth of 59% over the corresponding period in the previous year. The
Non Interest Income of the bank at TZS 3.05 Bln. for the period ending
June, 2011 also contributed well to profitability of the bank.

Commenting on the performance, Imani John, the bank’s Financial
Controller, said that they are delighted to be, yet again, recording
tremendous achievements with the bank’s assets, deposits, as well as
profitability. The loan portfolio of the bank has grown to TZS
170.55bn/- as at 30th June, 2011. This represents 75 % of the bank’s
total deposits, which has reached TZS 225.95 Bln. as at 30th June,
2011. With the above growth in loans and deposits of the bank, the
Total Assets of the bank has grown to TZS to 255.87bn/- as at 30th of
June, 2011.

The Financial Controller added that the above growth in loan book has
been achieved in a carefully risk controlled environment, which is
reflected in the very low levels of delinquencies in the bank’s loan
portfolio. The bank achieves this through very high levels of
diligence in the careful selection of customers and proper risk
management by a highly qualified credit risk management team.

“We are very careful in approving and disbursing loans and this has
helped us to keep the non performing loans below 2 per cent of our
loan portfolio, which is way below the industry average” said Imani.

This careful evaluation of risk is also reflected in the sectoral
exposure of the bank’s loan portfolio which shows that it is well
diversified with risks well spread across all the sectors of the
economy, with manufacturing and services at 18% and trade at 17%
taking primacy in the loan portfolio. The bank is very committed to
developing the agricultural sector in Tanzania and has lent 12% of
it’s loan book to agricultural activities. Further, exposure to
hospitality sector contributes 12 per cent of total loans with
construction and real estate at 11% per cent of the portfolio.

During the quarter under reporting, the bank was appointed as
Collecting Bankers for the Tanzania Revenue Authority (TRA), which is
reflective of the bank’s growing stature in the market and is expected
to give another fillip to the bank’s business profile.

Bank M has continued it’s stance as a standard setter in transparency
by publishing in – depth additional disclosures to its financial
statements. This is basically extra information on key financial and
performance indicators that is not mandatory to be published under the
central bank’s guidelines.

Recently, the National Board of Accountants and Auditors (NBAA) of
Tanzania had, in an industry wide competition organized by them, named
Bank M as the 2nd winner in the banking category for the Best
Presented Financial Statements for the year 2009.


TBL boosts Lugarawa community in Ludewa
….Hands over water project

THE community around the Lugarawa secondary school would have no
reason but a smile after the construction of water reserve tank with a
storage capacity of 50,000 cubic litres financed by the Tanzania
Breweries Limited (TBL) in Ludewa.

This is a part of TBL’s Without Water There Is No Life project in
which TBL has invested Tsh1.3 billion, about 70 per cent of the firm’s
total corporate Social Responsibility (CSR) budget for over a
three-year period, to improve access and availability of water to
communities in the country.

Handing over the water project costing about Tsh15 million, the
public relations officer for TBL, Doris Malulu, said that the project
would benefit not only the students but the entire community of
Lugarawa ward.

“I urge the community to take a good care of the water project. And I
would like to applaud the community in general for making the project
successful as they also supported the project in one way or another by
collecting gravel, sand, burnt bricks and so forth,” she stated.

Malulu said TBL was satisfied with the effort shown by the government
in constructing more classrooms to make sure that more pupils obtain
secondary school places “and may be later even become TBL employees.”

As part of its CSR, TBL has supported a number of projects in Iringa
such as mosquito nets and bed sheets for various schools and hospitals
in the region. “This is the first time that our company supports the
community in Ludewa district. Our firm has been supporting various
activities such as sports, environment, the health sector and now in
2010/11 our key area for support is the water sector,” she elaborated.

So far the company has spent more than Tsh250 million in water project
support countrywide since last year.

Receiving the water reserve tank project, Special Seats MP Pindi Chana
expressed gratitude to the community for Public-Private Partnership
(PPP) initiative as TBL chipped in to support the water reserve tank

“I commend TBL for the support, and our president Jakaya Kikwete for
bringing in PPP which allows partnership with various stakeholders. I
take part in various socio-economic development efforts both as MP and
a resident of Ludewa,” she told the gathering.

She said in past years secondary schools used to be sparse and no
cooperation on the issue existed between communities and private

Thanking the village leaders for their good plans that bring more
development in their areas, the MP urged the communities to organise
cleaning the water reserve tank periodically, to preserve it in a
good condition.

For his part, the headmaster for Lugarawa secondary school, Hashim
Masoli, said the project was introduced following a prolonged water
crisis in the school and the community around the school.

“The effort for this water reserve tank was contributed by the
parliamentarian after attending a graduation ceremony on September 27,
2010. We thank Madam Chane and TBL for making this project happen,”
he said, urging the MP and the company to continue taking an interest
in the school and the community.

The school has a total of 712 students, among them 395 girls and 317
boys, taught by 14 teachers.

“The project would greatly help the students and the community in
general,” the headmaster noted, pointing out that a project for
extension of boys’ hostel starting later this year can more safely be

Ludewa district executive director Christopher Nyandiga said the
construction of the water reserve tank completed on February 1-19,
2011 used up about Tsh11.8 million and Tsh4 million for paying

“I thank TBL for the support of the project and the MP, Chana for
being near the residents in helping to bring about more socio-economic
development in Ludewa district,” the DED remarked.

District Administration Secretary (DAS) for Charles Keia urged the
community to properly take care of the water project, noting that when
launching a new project the stakeholders examine the way the previous
project went.

“I thank TBL for the support of the construction of water reserve
tank, helping the government fulfill its expectations. In actual sense
the firm has reduced various challenges that the Lugarawa community
was encountering,” he stated.

On behalf of the DC, Keia also urged the parents to convince students
of Lugarawa secondary school to utilize the new hostels being built
because the government has spent lots of money for the construction.