Monday, August 13, 2012

Bank of Africa Tanzania records profit


By a Correspondent, Dar es Salaam
Bank of Africa Tanzania’s net profit has doubled during the first half of 2012 compared to same period in 2011.
According to the financial statement released on 1st August 2012, the bank recorded Tshs 551 million for the quarter ended June 2012 up from Tshs 273 million recorded in June last year.  The bank recorded Tshs 1.4 billion for the year ending June 2012 compared to Tshs 722 million recorded in the same period ending June 2011.
According to the banks Head of Finance, Mr. Mussa Mwachaga the bank recorded net interest income amounting to Tshs 4 billion for the quarter ended June 2012 compared to Tshs 3 billion recorded in the same period last year. The bank recorded Tshs 8.2 billion for the year ending June 2012 compared to Tshs 5.7 billion recorded in the same period ending June 2011. This was attributed by increased lending to the SME sector, personal loans and the introduction of many new products in the market.
He further reiterated that the banks non-interest income increased by 37 per cent for the quarter ended June 2012 to Tshs 2.9 billion shillings compared to Tshs 2.1 billion in the same period recorded last year.  This is as a result of the bank customizing its trade finance portfolio products thus enabling customers to secure letters of credit and guarantees for their contracts with ease.
In addition, the increased profits has been attributed with the introduction of new product i.e. Home finance, insurance premium finance and smart junior investor account that have catered for new market segments the bank has focused on. Going forward the bank is focused on increasing its array of products and services to new sectors. 
The bank has in the recent years strengthened its services and presence in the country with a current network of 16 branches. Since it started operations in the country in 2007, the bank has managed to open ten branches in Dar es Salaam and six branches upcountry in Morogoro, Tunduma, Mwanza, Moshi, Mbeya and Arusha.  Within this financial year, BANK OF AFRICA TANZANIA will be looking at increasing its regional presence by opening up 4 new branches in the country.
The bank is part of a Group which operates in 15 countries, of which 7 are in West Africa (Benin, Burkina Faso, Ghana, Ivory Coast, Mali, Niger and Senegal); 6 in East Africa (Burundi, Djibouti, Kenya, Madagascar, Tanzania and Uganda). It is also present in the Democratic Republic of Congo. The group recorded a turnover of €385 Million in the year 2011.

Ends.  

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