DCB Bank shareholders share 1.8bn/- dividend

DCB Commercial Bank has paid 1.8bn/- to its shareholders as dividend, which is an increase of 90 per cent compared to 950m/- paid in the year 2012.

In an event held in Dar es Salaam at the weekend, DCB Commercial Bank Managing Director, Mr Edmund Mkwawa said the increment of the amount paid as dividend was due to outstanding performance of the bank.

The shareholders who were granted cheques of their dividends included the Dar es Salaam City Council, Ilala Municipal Council, Kinondoni Municipal Council, Temeke Municipal Council, Unit Trust of Tanzania, Umoja Unit Trust Scheme, National Health Insurance Fund and members of the general public.

“Despite the competitive business environment in the banking sector, DCB Commercial Bank has continued to post superb results in almost all key segments like profits, assets, deposits and loan portfolio,” he said.

For example, the bank managed to post a 3.7bn/- after tax profit from its operations last year, representing an increase of 95 per cent of 1.9bn/- profit made in 2012.

This year, he added, the DCB Commercial Bank is projecting to make 4.4bn/- after tax profits of which by last June, the bank has already registered 1.9/-.

“We expect to exceed the targets by the end of the year,” Mr Mkwawa noted. He said after changing from community to commercial status, the Dar es Salaam Stock Exchange (DSE) listed bank embarked on a number of business ventures.

The increased profit was also a result of the introduction of innovative new products to keep up with changes in the market to meet needs of the customers.

The loan portfolio increased by 16 per cent to 76bn/- last year from 65bn/- in the previous year, while the total assets grew 22 per cent to reach 143.9bn/- from 117bn/- in 2012.

The Chairman of the Board, Ambassador Paul Rupia, said the bank could have posted more flying positive results if all the shareholders had put their deposits at the DCB Commercial Bank. Last year the bank saw its deposits jumping to 108bn/- compared to 90bn/- in 2012.

For the period of the year under review, the bank has increased its branch network to seven branches from one they had in 2002.

For competitive market, the bank introduced Agency Banking Services which allows customers to access the services through authorised agents, whereas they managed to recruit 103 agents.

He said this year they aim at increasing profit after tax by 22 per cent. DCB which started as a regional microfinance institution commenced banking operations in 2003 as Dar es Salaam Community Bank and listed on the DSE in 2008.

In 2012, the bank changed name to become DCB Commercial Bank after securing a licence to carry out commercial banking business countrywide.

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