TPB Bank pretax profit increases in Q1

The bank, formerly known as Tanzania Postal Bank, posted a pretax profit of 6.82bn/- up from 3.99bn/- of the same quarter last year. The profit was mainly attributed to the net interest income that increased by 50 per cent to 15.83bn/- from 10.56bn/- after loans and advances went up by 4.4 per cent.

The leading bank in group lending showed interest to list on DSE main market in a bid to raise a working capital of between 70bn/- and 100bn/-. TPB is fully owned by government. The bank profitability pushed up earnings per share by 46 per cent to 237/- in the first three months of this year from 162/- of similar period last year.

At the end of March the bank assets grew by over 27bn/- to clock 427.54bn/-, pushed, mainly by loans and advances that increased 4.4 per cent to 310.27bn/-.

The loans growth was the outcome of customer deposits increase 8.0 per cent to 315bn/- from 292bn/-. Like many banks, TBP also is struggling with nonperforming loans after its ratio to total gross loans climbed 5.33 per cent form 4.04 per cent of last December.

NPLs amount reached 17.12bn/- from 12.42bn/- compelling the bank to set aside 1.6bn/- for impairment losses on loans and advances against 1.0bn/- of previous period. The bank maintained the same number of branches but increases its workforce to 710 staff from 660 staff at the end of last March.

TPB started as Tanganyika Postal Office Savings Bank in 1925. Last March, the bank was incorporated under the Companies Act (Cap 212) as TPB Bank PLC since it was established by the Tanzania Postal Bank Act No. 11 of 1991.

SOURCE: DAILY NEWS

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