Net income interest seen as main reason for profits boost
BRUSSELS, 20 April 2016 - WSBI member Tanzania Postal Bank profits continue to grow as the institution prepares to be listed on the Dar es Salaam Stock Exchange (DSE), Tanzania Daily News reported.
The bank, which is mostly government owned (85.87%), registered a profit increase of 12.02 billion Tanzanian Shillings (TZS) last year compared to TZS10.28 billion in 2014. Profitability was pushed up mainly by net income interest, which garnered TZS35.13 billion in 2015, against TZS28.97 billion in the previous year.
The increase in net income interest has been attributed to mainly to a raise in lending amount and customer deposits, as well as revenue from non-interest income, such as deposit and transaction fees. During the year, the bank opened one more branch, and now has 29 agencies. The total number of staff grew from 574 in 2014 to 647 currently.
The national Parliament passed in In July 2015, the Tanzania Postal Bank Act, which paved the way for this expansion. The act seeks to incorporate the bank under the Companies Act in line with the Banking and Financial Institutions Act. Until then, only the TPB bank operated under the Companies Act.
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