Azania Bank posts Sh1.8bn profit after tax

Dar es Salaam. The Azania Bank Limited (ABL) posted an after tax profit of Sh1.8 billion last year from a loss of Sh6 billion recorded during the previous year.

The bank’s managing director, Mr Charles Itembe, said in Dar es Salaam that the development was a result of an incredible financial turnaround in the banking industry and collective efforts of the bank’s workers.

Mr Itembe also attributed the improvement of the bank’s performance to the growth of interest income and decrease in interest expenses.

He said there was an increased net interest income of Sh25.056 billion in 2017, up from Sh22.1 billion recorded in 2016.

The MD said deposits increased to 271.3 billion in 2017 from Sh236.38 billion registered in 2016.

He said the increase was attributed to the new bank’s strategies attracting corporate segments and those strategies, he said, rewarded the bank an increase in core deposits. Mr Itembe also said the bank increased interest income by 6.1 to Sh41.9 million in 2017 from Sh39.5 million in 2016.

“The increase mainly to growth in interest income from loans and advances interbank placements and sizeable growth in non-fundable income through our improved trade services,” he said.

Shareholders’ funds also increased by 91.1 per cent to Sh57.88 billion in 2017 compared with Sh30.05 billion recorded in 2016.

The growth of equity, he explained, was driven by Sh26 billion capital injections from shareholders.

The bank, he said, supports modernization of agriculture, participates in building industries and supports in different capacities and needs.