Habib Bank pre-tax profit grows 30-fold in 20 years

Dar es Salaam. Habib Africa Bank Tanzania Limited gross profit has increased by more than 30 times to Sh7.6 billion last year from Sh250 million recorded 20 years ago.

The bank which is currently cerebrating two decades of its establishment recorded growing pre-tax profit through interest incomes, business guarantee and trade finance.

Return on equity grew by 15 per cent annually for twenty years to Sh37 billion during last year, from Sh1.6 billion in 1998.

Vice president of Habib Group Banks, Mr Zain Habib, said conducive business environment and political stability led the bank success over the last twenty years.

He said the bank started operations with a deposit amounted Sh5.5 billion but now, they have grown to Sh232 billion as at the end of last year.

“We conduct our businesses in principle, honesty, integrity, hard work and we are ready to continue investing in this country,” said the vice president

The bank’s managing director, Dr Hasan Rizvi, thanked the Bank of Tanzania for supporting them through their twenty years journey as they have managed to generate 100 permanent jobs.

Speaking on nonperforming loans (NPLs), Dr Rizvi said the bank had the lowest rate, compared with the regulatory benchmark of five per cent. “We have maintained a tradition of offering a wide range of services at the most competitive pricing whilst remaining focused at extending the top class customer care to our esteemed customers,” said the MD. Former bank managing director Manzar Kazmi said it was not easy to convince people to open account in private bank but they only used one and half years to break the even.

“We did a door to door marketing to convince people and six month later we started to see the successes,” he said.