Prime
No dividend for Mwanga Hakika shareholders
What you need to know:
- Mwanga Hakika Bank recorded a Sh1.217 billion profit in 2021.
Dar es Salaam. In a view to bolstering its capital and position itself for competition, Mwanga Hakika Bank (MHB) shareholders will not be paid dividend for the full- year 2021 despite the fact that the bank recorded profit during the period.
The bank which came with the decision during its second Annual General Meeting held in Kilimanjaro over the weekend, recorded a Sh1.217 billion profit in 2021.
This was lower compared to Sh2.242 billion that was quoted in 2020, with the bank being not in a position to explain what triggered a decrease in profit.
“With the profit that we garnered in 2021, the bank’s board of directors proposes no dividend be paid and instead asks shareholders to up the bank’s capital,” the bank’s board of directors, Mr Ridhiwani Mringo said during the meeting. Currently, the capital of the bank which was formed two years back, stands at about Sh18 billion.
“We need to increase our capital for us to broaden the scope of our operations,” said Mr Mringo in a statement availed to The Citizen yesterday.
He assured shareholders of the safety of their money, saying they had made the right decision to invest in MHB.
The retired Prime Minister, Mr Cleopa Msuya, urged the bank to be innovative by coming up with various products that cater to people from all walks of life.
“Do not forget to come up with products that serve small customers who were the main goal of establishing this bank,” he reminded.
For the bank to move to the next level, the Bank of Tanzania (BOT) representative, Mr Leodgar Haule, urged the bank to keep on working hard and adhere to the existing laws.
“The Central Bank, for our part, will continue to provide the much-needed support to Mwanga Hakika Bank for it to reach where it wants to,” pledged Mr Haule.
The bank’s AGM was held just a few days after it was officially announced as a full-fledged commercial bank, a move that is set to tighten battle for customers in the bank’s industry.
