PBZ raises profit to Sh31 billion in half-year results

Dar es Salaam. The People’s Bank of Zanzibar (PBZ) has increased its profit-after-tax by 18 percent to Sh31.15 billion in the first half of 2024 as the lender seeks sustainable growth and profitability.

The bank’s net interest income increased by 14 percent to Sh54.15 billion during the six months to June 2024, the bank said in a statement issued over the weekend.

“This growth is a testament to our effective execution of our strategies, which focused on growing our earning assets through improved efficient management of our balance sheet structure, supported by our excellent customer service, and the dedication of our team to deliver our promises to our customers and stakeholders,” said the bank’s managing director, Mr Arafat Haji.

According to him, the success is owing to the “sound economic policies aimed at spearheading investment and business growth, implemented by the government of Zanzibar.”

The bank also demonstrated commitment to efficient operations, with its cost-to-income ratio improving to 46.49 percent compared to the regulatory requirement of 50 percent.

“This efficiency, coupled with strategic investments in areas that drive long-term growth, positions the bank as a model of financial prudence and forward-thinking,” he said.

The bank’s total assets grew by 22 percent to Sh2.23 trillion, while the loan portfolio grew from Sh932 billion to Sh1.11 trillion. The bank’s deposit base also increased by 31 percent to Sh1.77 trillion, according to the statement.

“This growth reflects the trust our customers have placed in us and our ability to meet their financial needs and provide them with solutions to support their requirements,” said Mr Haji.

The bank’s level of non-performing loan ratio stood at 2.44 percent compared to the regulatory requirement of five percent.

The bank recently opened new branches in Morogoro and Mbeya.