Record as top banks in Tanzania cross Sh2 trillion in annual profit

The leading banks by asset size include CRDB Bank Plc (Sh16.59 trillion), NMB Bank (Sh13.731 trillion), NBC (Sh4.292 trillion), Exim Bank (Sh3.133 trillion), Stanbic Bank (Sh3.038 trillion), People’s Bank of Zanzibar (PBZ) (Sh2.507 trillion), Azania Bank (Sh2.489 trillion) and Standard Chartered Bank (Sh1.94 trillion).

Other notable banks in this category are Diamond Trust Bank (DTB) (Sh1.795 trillion), Tanzania Commercial Bank (TCB) (Sh1.742 trillion), Absa (Sh1.6 trillion), KCB Bank Tanzania (Sh1.591 trillion), Citibank (Sh1.242 trillion), and Equity Bank (Sh1.032 trillion).

An analysis by The Citizen of unaudited financial statements from at least 22 commercial banks reveals that the sector’s total net profits surged to Sh2.14 trillion in 2024, up from Sh1.57 trillion in 2023.

Among the most profitable banks, NMB led the sector with a net profit of Sh643.8 billion in 2024, an increase from Sh545.2 billion in 2023. CRDB Bank followed closely, posting a net profit of Sh550.8 billion, rising from Sh422.8 billion the previous year.

Stanbic Bank secured third place with a 45 percent increase in net profit, reaching Sh128 billion in 2024, up from Sh88.5 billion in 2023. NBC followed in fourth place, achieving a 38 percent growth and recording Sh117.79 billion, up from Sh85.7 billion the previous year.

Standard Chartered Bank was near the Sh100 billion mark, registering Sh98.66 billion, an increase from Sh86.8 billion. Exim Bank, with a net profit of nearly Sh90 billion, climbed to the sixth position, improving from Sh60.45 billion in 2023. PBZ ranked seventh, posting Sh85.53 billion, marking a 67 percent rise from Sh51.29 billion. Absa secured eighth place with a net profit of Sh71.1 billion, compared to Sh54.14 billion in 2023.

Other notable performances included Citibank (Sh63.07 billion), KCB (Sh51.9 billion), DTB (Sh51.21 billion), and Azania Bank (Sh38.04 billion). TCB, which had posted a loss of Sh37.73 billion in 2023, rebounded with a net profit of Sh31.94 billion in 2024.

Equity Bank also saw a significant increase, achieving a net profit of Sh24.94 billion, up from Sh11.33 billion in 2023.

Bank executives attributed these record-breaking earnings to Tanzania’s improving business climate and strategic banking innovations.

“Our results reflect the strength of our business model, the dedication of our people, and the trust of our customers. As we look ahead, we remain focused on driving innovation, expanding financial inclusion, and delivering sustainable value to all our stakeholders,” said NMB Bank’s CEO, Ms Ruth Zaipuna.

Some of NMB Bank’s key achievements include a 16 percent rise in total revenue to Sh1.6 trillion, supported by a 13 percent increase in net interest income and a 23 percent surge in non-funded income. NMB’s cost-to-income ratio improved to 38 percent, well below the regulatory limit of 55 percent.

Additionally, the bank’s non-performing loan (NPL) ratio improved to 2.9 percent in 2024 from 3.2 percent in 2023, demonstrating enhanced credit quality.

CRDB Bank Group CEO Abdulmajid Nsekela credited the bank’s performance to its 2023-2027 strategy, which focuses on digital solutions, operational efficiency, and regional expansion.

“This strong financial growth reflects our commitment to financial inclusion and support for MSMEs, agriculture, youth, and women across East Africa,” he said. He noted that digital investments contributed to a 14 percent increase in non-interest income, while retail, SME, and corporate loans, as well as treasury bills, drove a 27 percent rise in interest income.

CRDB’s cost-to-income ratio of 45.7 percent remained well within the industry benchmark, and its NPL ratio of 2.9 percent was comfortably below the 5 percent regulatory limit.

Stanbic Bank Tanzania’s Chief Executive, Mr Manzi Rwegasira, attributed the results to a well-executed strategy and a conducive operating environment supported by government policies. “We also enjoy the support and trust of our clients and the collective efforts of our exceptional team,” he said.

Looking ahead, he noted that the bank plans to diversify its product offerings, enhance digital capabilities, and expand its branch network.

KCB Bank Tanzania’s Managing Director, Mr Cosmas Kimario, echoed similar sentiments, stating that improved banking regulations and technological advancements have played a key role in the sector’s growth.

“The business environment has improved, along with banking regulations. The regulator has been responsive, and we see many players operating in a conducive environment,” he said. 

He added that digital banking solutions have significantly expanded financial inclusion, enabling citizens to access services via mobile phones and point-of-sale (POS) machines without requiring physical bank branches. All banks, with at least 14 categorised as first-tier lenders—each holding a balance sheet exceeding Sh1 trillion.