Business & Economy

NMB Bank shareholders endorse 32bn/- dividend

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NMB Bank shareholders endorse 32bn/- dividend
NMB Bank Headquarters

NMB Bank Plc shareholders approved a 32bn/- dividend during their annual general meeting held in Dar es Salaam over the weekend. Each share will get 64/-

The Bank’s Board Chairman, Professor Joseph Semboja said his board is happy with management’s performance during the past year.

“In a period that saw many institutions make difficult decisions to scale down and, in some instances, close shop, I am proud that we were able to weather the storm. Our ability to maintain a solid capital base and our position as the most profitable bank in the country amidst changing times is a testament of the strong foundation we have built over the years,” Prof. Semboja added.

The 32bn/- payment is in line with the bank’s dividend policy of paying a third of its pre-tax profit. NMB made a gross profit of 93.5bn/- for the year ending December 31st, 2017 which was 39 percent decrease compared to 150.3bn/- that was recorded in the previous year. The decrease is attributed to an increase in credit provisions reflecting setbacks faced by our customers.

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Managing Director, Ineke Bussemaker re-assured shareholders that NMB remains committed to its mission to offer affordable customer-focused financial services to domestic clients. Bussemaker said last year, the bank opened 23 new branches, 10 new cash collection points, and 2,389 new NMB.

She said on the implementation of IFRS 9 which came into effect on 1st January 2018, NMB has remained with a strong capital base which is well above the minimum regulatory levels.

“NMB ended the year with a Total Capital Adequacy Ratio of 17.6 percent and a Liquid Asset Ratio (LAR) of 39 percent,” the Managing Director said.

With this dividend, the main shareholders who are Rabobank Group which owns a 34.90 percent share in NMB will get 11.68bn/- in dividend while Treasury which who holds 31.78 percent will receive 10.16bn/-.

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NMB Bank Plc is a full-service commercial bank incorporated in the country with four main business divisions; Retail, Wholesale, Agribusiness, and Treasury. The bank has 220 branches and more than 800 ATM’s across the country and is present in 98 percent of all governments¬†districts with over two million customers. It employs over 3,300 staff.