The Tanzania Postal Bank (TPB) has posted robust growth of about 18 per cent in the year ended 2013, with its net profit jumping to 4.73bn/-, up from 4.07bn/- registered in the previous period.
The bank has recorded high profit for the year despite making heavy investments in improving its branches, TPB POPOTE, establishment of new branches as well as the Corporate Social Responsibility (CSR).
Briefing a news conference in Dar es Salaam, the TPB Chief Executive Officer, Mr Sabasaba Moshingi, said despite the competitive banking environment, TPB has continued to register outstanding performance having an end goal of achieving financial inclusion.
“The continued investments focus at modernising the bank’s service provision by improving the current branches and establishing new, mobile banking with the aim of bridging the gap created by financial exclusion in order to open new windows for the unbankable population,” he said.
Mr Moshingi said throughout 2013, TPB focused on financial inclusion of the unbankable and under banked by growing footprint through the agents of TPB Popote that has reached 160 at the end of 2013 from only nine in the period ended 2012.
The bank also opened six mini-branches in Kahama District, Shinyanga Region, Geita in Geita Region, Sengerema in Mwanza Region, Chakechake in Pemba, Masasi in Mtwara Region and Makambako in Njombe Region.
The mini branches thus increased to 20 compared to only five in 2011. With its modernisation programme, the bank continued with the renovation of three branches at Manzese, Kigoma and Morogoro, plus two mini branches in Pemba and Tegeta.
Renovations of Musoma branch and Tunduma mini branches are in progress. One of the unique feature of TPB Popote is low account opening balance of only 2,000/- and the customer is given ATM Card upfront during the account opening.
During the period under review, the Bank’s revenue soared to 38.48bn/- which is 23 per cent growth from 31.09bn/- a year earlier. Similarly, profit before tax jumped to about 7bn/- from 5.67bn/- in 2012, which is 23 per cent increase.
“The success were recorded despite difficult macroeconomic climate marked by high inflation rate, high interest rates, intermittent power rationing, volatile exchange rates as well as capital constraints,” he said.
Also, the TPB’s total assets value grew to 200.84bn/ from 167.3bn/- which is almost 20 per cent increment. Customers deposits shot to 170.03bn/- from 138.86bn/- or 22.4 per cent growth.
Loans and advances rose to 119.73bn/- from 100.88bn/-. Mr Moshingi said the outstanding performance reflects balanced growth and foundation for the future despite the market challenges.
originally published on Daily News Tanzania.