The Tanzania Postal Bank (TPB) profitability level has crossed the ten billion mark, after it increased by almost 50 per cent since the institution was established some two decades ago.
The bank said yesterday that it has made a historic pre-tax profit of 10.28bn/- in 2014, well above 6.99bn/- recorded in 2013.
The bank, according to TBP Chief Executive Officer Sabasaba Moshingi, posted a 1.0bn/- profit three years ago but last year increased the amount ten times, a trend attributed to its innovative staff.
The CEO told journalists yesterday that TBP net income went up by 38 per cent to 53.22bn/-, which was a major boost of the bank’s pleasing results last year.
“The achievement was the result of innovation on our lending products,” Mr Moshingi said, “our cooperation with pension funds and good customer relations.”
In the said year the bank lending portfolio expanded by almost 60 per cent to reach 190.01bn/- from 119.73bn/- of 2013. “A new retired lending scheme attracted many customers,” Mr Moshingi said.
TBP in collaboration with pension funds is offering financial assistance to the funds’ members in the form of loans, including Wastaafu Loans, group lending, education and start-up capital.
The funds include Public Service Pension Fund (PSPF), LAPF, NSSF, PPF, and Zanzibar Social Security Fund (ZSSF). The bank deposits increased by 41 per cent to 240.15bn/-, the raise was also attribute to football clubs accounts after entering agreement with Young Africa, Simba and Mbeya City.
The assets grew by 48 per cent to 297.76bn/- in 2014. At the end of 2014 the bank had 28 branches and 22 mini branches while ATMs climbed to 30 – under Umoja Switch, the network has 188 ATMs – countrywide.
On Agency Banking introduced some two years ago, the network has expanded to 133 agents through TPB and 189 private agents.
In 2014, the bank set aside 150m/- for corporate social responsibility (CSR) that went to health, education, school desks, street children centres, building primary schools toilets and so forth.
Originally published on DailyNews Tanzania