Mkombozi Commercial Bank PLC registers a Profit of 3.0bn in 2021
Mkombozi Commercial Bank PLC has registered a profit after tax of TZS 3.0 billion for the period ended 31st December 2021 which was attributed to business operations efficiency and outcome of the turnaround initiatives. The New Board Chairman Mr. Gasper Njuu said at the Banks 13th Annual General Meeting that the Bank achieved commendable outcome on key balance sheet and profitability parameters. He said that the Bank posted impressive profit and improvement on Capital formation that was attributed to business operations efficiency and outcome of the turnaround initiatives. “We focused on growth opportunities while taking positive strides to address challenges in our operating environment”. Mr. Njuu added that despite a number of challenges in the year 2021, the Bank continues to focus on strategic initiatives of expanding the Banks physical outreach through Agency banking (MKOMBOZI WAKALA) and Mini Branches/Service Centre Outlets. Speaking during the Annual General Meeting the Managing Director Mr. Respige Kimati, said that the Banks performance during the year places them relatively better than the preceding financial year 2020 on fundamental balance sheet metrics especially capital element and delivery strategic initiatives. Addressing close to 500 shareholders who attended the AGM Mr. Kimati said, our business transformation and growth ambitions calls for sustainable capitalization especially through fresh capital injection to support necessary investment in key infrastructure and balance sheet growth. It is our call to the shareholders to continue supporting the Bank’s investment plans in this endeavour in order to deliver profitable, consistent and sustainable results for the Bank. Having navigated through the three-year phase of business turnaround and repositioning, the Management and Board are working on a medium-term strategic plan which shall be presented to the shareholders at a later stage for consideration and necessary support. The shareholders had something to smile about as Mr Kimati announced that on the funding side, the Bank increased shareholders’ funds by 26% to TZS 25.82 billion up from TZS 20.57 billion the previous year, driven by fresh capital injection (Rights Issue) of TZS 2.2billion and profit retention during the year under review. He further noted that the Core Capital and Total Capital Ratio were at TZS 19,589 million, 14.63% and 14.63% respectively (2020: TZS 16,423 million, 11.08% and 11.08%). “This compares favourably with the minimum regulatory requirement of TZS 15,000 million, 12.5% and 14.5% respectively in Core Capital, Core and Total Capital Ratio respectively. Speaking on the planned development the Board Chairman Mr. Gasper Njuu said they plan to reposition Digitalization Interventions; namely, Agency Banking, Mobile Banking Application, Internet Banking and Cash Management Solutions. “We also plan to expand the Bank’s physical outreach through Agency Banking and Mini Branch/Service Centre outlets (Successfully recruited 140 agents out of 250 planned for 2022, rolled put SADAKA Digital solutions for church collection and recruited 40 Parishes in Dar es Salaam out of 250 Parishes in Tanzania in 2022). The Banks the Chairman Mr.Njuu said, we will also intensify cost optimization initiatives with strategic focus to achieve a cost/income ratio of 55% in a medium term (1-3 years). He further noted that Mkombozi Bank will focus on innovation and investment in technology in order to deliver quality service and improve customer experience (Successfully completed integration with key partners in the provision of digital services especially Mobile Network Operators (MNOs) and other digital solution integrators). On his side, Most Rev Archbishop Bishop Beatus Kinyaiya who is also the Board of Director of Mkombozi Bank commended the excellent performance of the Managing Director Mr. Respige Kimati who took the over the position as a Managing Director in 2019 when the bank was undercapitalized with a capital of TZS 8bn below the regulators limit and raised it up to 19.9bn in the year 2021. This was a huge turnaround time for the Bank as the regulators minimum capital limit for Banks is TZS 15bn and within two years Mr. Kimati struggled and brought it above the regulator’s minimum capital requirement. This is quite commendable and this is what shareholders want to hear. He said. END.