The National Bank of Commerce leaps to profit

· *The Bank has recorded Profit before income tax of TZS 14.3 billion
(2012: 3.9 billion) TZS 10.4 billion higher compared to the last year
representing an increase of 267%.*

*Dar es Salaam, April 15th 2014*

The National Bank of Commerce, on Monday announced it’s financial results
for the year 2013 whereby its Net Interest margin on average Interest
bearing assets increased from 8.98% in 2012 to 9.06% in 2013 due to
improvement on the quality of loans and advances to customers and higher
yield and increased volume on the market securities. Interest income
expressed as a percentage of total income increased to 67% (2012: 60 %)
mainly due to the increased booking of earning assets.

The NBC Managing Director Mizinga Melu said that the total assets from TZS
1,518 billion in 2012 to TZS 1,587 billion as at 31 December 2013. Growth
is mainly coming from investment of the recapitalised funds.

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Loans and advances increased by 4.5% to Tzs 684 billion in 2013 from
TZS 654 billion in 2012 ( an increase of 3.5% in 2012). This has been
attributed by new bookings as well as conversion of customers’ asset
pipeline.

“Customer deposits increased from Tzs 1,291 billion in 2012 to Tzs 1,305
billion in 2013. The increase is mainly attributed to liability campaign
carried out in quarter four of the year.” Added Mrs. Melu

The liability campaign was launched in October 2013 and it required a
customer to open and deposit into their Malengo Savings Account or to open
and deposit into a one year Fixed Deposits Account. At the end of the
promotion 13 customers won different prizes.

Apart from the promotions, NBC has launched different products to suit
customers’ needs like the recently launched NBC Direct which is a
collection of various products packaged together and offered as a bundle at
a favourable fee. The product is offered in three different packages, Gold,
Silver and Bronze with the lowest package being charged a monthly fee of
TZS 1000 per month.

NBC Direct is a revolutionary product which packages several products and
offers them as a bundle to provide a comprehensive solution to all
customers’ banking needs at a very affordable fee. The products which are
offered in three different packages includes Zero minimum opening balance
on all accounts with the lowest package including a free initial debit card
as well as free funeral insurance cover. Other packages include Free ATM
Transactions on all NBC ATMs, Free Internet Banking and Mobile Banking,
Free Standing Order to NBC Accounts, Free Balance Inquiry & Mini-Statements
as well as Accident Insurance Cover.

Being a bank which is conveniently everywhere, NBC is living its purpose to
help people achieve their ambitions the right way as it has also launched
the Free Credit Life insurance which is an insurance cover arranged to pay
the outstanding balance of the Personal loan in the event of death or total
permanent disability of the borrower provided that loan repayments are up
to date as contracted with NBC Limited. It is a free product because NBC
Limited will pay the Borrower’s Insurance premiums (charges).

Furthermore, NBC Management has taken steps to make sure their customers
are served by highly knowledgeable and experienced employees by ensuring
that they build strong talent pipelines through secondments and Pan African
Graduate trainee program which has been designed to build leadership
capability and create young and upcoming leaders for Africa and beyond.

This is in line with their purpose of helping their customers achieve their
ambitions – the right way.