NCBA Bank Tanzania’s Profits Fall 22.5%, Assets and Loans Grow in Q1
NCBA Bank Tanzania has posted a net profit of TZS 2.6 billion for the quarter ended 31 March 2025, a 22.5% decline from TZS 3.35 billion reported in the same period in 2024.
- The drop in profitability reflects increased non-interest expenses and a marginal reduction in net interest income, despite stable asset growth.
- According to the bank’s latest financial disclosures, total assets rose to TZS 533.5 billion in Q1 2025, a 4.0% growth from TZS 512.8 billion recorded at the end of December 2024.
- Loans and advances to customers grew by 6.7% quarter-on-quarter to TZS 272.3 billion, signaling continued credit expansion, while customer deposits remained largely flat at TZS 262.3 billion.
Performance Highlights:
| Metric | Q1 2025 | Q1 2024 | % Change |
|---|---|---|---|
| Net Interest Income | TZS 10.00 billion | TZS 10.43 billion | ▼ 4.1% |
| Non-Interest Income | TZS 3.12 billion | TZS 3.15 billion | ▼ 0.9% |
| Operating Income | TZS 3.17 billion | TZS 3.35 billion | ▼ 5.5% |
| Profit After Tax | TZS 2.60 billion | TZS 3.35 billion | ▼ 22.5% |
| Total Assets | TZS 533.5 billion | TZS 512.8 billion | ▲ 4.0% |
| Customer Deposits | TZS 262.3 billion | TZS 262.9 billion | ▼ 0.3% |
| Loans & Advances | TZS 272.3 billion | TZS 255.1 billion | ▲ 6.7% |
The bank recorded a Net Interest Margin that remained under pressure, as net interest income slid 4.1% to TZS 10.00 billion. Non-interest income, which includes fees, commissions, and foreign exchange gains, also declined slightly to TZS 3.12 billion.
On the cost side, non-interest expenses surged to TZS 11.6 billion from TZS 9.9 billion a year earlier, reflecting higher personnel and administrative costs as NCBA Tanzania invests in business growth.
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NCBA Tanzania’s non-performing loan (NPL) ratio improving to 5.9%, down from 6.4% in December 2024. The loan-to-deposit ratio increased to 83.8%.
The bank’s total shareholders’ funds stood at TZS 93.8 billion, while return on average assets was recorded at 2.0%, and return on equity came in at 11.2%.
Net cash generated from operating activities stood at TZS 1.2 billion during the quarter, while investing activities yielded TZS 5.6 billion, largely driven by the sale of non-dealing securities. However, the bank recorded a net outflow of TZS 1.3 billion from financing activities.
Cash and cash equivalents closed the quarter at TZS 128.1 billion, compared to TZS 122.6 billion at the end of December 2024.
