State pockets Shs52.5bn as dividend from NMB Bank in five years

NMB Bank Plc has boosted the National Treasury’s coffers with a total of dividend payout of Tsh52.52 billion in three years, the ‘Business Times’ has learnt.
Last week the bank disbursed Tsh15.3 billion in dividend earnings to the government for the year ending December 2019, which it owns 31.8 per cent stake within the bank.
The payment would help Tanzania’s revenue inflow amidst the COVID-19 pandemic.
In July 2019, the bank disbursed a total dividend of Tsh10.5 billion in dividend to the government for its stake in the bank.
Apart from the dividend, NMB
Bank in total paid over Tsh168.8 billion to the government as taxes ranging from PAYEE, corporate tax, Skills development levy, excise duty, VAT on services.
In June, 2018, the government received Tsh10.2 billion for the year ended 2017.
In June, 2017, the lender boosted the National Treasury’s coffers with a total of
dividend of Tsh16.5 billion in dividend to the government as part of the bank’s profit after tax for 2016.
In June, 2016, the largest lender in the country disbursed Tsh16.5 billion in dividend to the government as part of the bank’s profit after tax for the year ended 2015.
According to the bank, the amount Tsh15.3 billion is 45 per cent increase in dividends paid last year of which, the government received Tsh10.5 billion from the profit made in the year ended 2018.
Ruth Zaipuna, NMB’s Chief Executive Officer (CEO) pointed out that the money handed over to the Treasury’s coffers was part of the profits made in the financial year 2019, after deduction of expenses and taxes that reached Tsh45 billion.
She noted that the bank has overtime provided a good return on in- vestment (ROI) to its shareholders, one of which is the government.
According to NMB boss, another shareholder, Rabo, a Dutch bank received dividends of Tsh16.8 billion whilst Tsh13 billion went to other investors including, government institutions.
She said despite the bank being under transitional leadership in 2019, it continued to do better, and even during the novel COVID-19 pandemic, they continued to do better in the a half of the financial year 2020, recording a profit of Tsh93 billion.
“The bank continues to perform well
with existing partnerships, including providing assistance in various areas and during the disasters period, including COVID-19,” said Zaipuna.
She explained that they have em- barked on a strategy to boost agriculture in the country and have already lent Tsh800 billion to farmers, while traders have borrowed a total of Tsh2.2 trillion.
The lender also purchased 40,000 desks and 1,000 computers donated to support various schools to im- prove education sector in the country.
Last month, the Euro Money Magazine announced the bank as the best investment bank at the Euro Money international awards for eight consecutive years.
Finance and Planning Minister, Dr Philip Mpango, said the payout was promising, saying there are hopes for an increase in dividend this year.
He named NMB as one of the best performing institutions in the country, urging them to increase their efficiency.
However, Dr Mpango called on lenders to seek a solution to why their interest rates exclude the low-income earners.
Earlier, NMB Board Chairman, Dr Edwin Mhede, promised that the bank will do better next year after getting on board the CEO ‘’since when she was acting, she did not have much say in decision-making’’.
“I hope our bank will continue to be more stable,” he enthused.