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Exim Bank Pre-Tax Profits Up 80 Percent

August 6, 2014

EXIM Bank's pretax profit for the second quarter of 2014 has increased by 80 per cent to 9.6bn/- compared to the same period last year.

"We are happy to report impressive results for the second quarter of this year," said Mr Issa Hamisi, Acting Chief Finance Officer of Exim Bank in Dar es Salaam on Tuesday.

"The growth is proof of the bank's success, compliments to its various sources of generating revenues. We will continue to improve efficiency in our operations to meet our customers' needs.

Our bank is performing well and we are on track to meet our goals and the results for the second quarter show that we have continued to perform well," he said. Profit from interest income has increased by 36 per cent to 14.3bn/- compared to the same period last year and foreign exchange profit has increased by 33 per cent from the same period last year.

Dividends from investments in National Microfinance Bank (NMB) and the bank's branch in the Comoros have shown positive trends.

There has also been an increase in profit from fees and commissions by 19 per cent to 6.2bn/- due to increased foreign exchange business after implementation of a three-year strategic plan.

Revenues from investments have also increased by 184 per cent to 4bn/- accrued from dividends. "Operating costs have been controlled and there was an increase of only 21 per cent reaching 16.7bn/- which has been caused by establishing new branches and providing incentives to employees in efforts to expand services and bolster the bank.

As a result cost to income ratio has been reduced from 64 per cent last year to 57 per cent this year," he added. Customers' savings has been reported to have reached 776bn/-, an increase of 36bn/- compared to the previous year.

Loans issued have also increased by 16 per cent to reach 558bn/- and at the same the bank's balance sheet increased to 1.15tri/-.

"Our priority is in putting more efforts to consolidate our position in the market and to meet customers' needs by improving services," he noted.

In consolidating its market position, the bank has started an innovative retail model which has improved communication with customers and operations in all branches. The new model started this year.

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Source: AllAfrica

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