The government will dispose of its 21 per cent stake in National Microfinance Bank (NMB) as early as next month, Finance and Economic Affairs Minister Mustafa Mkulo has said.
The move comes after almost a year of ``contemplation`` while the bank has been moving from strength to strength, having managed to pay bonuses to its investors throughout since 2005.
Mkulo announced government`s decision on NMB shareholding at an event in Dar es Salaam on Saturday at which all NMB shareholders received their respective dividends for last year.
He was speaking on behalf of the state, which still owns 51 per cent of the bank�s share capital.
The government received a hefty 5.6bn/- bonus from its majority shareholding in the bank, being a cut from net profits earned last year.
NMB Board Chairman Misheck Ngatunga announced that pre-tax profits for the year amounted to a staggering 57.9bn/-.
He said the bank paid the state 19bn/- in income tax realisation, its net profit thus coming to 38.8bn/-.
``However, our shareholders resolved that we should declare dividends totalling only 11bn/-, which is in line with the NMB�s dividend policy,`` explained Ngatunga.
Going by the principle of proportionality, the state as the majority shareholder got 5.610bn/-. It was followed by the strategic investor Rabobank - with 3.839bn/-.
The other partners, Exim Bank Tanzania Ltd, NICOL and TCCIA Investments Ltd, earned 638m/-, 726m/- and 187m/-, respectively.
NMB sources said pretax profit rose from 46.7bn/- in 2006 to 57.9bn/- last year, a 24 per cent growth, as the value of assets rose by 46 per cent - from 795bn/- to 1,160bn/- - during the period under review.
It was noted that the results were achieved at a time of increased competition in the marketplace as well as massive investment meant to improve the bank`s branch network, information technology and staff training.
Banking sector watchers see the bank`s profitability making members of the public scramble for what is set be the largest Initial Public Offer (IPO) ever witnessed in Tanzania and the bank`s subsequent listing on the Dar es Salaam Stock Exchange.
Out of the 21 per cent shares, to be floated, only 16 per cent would be accessible to the real public because 5 per cent would be reserved for NMB staff members.
Those qualifying for the IPO would also be entitled to dividends by the end of the bank`s financial year, according to Mkulo.
The planned sale of the 21 per cent stake is widely expected to attract immense public interest in the country`s nascent stock market.
Accordingly, the minister noted that most Tanzanians knew little about what trading in shares was all about and urged the media to help through sensitisation campaigns.
* SOURCE: Guardian
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