The quarter ending December 31, last year witnessed the FBME bank beating five other major commercial banks in terms of number of assets and deposits, but ranking third in terms of shareholders’ funds, the 2011Tanzania Banking Survey has shown.
According to the survey done by Serengeti Advisers Limited (SAL), the bank’s total assets stands at 2.97trn while deposits reached 2.664trn/-.
The figures are equivalent to 19.3 percent and 21 percent respectively of the market share.
The survey for other banks like CRDB shows that the total assets stood at 2.317trn/-, while deposits stood at 2.015trn/- during the period under review. This was equal to 15.1 percent and 16 percent of the market share respectively.
The National Microfinance Bank (NMB) total assets stood at 2.107trn/-, whereas deposits show reached 1.820trn/-. In terms of market share, assets and deposits during the period stood at 13.7 percent and 15 percent respectively.
As for NBC, total assets were 1.471trn/-, while deposits stood at 1.218trn/-.This translated to 9.6 percent and 10 percent of the market share respectively.
The other bank among the leading ones is Standard Chartered whose total assets amounted to 1.078trn/- and deposits 818.8bn/- for the same period.
In terms of shareholders’ funds (capital), the survey shows that CRDB was the leading bank with a total of 242.28bn/-.
Other banks and the shareholders’ funds in brackets are NMB (230.519bn/-), FBME (205.343bn/-), NBC (153.080bn/-) and StanChart (103.945bn/-).
Slight changes were noted in the total amount of net profits which all banks garnered during the period.
According to survey NMB led the banks followed by CRDB, FBME, Exim bank and Citibank, while StanChart bank emerged number six.
Most banks prefer to invest in government securities as the investment assures them of capital regain for meeting their operational costs.
The survey further shows that NMB put more money in government securities followed by CRDB, StanChart, NBC and then Exim.
Tanzania’s banking sector has grown significantly between January 2006 and December 2010, starting with the number of reporting banks increasing from 33 to 41.
The sector’s total assets have expanded 2.8 times from 5.5trn/- to 15.3trn/- during the period.
Deposits also grew from 4.4trn/- to 12.4trn/-, while loans issuance expanded to 5.9trn/- from a mere 1.7trn/-, and investment in government securities doubled from 1.2trn/- in 2006 to 2.37trn/- in 2010.
The banking sector’s pool of shareholders’ funds tripled from 476bn/- to 1.7trn/-.
During the period, seven new entrants injected a capital of 43bn/- to the sector. Two banks which did not publish financial statements in 2006 accounted for an additional 40bn/- of capital.
However, three largest banks by assets namely, FBME, CRDB and NMB account for 40 percent of industry’s capital, 45 percent of loan issuances, 48 percent of the assets, 52 percent of deposits and 54 percent of number of branches and investments in government securities.
Generally, seven other banks only challenge the top three in terms of industry capital with a 41 percent share while the remaining 31 banks share less than 20 percent of the market.
SOURCE: THE GUARDIAN
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