Absa Bank Tanzania records remarkable financial performance in 2023
Jovial Absa Bank Tanzania Managing Director, Mr. Obedi Laiser (centre), Acting Chief Financial Officer, Mr. Bernard Tesha (left), and Absa’s Head of Marketing and Corporate Affairs, Mr. Aron Luhanga (right), displays a pamphlet contains some details of the bank’s 2023 performances, during a media conference in Dar es Salaam today.
Performance snapshot:
- 132% Profit before Tax growth year on year
- 37% growth in Customer Deposit year on year
- 19% growth in Total Assets from prior year
- Return on Equity (ROE) of 32%
- Cost to Income Ratio (CIR) of 53%
Dar es Salaam, Thursday 1 February 2024 – Absa Bank Tanzania has recorded a remarkable financial performance for the fiscal year 2023, marking a year of unprecedented growth and best ever success since its establishment in the country.
Despite the challenges posed by the global economic landscape, Absa Bank Tanzania has demonstrated resilience, adaptability, and unwavering commitment to its customers, stakeholders, and the community at large, seizing the opportunities presented in the market to deliver exceptional performance.
In 2023, Absa Bank Tanzania achieved record-breaking financial results, reflecting robust growth across key performance indicators. Profit Before Tax (PBT) surged to an all-time high of TZS 75billion, a staggering 132% increase from the previous year, which contributed to an impressive Return on Equity (ROE) of 32% in 2023. Overall revenue recorded an excellent annual growth of 30% on the back of a 21% growth in Net Interest Income (NII) and 41% increase in Non-Interest Income (NIR), with cost registering a very modest increase of 3% year on year - well below inflation, with all these contributing to a great improvement in the Cost to Income Ratio (CIR) to 53% in 2023, well within the regulatory threshold.
The bank’s total assets surged to an all-time high of TZS 1.42trillion, a 19% growth from prior year. This is accompanied by an exceptional growth in customer deposits of 37% year on year to TZS 1.1trillion and an impressive increase in customer loans and advances of 25% from previous year reaching TZS 784billion for the first time and the ratio of Non-Performing Loans (NPL) reducing to 4.5%, well within the regulatory threshold.
Commenting on the results, Bernard Tesha, The Bank’s Acting CFO, said “The significant growth in customer deposits is a true reflection of trust from our customers both existing and new to the bank. The bank continues to have a strong capital position and funding base and operates well above the regulatory and internal requirements. Our prudent risk management practices, strategic investments, and unwavering focus on customer-centric solutions have positioned us as a preferred banking partner in the financial services industry.”
On his part, the Bank’s CEO and MD, Mr Obedi Laiser, said “Our outstanding financial performance in 2023 is a testament to our steadfast dedication to excellence, innovation, and sustainable growth. We have and will continue to leverage technological advancements, expand our product and service offerings, and foster strategic partnerships to better serve the evolving needs of our diverse customer base.
Furthermore, our commitment to corporate social responsibility and community engagement remains unwavering. Throughout 2023, we have continued our support for various initiatives aimed at driving positive change, fostering financial literacy, and empowering communities to thrive in a rapidly changing world.
As we look ahead, Absa Bank Tanzania remains resolutely focused on delivering value, fostering trust, and driving inclusive prosperity for all our stakeholders. We are deeply grateful for the unwavering support of our customers, the dedication of our employees, the understanding of regulators and policy makers and the confidence of our shareholders, which have been instrumental in our success.”
For more information, please contact:
Aron Luhanga
Head, Marketing & Corporate Relations
Absa Bank Tanzania Limited
+255 768 221 717
About Absa Bank Tanzania
Absa Bank Tanzania Limited is one of Tanzania’s leading financial institutions offering an integrated set of products and services across Corporate and Investment Banking, Business Banking with solutions for SMEs, and Retail Banking. Backed by its 21-year legacy in Tanzania and inspired by the people it serves, Absa is committed to finding local solutions to uniquely local challenges and everything we do is focused on bringing possibility to life.
Absa Bank Tanzania is part of Absa Group Limited, one of Africa’s largest diversified financial services groups. Absa Group employees approximately 40, 000 professionals operating in South Africa, Zambia, Botswana, Mozambique, Seychelles, Mauritius, Kenya, Tanzania, Uganda, Ghana. The Group has representative offices in Nigeria, Namibia, London and New York, as well as insurance operations in Botswana, Kenya, Mozambique, South Africa, Tanzania and Zambia. Absa is a truly African brand, inspired by the people we serve and determined to be the financial services Group Africa can be proud of.
For more about Absa Bank Tanzania, its products and services, visit www.absa.co.tz
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