NMB Bank has become the first homegrown Tanzania entity to rank among East Africa's most valuable companies after posting record financial results for the first half this year.

NMB's rise to prominence becomes a new challenger to the largest companies in the region who have historically been occupying the coveted top spots.

While this year's results of stock markets highlight the overall carnage in African share valuations, Tanzania, however, remains an attractive investment destination for investors seeking attractive, long-term returns due to the country's strong macro-economic stability.

Speaking of the bank's remarkable achievements, the bank's Chief Executive Officer, Ms Ruth Zaipuna stated that, the Bank's vision is to increase its market share and sustain the growth trajectory.

Ms Zaipuna further stated that the bank remains ever so committed to continue delivering strong returns to its shareholders and positive impact on socio-economic development agenda.

The Bank has sustained strong financial performance in the first half this year with the bank's profit after tax (PAT) increasing 27 per cent year-on-year (YoY) to historic 262bn/- as at end of June.

Strong financial results have enabled NMB to solidify its number one position and further drive market share gains.

NMB has risen through the ranks, from merely a small bank in 1997 to become one among the largest banking institutions in East Africa.

A five-year trend analysis indicates that NMB Bank has grown considerably from being the 10th most profitable bank in East Africa in 2018, to the 3rd most profitable bank in the region.

NMB Chairman Dr Edwin Mhede said the Bank is committed to continue playing a greater role in driving Tanzania's growth agenda.

"We endeavor to hold true to our values and belief that 'high standards of corporate governance are a key contributor to the long-term success of the bank.

We therefore remain steadfast to our commitment to taking long-term approach to decision making, with the creation of lasting value for our stakeholders at the heart of board's operations," he said.

Currently NMB commands over 34 per cent profit market share and ranks amongst the most efficient banks in the region, with a Cost-to-Income ratio of 38 per cent (well below regulatory threshold of 55%).

The bank commands a total assets market share of 21.3 per cent (as of June 2023) and its market cap represents more than 14 per cent of total DSE Index value and 59 per cent of total financial sector market cap (which includes asset management companies).

After being mentioned as the best performing stock at the DSE last year following an impressive 51 per cent share price growth YoY (closing 2022 at TZS 3,020/-), NMB's stock has continued to record strong results, closing trading period on Tuesday this week at TZS 4,440/- (53.1% up YoY from TZS 2,900/- as of 5th September 2022).

Analysts state that the primary driver behind NMB's price appreciation during this period was the bank's stellar financial performance in the first half of 2023.

The bank reported a significant 26 per cent year-over-year increase in earnings per share (EPS) for 1H2023, rising from TZS 413 in 1H2022 to TZS 521.

This has undoubtedly boosted shareholder confidence in the bank's prospects and translated into increased demand for the stock.

This achievement ranks NMB as the sixth largest company amongst all listed entities in the East Africa region, Seychelles, and Mauritius stock exchange markets. NMB becomes the only Tanzanian bank on the list.

Copyright Tanzania Daily News. Distributed by AllAfrica Global Media (allAfrica.com)., source News Service English