DCB Commercial Bank Plc Chief Finance Officer, Zacharia Kapama said in Dar es Salaam yesterday that among the areas which contributed to the 106 percent profit is mortgage lending and ordinary deposits mobilization.
Zacharia also named other factors that contributed to profitability as opening of a new branch in Dodoma city, reduction of bad loans and increased lending at lower interest rates.
“Investment in digitization and rolling out of agent banking also played a key role in our profitability during the period,” the CFO said noting that the performance covers the period of ending June 2018.
He said over the period under review, the bank increased its customers base by recruiting over 2,828 new customers to reach 191,133,new loans disbursed increased from 88.7bn/- to 93.7bn/- which led to increased volumes of transactions which boosted revenue.
“During the period we also managed to reduce non performing loans from 18.8 percent to 17.7 percent during the same period while also reducing high interest deposits,” he underlined noting that the move lowered interest charges which the bank pays to owners of such expensive accounts.
Established in 2004 as Dar es Salaam Community Bank focusing on the commercial capital with most of its shareholders also based here, the bank was the first to be listed at Dar es Salaam Stock Exchange in 2008. It has eight branches in Dar es Salaam.
Its initial public offer was oversubscribed by over 300 percent from a target of raising 1.5bn/- to 5.2bn/-.
The bank which was originally owned by Ilala, Temeke and Kinondoni municipalities and City of Dar es Salaam became a public company after its IPO. It was listed at DSE in October 2008 and changed its name to DCB Commercial Bank Plc in 2012.
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