Mkombozi Commercial Bank repositions its digital interventions

Speaking at the bank’s 13th Annual General Meeting (AGM), Chairman of the Board, Gasper Njuu, said the bank would focus on innovation and investment in technology to provide a quality service and improve the customer experience.

He said the bank has successfully completed integration with key partners in the delivery of digital services, especially mobile network operators (MNOs) and other digital solution integrators.

“We also plan to expand the physical reach of the Bank through bank branches and mini-branches/service centers (successful recruitment of 140 agents out of the 250 planned for 2022, deployment of Sadaka Digital solutions for collection churches and recruitment from 40 parishes in Dar es Salaam from 250 parishes in Tanzania in 2022),” he said.

Njuu said, “We will also intensify cost optimization initiatives with a strategic focus to achieve a cost/income ratio of 55% in the medium term (1-3 years).

During the year, the bank recorded an after-tax profit of 3 billion/- for the period ended December 31, 2021, which was attributed to the efficiency of business operations and the outcome of turnaround initiatives.

The bank’s president also praised the financial results on the main parameters of the balance sheet and profitability.

He said the bank recorded impressive profits and improved capital formation which was attributed to the efficiency of business operations and the outcome of turnaround initiatives.

“We have focused on growth opportunities while taking positive steps to address challenges in our operating environment,” he noted.

Njuu added that despite a number of challenges in 2021, the bank continues to focus on strategic initiatives aimed at expanding the physical reach of the bank through branch banking (MkomboziWakala) and mini- service center branches/outlets.

The bank’s chief executive, RespigeKimati, said 2021 placed them relatively better than the prior year 2020 on balance sheet fundamentals, particularly the capital element and the delivery of strategic initiatives.

Addressing the approximately 500 shareholders present at the AGM, Kimati said: “Our ambitions to transform and grow the business call for sustainable capitalization, in particular through a new injection of capital to support the necessary investments in key infrastructure and balance sheet growth. We call on shareholders to continue to support the bank’s investment plans in this business to deliver profitable, consistent and sustainable results for the bank.”

After going through the three-year phase of business turnaround and repositioning, management and the board are working on a medium-term strategic plan that will be presented to shareholders at a later stage for review and necessary support, it said. -he declares.

Kimati announced that on the financing side, the bank increased equity by 26% to 25.82 billion/- from 20.57 billion/- the previous year, thanks to a new capital injection (rights issue) of 2.2 billion/- and the retention of profits during the year under review.

He further noted that the core capital and total capital ratios were 19,589m/-, 14.63% and 14.63% respectively (2020: 16,423m/-, 11.08% and 11. 08%).

“This compares favorably to the minimum regulatory requirement of 15,000m/-, 12.5% ​​and 14.5% respectively in Core Capital, Core and Total Capital Ratio respectively.”

Bishop Bishop Beatus Kinyaiya, a member of the bank’s board of directors, praised the excellent performance of the managing director who took office in 2019, when the bank was undercapitalized with a capital of 8 billion/- below the limit of the regulators and succeeded in raising it to 19.9 billion/- in 2021.

“It was a huge turnaround for the bank, as the regulatory minimum capital limit for commercial banks is 15 billion/- and in two years Kimati struggled and brought it over the limit. That’s quite commendable and that’s what shareholders want to hear,” he said.

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