2022 Financial Report

The Bank’s net loan book increased by 34% to TZS 423 billion (2021: TZS 316 billion) while the total assets increased by 25% to TZS 776 billion (2021: TZS 623 billion).

The Bank’s customer loans growth was a reflection of recovery of economic activities from the effects of covid-19 pandemic and strong delivery of the Bank’s strategy focusing on balance sheet transformation towards retail and SME which grew by 22% during the year.

There was also a strong growth on the corporate portfolio attributed to solid implementation of trade finance strategy leveraging on the vast network of BOA Group and strong balance sheet.

Customers’ deposits for the Bank stood at TZS 565 billion as at 31 December 2022 (2021: TZS 416 billion), being an increase of 36% from the previous year. The growth was attributed by money supply of which grew by 11.6% and excellent strategy execution including roll out of innovative products like Tigo Kibubu (a saving product in partnership with Telecommunication companies), introducing Teller safe machines, rolling out Banc assurance, automation of Trust accounts and customer base growth. Deposits are projected to further increase as the Bank continues to investment on new transactional platforms (new mobile app, new internet banking & agency banking).

During the year ended 31 December 2022, BANK OF AFRICA – TANZANIA recorded a pre-tax profit of TZS 7.9 billion (2021: Profit of TZS 5.2 billion), an increase from prior year due increase on Interest Income and decrease in credit provisions.

Net Interest Income (NII) grew by 9% to TZS 35 billion from TZS 32.2 billion recorded last year driven by balance sheet growth; total balance sheet grew by 25%, customer loans by 34% and financial investment on Government securities by 9%. The increase on Net Interest Income (NII) during the year was relatively lower compared to the balance sheet growth due to lower market rates both on customers and Government securities and increase eon global cost of funds.

Non-interest revenue (net fees and commissions and trading revenue) recorded a slight increase of 2% during the year due to increase on Bancassurance income and FX trading income highly accounted by structured deals done during the year and banc.

Total non-interest expense increased by 7% Year on Year much in line with the annual inflation and general business growth.

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