This report’s cover is a visualisation of the 850 headlines about banking that appeared in Tanzania’s newspapers between January and December 2010. The size of the word represents how often that word appeared in the headlines in 2010. Published by Serengeti Advisers Limited 567 Kibo Road, Mikocheni A P.O. Box 105620 Dar es Salaam, Tanzania Email [email protected] website www.serengetiadvisers.com © Copyright, Serengeti Advisers Limited 2011 Permission should be sought from Serengeti Advisers Limited before any part of this book is reproduced, stored in a retrieval system or transmitted in any form or by any means. ISBN 978-9987-9409-1-2 Design & layout Vivek Bahukhandi Magazine Centre (T) Limited Mikocheni B, Igombe Street. Telfax: +255 222 781 514 Email: [email protected] Printed at Colour Print (T) Limited 50 Nelson Mandela Expressway Tel: +255 222 450 331 Email: [email protected] Bclys PL Mag Advert(Final).pdf 1 2/25/11 12:46 PM C M Y CM MY CY CMY K Tanzania Banking Survey 2011 III Serengeti Advisers Limited Serengeti Advisers is a consultancy firm based in Dar es Salaam with expertise in corporate finance, economic and public policy analysis, and media and communications. We seek to be the advisor of choice for wide range of clients, include business, governments, NGOs and development agencies by drawing on our significant local and international experience and networks. We provide advisory services in three main areas: Economic and Public Policy Analysis Equipped with over a decade of experience and participation in East Africa’s economic and public policy debates, Serengeti Advisers is deeply engaged in the region’s policy discourse and strategising about economic growth, investment climate and private sector development. Corporate Finance Serengeti Advisers identifies, structures and executes diverse and innovative transactions for corporations and other organizations, often working alongside financial institutions. These transactions include expansions, acquisitions, divestitures, restructurings, and the issuance of equity or debt capital. Our global relationships, coupled with our unique understanding of local economies, industries and cultures, serve to help us deliver consistently high quality advice and service. Media and Communications Serengeti Advisers’ understanding of the local economic, social and political landscape has been acquired through years of professional experience across a wide-range of sectors that include banking, investment and public relations. This unique perspective ensures an unparalleled service offering in media monitoring, media analysis and communications in the Tanzanian market. IV Serengeti Advisers Tanzania Banking Survey 2011 V Acknowledgments Serengeti Advisers Limited (SAL) wishes to acknowledge the contribution of all the various individuals and organizations who made this publication possible. We are especially grateful to the bank executives and staff who responded to our requests for clarification. The excellent research and editorial support from the following colleagues is gratefully acknowledged: John Bakilana, Salim Ally, Godfrey Lwakatare, Aloyce Msuri, Paulsen Mrina, Victoria Massawe and Naima Sykes. We also appreciate the technical brilliance of our website team: Arnold Minde for the motion chart, Omar Mohammed for content oversight, Eneza Mnzava for strategic advice and Michael Zaun for overall design and execution. Finally, we thank the select group of banks who displayed their confidence in this publication by supporting it through advertising. While we have made every effort to ensure the accuracy of the facts contained in this report, we regret any and all errors and omissions. Aidan Eyakuze Bertram Eyakuze Abdu Simba Director Director Director Over 139 branches... Over 400 ATMs And still counting... 32 Lake 34 L. ˚ ˚ RushwaMisenyi Bukoba Victoria Mara Bukoba Rorya Buoen U MusomaMusoma Tarime kar Kayanga A Uke a rewe I. R I. M A R A o I. E Muleba nd Mugumu bo me u aiso I. Bunda G R M Nansio Loliondo A Kenyatta Road Mwanza K Regional Drive Lake PPF Ngara Chato Geita Magu Natron Namanga Biharamulo Sengerema yu Geita Misungwi BariadiSimi Longido M W A N Z ANgudu Tarakea Arusha Rombo Clock Maswa Tower Ngarenaro Karatu Monduli Hai Nelson Kibondo SH I N Y A N G A Mandela M L. Eyasi Mwadui Mwanhuzi MawenziP o Manonga Lake a Bukombe n y Kahama g o kibondo Manyara Moshi a Mwanga w Shinyanga n i o Kahama Mbulu s Babati i L. Kitangiri Simanjiro Nzega e Same K I G O M A b Babati Same m Nzega Igunga o ARUSHA I G Kigoma g Kiomboi om kasulu Kasulu be Katesh Singida Mkomazi Lushoto Kondoa Kondoa kigoma Ujiji ra Singida Mombo Toboramihayo a A Tanga Kaliua aw Madaraka Pemba urambo h D Korogwe Muheza Mkwakwani L M Korogwe Chake I Kibaya a Chake a l U a G g W sikonge Kilindi Handeni Pangani k A alla N e I Manyoni G S HandeniA N T A B O R A Manyoni T ba T m Zanzibar Li Dodoma a Mazengo Sadani Sham Kongwa Turiani Zanzibar n Mpanda a K Mpwapwa i g is m mpanda R U K W A ig Mpwapwa Mvomero a Bagamoyo a o W Kibaha DAR ES SALAAM n DOD O M A Bank House Morogoro Ilala y Kilosa Wami Chalinze Kibaha Kariakoo Bahi i Magomeni e k wa P b Morogoro Road g G Kisarawe Temeke a Run it m re i jo at Muhimbili N University Mwenge O Mukuranga Ru nkasi a PWANI Mbagala h R Msasani a aKilombero Mlimani Ciy ah Mkwawa Mbezi Lake u Iringa R Kibiti R O ufi NMB House Rukwa Kilolo ji Sumbawanga G Utete M B E Y A t Ifakara ji ea fi Sumbawanga Gr O Ru Mohoro Chunya mbarali IRINGA Mpui chunya MahengaR O Kilwa MbeyaMbalizi road Makambako u Kivinje mbozi Mwanjelwa M nd Kilwa Mt loleza ta Tunduma o u a tunduma r d M e n Njombe b a Tukuyu m g tukuyu makete Njombe lo u n i eg a ileje K w r Lu a L I N D I kyela b M ru Liwale ku m be Ludewa M RuangwaLindi Lindi L a Mtwara NachingweaNachingwea Ndanda Mtwara k Namtumbo e Songea Songea Masasi Tandahimba mbinga Masasi Newala Nanyumbu Newala Tunduru M T W A R A R UV U M A M ma litembo Tunduru vu Ru a l a w i You now have access to banking services from even more NMB branches across Tanzania. Giving you more than 139 branch network and over 400 ATMs offering you real time service, everywhere you go in Tanzania. Contents 1 Introducing the Tanzania Banking Survey Report 3 Part One 5 Overview of Tanzania’s banking sector trends (2006-2010) 7 Part Two 9 Market share overview and ranking 10 Total Assets 11 Deposits 12 Loans 13 Investment in Government Securities 14 Total Revenue for the quarter ending December 31, 2010 15 Net profits for the quarter ending December 31, 2010 16 Provisions for bad and doubtful debts for the quarter ending Dec 31, 2010 17 Shareholders’ Funds (capital) 18 Number of Employees 19 Number of branches 21 Part Three Individual Bank Profiles Tanzania Banking Survey 2011 IX X Serengeti Advisers Introducing the Tanzania Banking Survey Report Since 2006, Serengeti Advisers has been collecting the quarterly financial statements that are published by all regulated banks and non-bank financial institutions as required by the Bank of Tanzania. At the heart of this report is the presentation and analysis of these financial statements over the five-year period between January 2006 and December 2010. Objectives PART TWO: The second part ranks the banks across the following ten indicators of size and performance as at December 31, 2010: This report is motivated by Serengeti Advisers’ desire to provide: i total assets • Information by compiling, packaging and presenting the facts and ii customer deposits figures on Tanzania’s banking industry in one easily accessible iii total loans reference document. iv investment in government securities • Insight by identifying, highlighting and describing the trends v total revenue that emerge from an analysis of the data, and suggest new and vi net profits interesting interpretations of what these might mean for the banking vii provision for bad and doubtful debts sector. viii shareholders’ funds (capital) • Imagination by catalysing critical and creative thinking about how ix number of employees these trends could shape the future of the Tanzania’s banking x number of bank branches industry. PART THREE: The third part presents the profiles and selected financial This report will be of interest and value to, among trends for each of the 41 banks that had reported financial statements others: by December 31, 2010. The profiles include information on shareholders, directors, senior management. This information was gathered from the i Shareholders, directors and senior banking industry executives who bank’s websites and published reports and were verified for accuracy by want to compare their performance with that of their competitors. contacting individual banks for confirmation and clarification. The selected ii Bank and other financial services regulators as a complement to financial trends analysis looks at, their own analysis, iii Legal, financial and investment professionals as well as students i Income and profit trends as a basic measure of performance, and researchers who need to understand the structure and ii Customer deposits, loans and the ratio of non-performing dynamics of Tanzania’s banking industry. loans to show how the heart of the bank’s business – financial iv Domestic and foreign investors in Tanzania who want to know how intermediation between savers and borrowers – is performing, and their bankers are performing relative to others. the v General public who want to understand the industry and decide iii Structure of shareholders’ funds to highlight the depth and quality where to keep their savings. of the banks’ capital.