Kenyan banks in fellow East African country; Tanzania, for the half year ending June 2024, collectively recorded significant revenue growth.
The Bank of Tanzania (BoT) recently disclosed that subsidiaries of Kenyan banks within Tanzania’s borders collectively recorded a 74.7% spike in pre-tax earnings.
The revenue of these banks jumped to TSh91.4 billion in the period under review, compared to TSh52.3 billion in the same period the year prior.
Data from the BoT, as seen in the Tanzanian newspaper, The Citizen, showed that the Kenyan banks that posted the most earnings with a combined 76 branches in Tanzania include Equity Bank Tanzania, DTB Tanzania, NCBA Tanzania and I&M Tanzania.
The revenue increase recorded by these Kenyan establishments is a result of the deflation and improvising asset quality in Tanzania.
By May, Tanzania’s inflation rate was 3.1%, and the nonperforming loans ratio was 4.4%, a ratio below the 5% mark the Bank of Tanzania considers a ‘tolerable level.’
However, the ratio of Kenya’s nonperforming loans stands at 15%.
Below are the earnings posted by the aforementioned top-performing banks in the half year of 2024.
Top 5 best performing Kenyan Banks in Tanzania
| Rank | Bank | Pre-tax profit earnings |
|---|---|---|
|
1. |
KCB Bank Tanzania |
Tsh38.7 billion |
|
2. |
DTB Tanzania |
TSh25.2 billion |
|
3. |
Equity Bank |
TSh14.01 billion |
|
4. |
I&M Bank |
TSh7.3 billon |
|
5. |
NCBA |
TSh6.15 billion |
