But assures public of continued commitment to reliable customer service….
By Jaston Binala.
Stanbic Bank Tanzania Limited has reported it was unprofitable between 2014 and 2015. The bank’s net income after tax dropped by 4% during the period, while its returns on shareholders’ funds dropped by 2%.
The bank’s total liabilities increased from Tsh. 130.106 billion in 2014 to Tsh. 1.097 trillion in 2015, the banks mosr recent financial statements show.
The audited financial statements released in March this year covering the two years show the bank also sustained increased operational expenses from Tsh.72.911 billion in 2014 to 84.978 billion in 2015.
Efforts by telephone and e-mail to reach the banks Executive Director for comment were not successful. The Financial statements are signed by the bank Chairman, Mr. Hatibu Senkoro and Director and Chief Executive Officer Kenrick Cockerill.
Stanbic Bank Tanzania Limited provides various banking products and services in Tanzania. Its personal and business banking products and services include mortgage lending, such as resident ial accommodation loans to individual customers; and instalment sale and finance leases consisting of instalment finance for vehicles in the consumer market and finance of vehicles and equipment in the business market.
The company’s personal and business banking products also comprise transactional and lending products, including transactions in products associated with the various points of contact channels such as ATMs, Internet banking and bank branches. It also provides corporate and investment banking.
Asset growth on the performance indicators announce an increase from 21.56% to 28.32% during the period, but the earning assets to total assets ratio dropped from 85.11% down to 82.99%. The shareholders’ funds to total assets ratio dropped from 13.41% in 2014 to 11.90% in 2015.
The bank is meanwhile the subject of a number of controversial financial dealings, including alleged facilitation of money laundering. In October last year, the Bank of Tanzania imposed a penalty of Tsh.106 million to Stanbic Bank Tanzania Limited for failing to observe Regulation 6 of Bank of Tanzania (Credit Reference Databank) Regulations 2012.
In a recent statement, however, the bank defended itself saying it was aware of the Parliamentary report regarding IPTL and the Tegeta Escrow account and the associated suggestion that the Bank might have permitted money laundering through banking an affected party but added it that was “satisfied that Stanbic Bank Tanzania has complied with all of its anti-money laundering obligations and co-operated fully with the authorities in their investigations.”
“We wish to reassure our customers that Stanbic Bank Tanzania has stringent and robust processes in place to comply with the fiduciary and regulatory laws as set by the government of Tanzania. We remain committed to serving our customers,” the bank said in a published statement.