Higher dividends for government from NMB
Over 7.9bn/- has been received by government as its dividend earned from the 31.8 percent stake invested in the National Microfinance Bank (NMB) held through the Treasury Registrar.
Dr William Mgimwa, the Minister for Finance, received the dummy cheque for the money from the Chief Executive Officer for NMB, Mark Wiessing at the weekend in Dar es Salaam.
The executive officer said that his bank has evolved significantly since its privatisation in 2005, from a limited mandate, to a full-fledged bank which was listed on the DSE in 2008.
The bank has reported its pre-tax profit as 102bn/- and 72bn/- profit after tax.
Wiessing pledged his bank would continue to faithfully observe its mission, “… to bring affordable financial services to the Tanzanian community, in rural and urban areas.”
He assured the public that NMB would continue with its service improvement programme and increasing its branches across the nation boasting a capital expenditure budget of some 42bn/-.
He also stressed that his bank remains committed to serving government needs as well as community based projects by offering, “… competitive and reliable banking services .”
He gave a statistical summary of the NMB fund allocation for 2011 as having 31 percent of its value added resources assigned to the Government, 38 percent to employees, 21 percent to investment for expansion and growth, and 11 percent to its shareholders.
Speaking on behalf of the government, Minister Mgimwa applauded NMB for consistently paying an increasing dividend each year.
He praised the bank saying that, “..in 2010, the bank paid to the government a divided worth 5.7bn/- , and in 2011, it paid 7.9bn/-, that increment is a good indicator of the bank’s positive performance….” He commended the bank’s efforts in supporting corporate socials responsibility in Tanzania adding that it does not only support the society but also supports the government in eradicating poverty and improving the lives of those in needs.
Last week during its annual general meeting, the bank approved a total dividend attribution of 25bn/- , representing a 35 percent dividend pay-out ratio of the bank’s annual profit, or 50/- per share. More dividends will be paid to all shareholders in the coming weeks.
The approved dividend of 50/- per share is up 38 percent from the previous years 36/- per share, and represents a dividend yield of 6 percent