May 24, 2024

KCB Tanzania’s Loan Portfolio Expands by 24%

KCB Tanzania's Loan Portfolio Expands by 24%

KCB Bank Tanzania has had an impressive growth in its loan portfolio for the first quarter of 2024, with the bank’s net loans jumping by a significant 24% to Tsh 931.2 billion (approximately Ksh 48.0 billion).

This can be attributed to its well-diversified loan offerings that cater to a wide range of customer segments. The bank has strategically designed loan products to meet the specific needs of individuals and businesses, fostering financial inclusion and propelling its own success.

KCB Tanzania offers Personal Secured Loans that come with the advantage of flexible repayment periods, extending up to 72 months, allowing borrowers to manage their repayments comfortably.

However, to qualify for these loans, borrowers must have an active KCB account for at least 3 months and be able to provide collateral in the form of title deeds, logbooks, or share certificates.

The bank also offers Working Capital Loans, designed to be a lifeline for businesses, injecting the necessary liquidity into day-to-day operations. By ensuring a steady cash flow, businesses can maintain smooth functioning, meet their operational expenses, and fulfill customer demands.

KCB Tanzania further provides Stock Financing which helps businesses procure the necessary inventory to meet customer demands and maintain a competitive edge. This empowers businesses to optimize their stock levels and avoid stockouts, ultimately contributing to their overall success.

KCB Tanzania’s financial strength is further bolstered by a 21% increase in total assets, reaching Tsh 1.5 trillion (approximately Ksh 75.3 billion). This upward trend reflects a remarkable 105% growth in assets over the past five years.

Notably, KCB Bank Tanzania Limited is the second largest mortgage lender in Tanzania.

Customer deposits at KCB Tanzania also witnessed an 18% growth, reaching Tsh 878.3 billion (approximately Ksh 45.3 billion). The bank offers term deposits for various durations, such as 3 months or 1 year. Some term deposits may only be available for a limited time.

KCB Tanzania may also impose minimum or maximum amounts for each term deposit, which must be maintained throughout the term. Additional funds cannot be deposited during the term of a term deposit, but additional term deposit accounts can be opened if available.

Term deposits mature on the anniversary of the date the deposit was opened, or the next business day if that is not a business day.

Read Also : I&M Bank Tanzania Q1 2024 Profit After Tax Increases by a Record 543%

KCB Tanzania also offers Shari’ah compliant banking services through its Islamic Window, KCB Sahl Banking. These services include customer deposits, fixed deposit Mudaraba accounts, and financing products.

The bank’s profitability has also seen a significant rise. Profit after Tax surged by an impressive 83% to Tsh 13.4 billion (approximately Ksh 0.7 billion), indicating strong financial performance.

KCB Tanzania maintains a healthy Non-Performing Loans (NPL) Ratio of 1.67%, demonstrating its effective credit risk management strategies.

This profitability is further reflected in the bank’s Return on Average Equity of 29.5%, a key metric that demonstrates the bank’s ability to generate profits from its shareholders’ equity.

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Moreover, customers can access kcb bank tanzania exchange rates (Ksh/Tsh FX Rate 19.4052) for their financial transactions and utilize the kcb bank tanzania swift code (KCBLTZTZXXX) for international transfers.