NCBA Bank Tanzania reported a 22.5% drop in profit for the first quarter of 2025, even as it recorded improvements in asset quality and modest balance sheet growth.
The commercial bank posted a net profit of $965,364 down from $1.2 million in the same period last year, weighed down by higher costs and softer interest earnings.
Despite the profit decline, total assets rose to $198.2 billion as of March 31, 2025, a 4% increase from $190.4 million recorded at the end of December 2024, the bank’s latest financial statement reveals.
Loans and advances to customers climbed 6.7% quarter-on-quarter to reach approximately $1 million, showing continued credit expansion.
Customer deposits, however, remained relatively unchanged at $97.4 million.
Net interest income came under pressure, declining 4.1% year-on-year to $3.7 million, while non-interest income, which includes fees, commissions, and forex gains, dipped slightly to $1.2 million.
This revenue pressure came as the bank maintained a cautious approach amid macroeconomic uncertainties.
On the expense side, the lender’s non-interest costs surged to $4.3 million, up from $3.7 million in Q1 2024.
The increase was driven by higher personnel and administrative expenses as the bank invests in expansion and operational capabilities.
The bank’s non-performing loan (NPL) ratio improved to 5.9%, down from 6.4% at the end of 2024, signalling better credit quality.
Its loan-to-deposit ratio rose to 83.8%, reflecting a more aggressive lending stance.
Shareholders’ funds stood at $34.9 million. Return on average assets was 2.0%, while return on equity settled at 11.2%—both metrics showing some erosion from a year earlier.
Cash and cash equivalents increased to $47.6 million, up from $45.5 million in December 2024.
Net cash from operating activities amounted to $445,626, while investing activities generated $2.1 million, driven by the sale of non-dealing securities.
The bank recorded a net outflow of $482,595 from financing activities during the reviewed quarter.
