High Asset

Tanzania: Banking Sector Assets Grow By 4 Pc

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The country’s banking sector assets grew below five per cent last year despite coronavirus pandemic shock thanks to loan book.

The assets grew by 4.1 per cent last year compared to 9.6 per cent in 2019 a report by EY Tanzania issued last week showed.

The report, Tanzania Banking Sector Review 2020, prepared using financial results data of 39 banks and non-bank financial institutions said the industry is “still considered stable and resilient”

The EY Tanzania report said the sector was still considered stable and resilient since banks have more than adequate capital buffers and liquidity.

“[And has the] ability to quickly capitalise on alternative channels such as agency, mobile and internet banking.”

These alternative channels, according to the report, has strengthened the accessibility of banking and related services and further helped to cater for the needs of customers.

The assets growth was pushed up by mainly loans, advances and overdrafts (54.1%), investment in government and debt securities (17.1%) and other assets (12.8%).

Also cash, balance with banks and items for clearing contributed (10.8%) and balance with other banks (5.2 %) of total assets.

The report said loans, advances and overdrafts recorded an increase of 3.9 per cent last year, which was in alignment with the growth in total assets compared to a 12.5 per cent increase recorded in 2019.

On liabilities and shareholders’ funds, customers’ deposits grew 3.4 per cent last year compared to an increase of 8.9 per cent in 2019 while shareholders’ funds grew by 8.7 per cent in comparison to a 10.7 per cent increase in 2019.