By Business Insider Reporter
NMB Bank Plc has strengthened its earnings performance, reporting a 17 percent increase in profit after tax to TSh634.6 billion for the nine months ended September 30, 2026, compared with TSh543.3 billion recorded during the corresponding period last year.
Profit before tax similarly rose by 17 percent to TSh911.1 billion from TSh775.9 billion, reflecting growth in core banking income, increased contributions from fees and commissions and improved operating efficiency.
Net interest income, representing earnings from lending and investment activities after interest expenses, increased by 19 percent to TSh1.044 trillion from TSh879.5 billion. This followed a 22 percent increase in interest income to TSh1.378 trillion, although interest expenses also rose by 33 percent to TSh334.5 billion, reflecting higher funding costs.
Non-interest income grew by 16 percent to TSh531.8 billion, supported by a 28 percent increase in fees and commissions to TSh449.6 billion, suggesting greater utilisation of the bank’s transaction services and other customer-facing products.
However, foreign currency dealings and translation gains declined to TSh68.1 billion from TSh77.4 billion, while other operating income fell to TSh14.2 billion from TSh30.7 billion.
The stronger revenue performance was accompanied by improved cost efficiency. Total non-interest expenses increased by 16 per cent to TSh577.8 billion, slower than income growth, helping reduce the cost-to-income ratio to 37 per cent from 38 per cent.
Commenting on the results, NMB Bank Managing Director and Chief Executive Officer Ruth Zaipuna (pictured) attributed the performance to customer and stakeholder confidence, the resilience of the bank’s business model and disciplined execution of its strategic priorities.
“These strong results reflect the continued trust of our customers, shareholders and other stakeholders, as well as the resilience of our business model and disciplined execution of our strategic priorities. Recording a 17 percent increase in both profit before tax and profit after tax demonstrates NMB’s ability to sustain growth while creating value for our stakeholders,” she said.
The bank’s balance sheet also expanded, with total assets reaching TSh19.3 trillion, representing 25 percent year-on-year growth. Loans and advances increased by 27 percent to TSh12.07 trillion, while customer deposits grew by 20 percent to TSh12.96 trillion.
CEEO Zaipuna said the expansion reflected continued customer confidence and strong demand for financing across key sectors of the economy.
Asset quality remained stable, with the non-performing loans ratio maintained at 2.5 percent. However, impairment losses on loans increased by 32 percent to TSh86.5 billion, highlighting the importance of continued credit-risk management as the lending portfolio expands.
The bank’s capital position also strengthened, with shareholders’ funds increasing to TSh3.44 trillion from TSh3.21 trillion in June. Shareholders’ funds as a proportion of total assets improved to 18 percent from 17 per cent. Return on equity remained at 26 percent, while earnings per share increased to TSh169 from TSh144.
NMB also expanded its distribution network, increasing branches to 254 from 242 a year earlier, while its workforce grew to 4,380 employees from 4,044.
Looking ahead, management is positioning the performance within the bank’s Medium-Term Plan, Agenda 2030, covering 2026–2030. Ms Zaipuna said the strategy, now in its first year of implementation, was progressing strongly.
“Building on this momentum, we will accelerate technology-led transformation, deepen financial inclusion, enhance customer experience, and expand access to innovative financial solutions that meet the evolving needs of individuals and businesses throughout the 2026–2030 period.”
She said NMB would also increase financing to strategic sectors, including agriculture, manufacturing, energy, tourism and mining, while supporting enterprise development, investment and employment creation. Strengthening operational capabilities, risk management and regional ambitions would also remain priorities. “Our ambition under Agenda 2030 is to position NMB as more than a financial institution: a strategic partner in national building and a catalyst for inclusive and sustainable economic growth. We remain committed to mobilising capital, enabling businesses to grow, empowering communities and creating lasting value for our customers, shareholders and the wider economy,” Zaipuna said.
