NEWS-2011

In our commitment to achieve our vision and mission of being a preferred Financial Service Partner in Tanzania through innovative distribution, extensive branch network and offering affordable customer focused financial services to the Tanzanian Community. NMB has launched a new business Centre in Arusha.

The essence of business centres is to be able to effectively and conveniently serve our SMEs customers, Government Institutions, Government Officials, MPs, Corporate Customers and large institutions. Business Centres are mainly to improve our customer service and enhance relationship with our above segment.

The function was graced by the Acting Arusha Regional Commissioner (RC) Mercy Sylla. Speaking during the launch, the Acting RC urged the bank to open more business centres in areas with high demand for banking services, saying that she was optimistic that the launching of the business centre would greatly improve efficiency in service delivery by the leading bank in Tanzania. “I also urge all SMEs and corporate customers banking with NMB to make use of the business centre to improve their business through various products and services offered by the bank” she said. She went on to say “the opening of this centre proves that the bank is committed to offer better services to the government and its institutions in addition to small, medium and large businesses through issuance of vital business information.”

Deputy Regional Commissioner Mercy Sylla unveils the curtain as a sign of official launch ofArusha Business Centre, looking on are Arusha Urban MP Godbless Lema, NMB Board Chairman Meshack Ngatunga and CEO Mark Wiessing.

In his opening remarks the NMB CEO Mr Mark Wiessing said, “Opening of business centre proves that the bank is committed to offer better services to the government, SME customers and large enterprises”. He added plans are underway to launch other centres in Dar es Salaam and Mwanza and Mbeya regions. The opening of the business centre brings the number of NMB branches in Arusha to eight, with another branch planned for Arumeru district in the near future.

On his part, NMB Board Chairman, Mr Ngatunga, said the bank recognizes the contribution of small, medium and large business customers in building the national economy and that is why specialized service has been introduced for them. “After a systematic assessment, NMB has identified challenges facing the entrepreneurs in accessing banking services to improve their individual well-being and nation economy as a whole, the bank came up with a solution” Mr Ngatunga said.

The NMB Business Centres are designed to offer high quality banking services to SME, government and corporate customers and will serve customers efficiently according to their needs. The business centres are manned by highly-trained banking professionals who will be advising customers on their banking needs.

Thursday 10th November 2011, NMB has marked another milestone by launching NMB mobile bills payment. Over 550,000 NMB mobile customers will be able to pay DSTV monthly subscription, DAWASCO water bills, Vodacom post-paid and TRA Taxes i.e Property tax and Personal Tax.

NMB CEO, Mark Wiessing (L) and DAWASCO CEO Jackson Midala celebrating joyfully, while guest of honour TRA Commissioner General Harry Kitily and DSTV representative, Ronald Shellukindo look on approvingly

While officiating the introduction of NMB mobile bills payment, NMB Chief Executive Officer Mark Wiessing said "NMB mobile bills payment service is a convenient, affordable and safe way to pay bills from the palm of your hands. The launch of NMB mobile bills payment affirms NMB’s commitment to improve convenience to its customers through the use of technology’’.

He reaffirmed NMB's commitment to offer practical and very affordable services to the people of Tanzania. Mark finished his remarks by thanking TRA, DSTV,Vodacom and DAWASCO for accepting to partner with NMB in developing NMB mobile bills payment service ‘’ NMB is delighted by the co-operation which your organisations have extended in launching NMB mobile bills payments, indeed this is a good example of how companies can work together in improving Tanzanians well-being’’

On behalf of the partners, Harry Kitilya Commissioner General of TRA stated “Making tax and bill payments, monthly subscriptions and pre-paid airtime easier is one among our major objectives. The launch of NMB Bill Payment through NMB mobile has come at the right time. We commend NMB and partners teams involved in developing this convenient product. We are certain this is a very important platform to enhance tax collections for TRA so needed for various Tanzanians development. I urge tax and bill payers to make best use of this service’’.

Late 2007, NMB introduced the first student account in Tanzania targeting students studying in colleges and universities. The introduction of the NMB Student Account aimed at tapping new customers and through that underlining NMB as a bank for everyone in Tanzania.  

In October 2011 NMB introduced a new promotion campaign linked to NMB student account branded Chomoka Nayo, aiming to revamp deposit growth trend and NMB mobile registration.

NMB ATM Steward Irene Rugimbana, pressing a button to select winners. Looking on from left are; Shilla Senkoro- Marketing Manager, Julio Batalio- Selcom Gaming representative, Mrisho Milao - Gaming Board representative and NMB ATM steward Maxmillian Kailangana.

On Friday November 5^th 2011, NMB held the first draw for the campaign where by 135 customers won various prizes including; 25 tickets to watch a match between Taifa Stars Vs Chad in Dar es Salaam, 10 mobile phones, 50 Taifa Stars jerseys and 50 NMB mobile T-shirts.

Customers opening NMB Student Account deposit above TZS 50,000 or transact by using NMB mobile or NMB PesaFasta automatically enter into a draw and win several prizes. NMB mobile enable existing NMB Student Account holders to register and  able to check balance, transfer money to other NMB accounts, recharge Vodacom Tigo, Airtel and Zantel airtimes thus to  purchase LUKU from the palm of their hand.

Early this year Dar es Salaam was shocked with bombs explosives at Gongo la Mboto barracks leaving thousands without shelter and killed hundreds. Among building affected was the prestigious Pugu Secondary School which is a special school that Mwalimu Nyerere taught and some of its alumnae became prominent leaders such as our former president His Excellence Benjamin Mkapa, former Speaker of Tanzania Hon. Pius Msekwa as well as Prime Minister Hon Mizengo Pinda.

Through this rich history and the fact that education and disaster support falls within NMB CSR policy, NMB supported Pugu Secondary School with reconstruction of the affected classroom.

In the handing over ceremony, NMB CEO Mark Wiessing also graced Pugu graduation held on 22^nd September. The uniqueness of Pugu Secondary school is that it has accommodated 48 disabled students.

On September 22^nd NMB CEO, Mark Wiessing handed over the reconstructed classroom. Concurrently, Mark presided Pugu graduation held on the same day that marked the passing over of 133 graduates

In his speech Mark said “Your graduation marks a new phase in your life. A phase in which education is going to be the only thing that separates you from the next boy and girl. Our assistance with the repairs of your classroom is only a small gesture among all the other things you need, but that didn’t stop Mwalimu, or Mkapa or Pinda to be successful. We wish you all the best”.

In acknowledging NMB support, Mr. Rukonge Mwero Head Master of Pugu on behalf on the school said that; NMB has availed timely support and appreciate NMB efforts in supporting education sector. He and the school recognize NMB is a friend in need to Pugu secondary school.

During the graduation ceremony, Mark also handed over ten of ten footballs as part of Ball project.

The morning of Saturday 10^th September 2011, the United Republic of Tanzania was awakened by sad news after M.V Spice Islander ferry, travelling between Dar es Salaam, Unguja and Pemba capsized in deep waters off Unguja coast. Hundreds of passengers on board were feared dead while more than 600 people were rescued.

The ferry disaster has been described as one of the worst incidents of its kind in Zanzibar’s history. Following this incident, the Government declared three days of mourning and requested for donations to support those affected and support rescue efforts.

Second Vice-President of Zanzibar Ambassador Seif Ali Iddi (c) receives a dummy cheque worth TZS 20 million from NMB Head of Public Relations, Shyrose Bhanji in Zanzibar. Funds were donated to support victims of M.V Spice Islander accident. Left is the NMB Zanzibar Branch Manager, Mluku Abdulmajid.

NMB responded to this call and donated TZS 20 million, NMB support aimed at providing emergency relief and support to all affected.

Network marketing is becoming effective marketing strategy applied in most institutions in the world. NMB applies its marketing through its business club.

NMB Business Club aims to create NMB SME and MSE customers network, provide business training, get feedback and also create a platform that enables NMB enhance bond between NMB and clients as well create a strong network marketing opportunity.

Since its inception, NMB Business club recorded great success since inception it has more than 30,000 members in 25 regions, with only Lindi and Zanzibar left to be covered.

A section of NMB Business Club members during a training training in Kigoma region

NMB has been conducting Business club training tailor made training programs to business Club members. In September, 2011 NMB Business Club spread wings to Shinyanga and Kigoma regions. NMB business club is an extension of Financial Literacy program.

Talking about impact of launching NMB business Club in his Zone, Abraham Augustino said “NMB Business Club will be an important tool in improving business and also act as advisory board on matters relating to MSE &SME”

Joyce Kaishozi Kigoma Business Club member  said, “NMB Business Clun has boosted my capacity through useful training and knowledge shared”

On his part, Mashaga Changarawe, MSE Manager said “Business Club forms a formidable platform for enhancing relationship with our customers and also recruit new ones through references”

NMB Business clubs have been working closely with branches across our regional network. Mashaga added that “Business clubs forms a formidable platform for enhancing relationship with our customers and also recruit new one through reference”

NMB Business Club are playing key role by increasing number of MSME, improving loan application documents (after training), increase relationship with MSME customers, increase awareness of NMB products to MSME clients and marketing products through its members.

Nane Nane fair is a national event celebrated to recognize farmers’ contribution to the Tanzania economy. Nane Nane is celebrated in seven Zones namely; Northern-Arusha, Eastern-Morogoro, Lake-Mwanza, Highland-Mbeya, Southern-Lindi and Songea, Western-Tabora and Central-Dodoma from 1st- 9th August, every year. At the national level, this event, took place in Dodoma and the closing ceremony was officiated by His Excellency President of Zanzibar Dr. Ali Mohammed Shein.

Nane Nane fairs formed a unique platform to showcase NMB support and involvement in Agriculture Development. In the just ended Nane Nane fairs, visitors showered accolades to NMB for playing a big role in supporting Agriculture Development in Tanzania.

This year, NMB scooped the first position in Central Zone, Eastern Zone, Southern Zone, Western Zone, Highland Zone and Lake Zone while Northern Zone attained the second position.

His Excellency President of Zanzibar Dr. Ali Mohammed Shein handing over a trophy to NMB Dodoma Branch Manager Colman Kiwia, after NMB emerged an Overall winner in the financial services providers’ category in the Nane Nane National fair in Dodoma.

NMB Dodoma Branch Manager, Colman Kiwia (Left) and NMB Kongwa Branch, Agribusiness Loan Officer Ally. O. Ally displays a trophy and a certificate awarded to NMB.

Daniel Msechu Eastern Zone Business Support Officer display a trophy awarded to NMB after emerging an overall winner in the financial services providers category during Nane Nane fair in Eastern Zone.

Today 25th July 2011, NMB has given a dividend amounting to TZS 5.7 billion t the Government in a ceremony held at the Ministry of Finance offices in Dar es Salaam, NMB CEO Mark Wiessing handed over a  cheque of TZS 5.7 billion to the Minister of Finance, Hon. Mustapha. Mkulo, in the presence of representatives of the Treasury Registrar.    

The Minister of Finance, Mustapha Mkulo (left) receives a dummy cheque of 5.7bn/- from NMB CEO Mark Wiessing (centre) and Board Chairman Misheck Ngatunga as government dividend from the bank

The dummy cheque represents the governments share in the TZS 18 billion dividends that NMB paid to its shareholders for the 2010 fiscal year. In 2010 NMB made a profit after tax of TZS 54 billion, and the bank declared a dividend of TZS 36 per share at its recent AGM held on 28th May 2011 at Mlimani City Conference Centre. This dividend represents a healthy pay-out ratio of 34% of the bank's Profit after tax.

Speaking during the ceremony Mr. Wiessing said " in addition to these dividends, the "NMB system" generated many other sources of revenue for government, including corporate income taxes (about TZS 25 billion), VAT and other duties of TZS 5-10 billion, and also income taxes(PAYE) withheld on the salaries of its 2500 employees, representing some TZS 15 billion. This brings total annual income estimated to be earned by government on the "NMB system" to about TZS 50-60 billion, and makes NMB one of the largest contributors to the Governments revenues".

Mr Wiessing also remarked on the important role that NMB plays in the Tanzanian economy. The number of NMB's customers has grown over the last 5 years from 600,000 to 1.4 million  and is representative of

Tanzania as a whole, from government to private sector, from civil servants to salaried, from multinationals to SME's and agriculture, and reaching out to the unbanked.

On his part, Hon Mkulo said "This is the great amount of dividends received from NMB as the amount had increased compared to the past years. Mr. Mkulo further called upon people dealing with Small and Medium Enterprises (SMES) to open account with NMB as the bank provides loans to its customers.

NMB has been a leader in the provisions of financial services in rural areas, through a branch network which has grown from 100 to 140 branches, and through the use of pioneering technologies such as mobile banking (from the convenience of a cellphone) to the card less ATM. NMB customers can now send money to friends and relatives, even if they do not have a bank account, through NMB's innovative PesaFasta solution, which can be accessed at more than 400 ATMs nationwide.

NMB has continued to grow in 2010, with deposits reaching TZS 1.8 trillion, while the bank is also showing growth in lending to its many SME and MSE customers nationwide, also actively involved in agriculture through its warehouse receipt programme and the distribution and redemption of TZS 128 billion in Agri vouchers issued by Government to the nation's farmers.

On Saturday 28^th May 2011, National Microfinance Bank Plc (NMB) held its Annual General Meeting at Mlimani City, Convention Centre. This was the 3^rd NMB AGM since the bank listed on the Dar Es Salaam Stock Exchange in 2008.

The year 2010 was another notable year for NMB, producing good financial results and continuing in its strategy to provide affordable banking services to the Tanzanian population, in rural as well as in urban areas, and to key segments of the economy.

NMB Board Chairman Misheck Ngatunga(centre)elaborating a point during the sixth AGM seated next is the Banks Chief Executive Officer Mark Wiessing (Left) and Company Secretary Lilian Komwihangiro.

The Chief Executive Officer, Mr. Mark Wiessing, made a presentation to the members of NMB on the progress of the bank since its privatisation. He highlighted the growth of the branch network from 100 to almost 140 branches, the launch of a proprietary ATM card with now over 1 million cards in circulation, the growth of the customer base from 600,000 to 1.4 million active customers, the growth of the ATM network from nil to over 400 machines nationwide, the pioneering launch of NMB mobile with over 400,000 active mobile banking customers and the recent launch of Pesa Fasta (card less ATM service) reaching out to the unbanked.

He further clarified that the bank operated in a favourable economic environment, with GDP for 2010 growing at around 7%, while inflation remained in the 5-6% range. In the money markets Treasury bill and Treasury bond rates remained on the low side. Despite the adverse impact of reducing market interest rates, the bank’s Profit before Tax (PBT) has grown to TZS 78 billion, and its Profit after Tax (PAT) reached TZS 54 billion.

A section of shareholders who attaended the Annual General Meeting.

In his report to the shareholders, the NMB Board Chairman, Misheck Ngatunga stated that strong loans and advances, customer deposits and transactional volumes growth, were the main contributors to good results, as also evidenced by the following key financials:

•   Total income up 23% year on year to TZS 199 billion
•    Total assets up 26% to TZS 2.1 trillion
•    Non-interest income representing an increasingly large percentage, at 35% of total income
•    Strong growth in loans and advances to the private sector (loan portfolio up 28%)
•    Customer deposits show steady growth at 24% p.a., and reach TZS 1.8 trillion
•    The loan to deposit ratio has accordingly grown to 47 %,  indicating continued scope for growth
•    The NPL ratio remains at acceptable levels of 2%
•    The banks Return on Equity stands at a commendable 23%

NMB’s earnings per share improved from TZS 95.10 in2009 to TZS 107.96 in 2010. Accordingly the Annual General Meeting approved a dividend of TZS 36 per share, or a total amount of TZS 18 billion, up 15% over 2009.

The bank will continue its ongoing efforts to further improve customer service through all its channels, while continuing to control costs and manage credit and other risks prudently, with a view to continue improving on its performance indicators, both operationally and financially. The bank continues to invest in technology and will cut over to a new core system in the course of 2011.

Wednesday May 25^th, 2011 NMB marked another milestone in the development of Soccer in Tanzania by launching sixth phase of Youth Soccer Ball Project targeting primary school students and Youth soccer teams countrywide. Youth Soccer ball project is part of activities outlined in the NMB/ TFF sponsorship agreement in support of Soccer development in Tanzania. The launch was officiated by Chairman of Tanzania Sports Council Retired col. Iddi Kipingu at the Karume Stadium.

In his speech, Ret. Col Kipingu commended NMB for accelerating the growth of football and enabling the inspiration of youth from all parts of Tanzania to realise their dreams of becoming successful football players. He said “I believe that the youth soccer support will also assist youth to refrain from unwelcome behaviours and activities" He further added that the youngsters will have a chance to showcase their skills and in so doing create a strong foundation for the development of the game.

Speaking at this event, NMB Chief Finance Officer, Mr. Waziri Barnabas said, “As it was in the last four years of football sponsorship contract, NMB continued to support youth soccer development throughout the country through extensive coordinated branch network and strong relationship and cooperation attained through TFF expertise”. He further added that, NMB is proud this year to partner with John Hopkins School of Health Education to spread and create awareness in the fight against Malaria.

Mr. Barnabas on behalf of NMB, extended appreciation to TFF for their support in ensuring key sponsorship areas are met within agreed timeframe. NMB is eager to continue supporting TFF in other future project.

Speaking on behalf of TFF, TFF President Mr. Leodegar Tenga thanked NMB for their endless support in supporting development of soccer in Tanzania. He further said, “NMB is one among few sponsors who trusted and agreed to support TFF in its tender age. It is with NMB support, that TFF has grown to be an example to reckon with in Africa”. He further said that, Tanzania Soccer level has grown tremendously at the time when NMB has been supporting the association.

Launch event was graced by TFF officials, Johns Hopkins Bloomberg School Public Health Officials, Youth Soccer coaches and committee members, Youth Soccer Sports Academies, Representatives from the Ministry of Education, Teachers and Students from various Dar es Salaam Schools in.