Mkombozi Commercial Bank has recorded stronger financial performance after posting a gross profit of 17bn/- in 2025, supported by increased lending, higher customer deposits and a stable economic environment.
The improved profitability enabled the bank to increase returns to shareholders, raising its dividend payout to 100/- per share from 92.40/- paid the previous year.
Speaking during the bank’s 17th Annual General Meeting of Shareholders held in Dar es Salaam last week, Chief Executive Officer Respige Kimati (pictured) said the bank’s performance reflected continued growth in business activity and effective management of operational costs.
“With this level of profit, we have met the requirements set by the Bank of Tanzania (BoT) for the payment of dividends to shareholders. We are confident that we will be able to pay an even higher dividend next year,” Kimati said.
He said the bank maintained a strong balance between profitability and efficiency, with its cost-to-income ratio remaining below 50 percent, while non-performing loans stayed below five percent, indicating continued improvement in asset quality.
The bank’s loan portfolio expanded significantly during the year, increasing to 188bn/- in 2025 from 162bn/- recorded in the previous year.
Kimati said growth in lending was among the key drivers of improved earnings, as more customers accessed credit to support business and economic activities.
Customer deposits also increased by 12 percent to 242.86bn/- in 2025 from 217.49bn/- a year earlier, strengthening the bank’s capacity to provide financing.
The increase in deposits and lending contributed to growth in the bank’s total assets, which rose to 318.23bn/- from 282.38bn/- recorded in 2024.
Mkombozi Commercial Bank Chairman Gaspar Njuu attributed the strong performance to Tanzania’s favourable economic conditions, including sustained economic growth and stable inflation.
Njuu said the economy expanded from an average growth rate of 5.6 percent to 5.9 percent last year, while inflation increased slightly from an average of 3.3 percent to 3.5 percent, remaining within the range targeted by financial sector regulators.
“The economy expanded and inflation remained within acceptable levels. This created a favourable environment for financial institutions to grow and provide services,” he said.
Representing the Tanzania Episcopal Conference (TEC), Archbishop of the Catholic Archdiocese of Dodoma, Beatus Kinyaiya, said Mkombozi Commercial Bank’s focus remains on expanding financial inclusion by reaching low-income communities.
He said the bank continues to promote a saving culture and encourage more people to use formal financial services to improve their livelihoods.
Kimati said the bank’s future strategy will focus on taking financial services closer to communities while developing customised banking solutions for institutional clients, particularly organisations operating in education and healthcare sectors.
The bank’s performance reflects broader momentum in Tanzania’s banking industry, where improved economic activity, digital financial services growth and rising demand for credit have supported profitability across the sector.