The Tanzania Commercial Bank (TCB) has reaffirmed its commitment to using digital technology as a driver of financial inclusion, with a particular focus on supporting small and medium-sized enterprises (SMEs).
TCB Chief Executive Officer, Mr. Adam Mihayo, highlighted the bank’s strategic efforts to expand digital infrastructure and make financial services more accessible to underserved business owners.
“This financial year, our priority is to enhance operational efficiency by leveraging digital opportunities,” said Mr. Mihayo during TCB’s 33rd Annual General Meeting held in Dar es Salaam on Sunday.
Bank's goal according to him, is to strengthen the SME sector, which is a vital pillar of the national economy.
National data shows that SMEs account for more than 95 percent of all businesses in Tanzania and contribute about 35 percent of the country’s Gross Domestic Product (GDP).
Many of the businesses are increasingly turning to digital platforms, which underscores the critical need for inclusive digital solutions.
Mr. Mihayo emphasized that the bank is focused on delivering technology-driven products that empower entrepreneurs and promote sustainable development. This digital transition has also coincided with a strong financial turnaround.
In 2024, TCB reported a pre-tax profit of TZS 44.81 billion, an impressive 201 percent increase from a loss of TZS 44.42 billion in 2023.
Net profit also surged by 170 percent, reaching TZS 32.62 billion, reversing a net loss of TZS 46.28 billion the previous year.
This turnaround was largely driven by a 19 percent increase in net interest income, which rose to TZS 120.90 billion.
The growth was supported by a 17 percent rise in gross interest income, totaling TZS 178.86 billion. Although interest expenses increased by 13 percent, revenue growth outpaced the costs, strengthening the bank’s financial position.
Operating income from non-interest sources also recorded significant growth. Other operating income soared by 379 percent to TZS 10.47 billion, providing further stability and reinforcing profitability.
The combined impact of higher net interest income and non-interest revenues led to an operating profit of TZS 44.81 billion in 2024, marking a full recovery from the previous year's loss.
In terms of its balance sheet, TCB reported robust growth. Total assets rose by 25 percent to TZS 1.74 trillion, while customer deposits grew by 23 percent to TZS 1.17 trillion, reflecting increased public trust and expanding business activity.
Although the bank’s non-performing loan (NPL) ratio slightly rose to 3.08 percent, it remains comfortably below the Bank of Tanzania’s 5 percent threshold, indicating sound credit risk management.
TCB Board Chairperson Mr. Martin Kilimba also reaffirmed the bank’s mission to support the financial needs of Tanzanians through adaptive and responsive solutions.
“In this fiscal year, we aim to improve our operational efficiency, build a stronger institutional image, and continue tapping into digital opportunities,” said Mr. Kilimba.
As TCB strengthens its digital transformation journey, it is positioning itself as a catalyst for SME growth and a model for inclusive banking in Tanzania’s rapidly evolving financial sector.
