DCB Bank records an impressive business performance

A progressive Dar es Salaam based people's bank, popularly known as Dar es Salaam Community Bank (DCB) has recorded an impressive business performance for the year 2011. The report has shown together with other things the banks annual net profit which stands at Tsh. 3.7 billion. It has been learnt. According to the report, during the period under review, the bank has increased its deposits to the tune of Tsh. 78.8 billion and issued loans to Small and Medium Enterprises (SMEs) which amounted to Tsh. 60 billion. The Bank's Managing Director Edmund Mkwawa said that, the performance is after securing Tsh. 14.5 billion capital an aspect that will soon make the bank become a fully fledged commercial bank. According to him, about 46,506 of the bank's customers who had benefited from their loan fund scheme, used the money in various social development activities including individual house construction. He says that, about 16 percent of the bank's 9,540 customers used their credit loan facilities to cater for the need of their children's school fees. Other 6 percent which is equivalent to 3,577 customers used their loans to establish small scale business enterprises that generated their incomes. The report further states that, other 52 customers used their loans to dig up water wells within their residential compounds and as a result, they used water for their domestic purposes and others sold this precious commodity to their neighbours, thus making it as a lucrative business. He analyzed the development of other small scale business enterprises which he said that, up to 30th November 2011 had reached to 2,088 groups, loan issued to them was Tsh. 29.9 billion, and the total customers were 104,415 among them 81,444 were women representing 88 percent and men's number were 22,971 representing 12 percent. The bank expects to increase its network activities by increasing other office branches whereby it's scheduled to open another branch in earnest at Chanika township which is located about 32 kilometers away from the city of Dar es Salaam. DCB is a local Tanzanian bank which was established in 2002. The bank is led by Tanzanians whose shares are well being traded at Dar es Salaam Stock Exchange bouse. The share values are currently being traded at Tsh. 640 from Tsh. 280 in 2008. The Bank's CEO Mkwawa also analyzed the outlook of the bank for the year 2012 and noted that, the bank expects to increase its deposits to Tsh. 116.8 billion and loan by 42 percent from the current Tsh. 59 billion to Tsh. 84 billion. The bank also expects to increase the value of its dividends from Tsh. 57 per share to Tsh. 65 per share per year. Furthermore, the bank plans to establish new bank services such as macro-credit facilities which would be issued for houses and investment loans. Meanwhile, according to investinginafrica.net, the Dar es Salaam Community Bank (DCB) has emerged the fifth among the top ten best performing stocks in Africa for the year 2011. All the top ten winning companies averaged weekly trading volumes in excess of $10,000 during the year 2011. Dcb which started operations nine and half years ago, focuses on lending to small and medium enterprises. Dcb management boosted its 2010 dividend by 71 per cent. A statement issued by peter machunde, ceo of vertex securities, brokers of the dse the bankfs earning also increased by 23 per cent in the first nine months of 2011, propelled by a big gain in net interest income.