Financial Crime World

Tanzania Banking Sector Reports Strong Growth in 2022

DAR ES SALAAM, Tanzania - The Tanzanian banking sector has reported a strong growth in 2022, driven by an increase in customer deposits and a decline in interest expenses.

Key Highlights

  • Total assets grew by 12.1% year-on-year, reaching TZS 46 trillion (approximately USD 20 billion) as of December 31, 2022.
  • Customer deposits accounted for 66.7% of total liabilities, down from 70.2% in 2021.
  • Loans, advances, and overdrafts continue to be the largest component of total assets, making up 56.7% of the sector’s balance sheet.

Funding Structure

The sector’s funding structure remains largely unchanged:

  • Customer deposits: 66.7% of total liabilities
  • Loans, advances, and overdrafts: 56.7% of total assets
  • Investment in government securities: 17.6%
  • Cash and balances with the Bank of Tanzania (BoT): 11%

Profitability

In terms of profitability, the banking sector reported a net income after provisions of TZS 2.391 trillion (approximately USD 1 billion) in 2022, up from TZS 1.819 trillion in 2021.

  • Non-interest income also grew significantly, reaching TZS 1.363 trillion (approximately USD 600 million) in 2022, driven by an increase in fees and commissions.

Industry Insights

  • The banking sector has continued to perform well in 2022, despite the challenges posed by rising inflation and interest rates.
  • The number of employees in the banking sector increased to 16.731 as of December 31, 2022, up from 16.060 in 2021.

Key Statistics

  • Total assets: TZS 46 trillion (approximately USD 20 billion)
  • Customer deposits: 66.7% of total liabilities
  • Loans, advances, and overdrafts: 56.7% of total assets
  • Investment in government securities: 17.6%
  • Cash and balances with BoT: 11.0%
  • Non-interest income: TZS 1.363 trillion (approximately USD 600 million)
  • Net income after provisions: TZS 2.391 trillion (approximately USD 1 billion)