Mwanga-Hakika Bank Limited (MHB) recorded a robust financial performance in 2024, with net profit soaring by 53 percent to 9.9bn/-, up from 6.5bn/- in 2023. This strong earnings growth reflects the bank’s continued expansion in both funded and non-funded income streams.

According to its audited financial results for the year ended December 31, 2024, the bank’s earnings per share rose sharply to 2,326/- from 1.902/- in the previous year — an increase of 22 percent.

Net interest income before impairment charges grew to 18.2bn/- from 13.5bn/- in 2023, while non-interest income rose to 9.9bn/-, up from 7.2bn/-. This income diversification supported a 46 percent rise in operating profit before tax, which climbed to 14.6bn/- from 10bn/-.

The bank also strengthened its operational capacity, increasing its workforce to 151 employees from 124 a year earlier. It operates through seven branches nationwide, with outlets in Dar es Salaam (2), Kilimanjaro (3), and one each in Arusha and Dodoma.

Total assets surged to 324.9bn/- as of year-end 2024, a significant rise from 208bn/- a year earlier. This growth was driven by increased lending to various economic sectors, an expansion in other income-generating assets and cash and cash equivalents holding.

The loan book expanded to 199.5bn/- from 131.4bn/-, while interbank receivables rose to 24.3bn/-, up 20 percent year-on- year.

Cash and balance with the BoT has increased to 21.9bn/-, while placements and balance with other banks jumped to 69.2bn/- from 35.0bn/-. Investments in government securities also rose to 18.5bn/- from 14.5bn/-, highlighting the bank’s prudent income allocation strategy.

Other assets increased by at least 20 percent to 10bn/- during last year from 8.7bn/- recorded during the previous year, while investment in other securities gained to 725m/- from 500m/- respectively.

Notably, the bank successfully lowered its non-performing loans (NPLs) ratio to below 1 percent, below the regulatory benchmark of 5 percent—underscoring the quality of its credit portfolio.

Customer deposits saw a 51 percent year-on-year increase to 214.8bn/-, up from 142.2bn/- in 2023. Deposits from other banks and financial institutions nearly doubled to 41.8bn/- from 22.8bn/-.

Shareholders’ equity closed the year at 48.3bn/-, up from 29bn/- in 2023. The growth was attributed to an increase in paid-up share capital, more than double the retained earnings, and a strong profit performance.

Paid up share capital expanded to 26bn/- from 17bn/-. While retained earnings has increase to 22.06bn/- from 12.08bn/- respectively.

The financial indicators performances show that shareholders’ funds to total assets slightly gained to 15 percent last year from 14 percent recorded in 2023, while assets growth jumped to 56 percent from 79 percent respectively.

Mwanga-Hakika Bank was established in 2020 through the merger of Mwanga Community Bank Limited, Hakika Microfinance Bank Limited, and EFC Tanzania Microfinance Bank. The bank is serves and offering a broad range of financial services to individuals, MSMEs, and corporate clients.

Following the merger, MHB has evolved into a dynamic mid- tier bank with a solid growth trajectory and a promising outlook in Tanzania’s financial landscape.