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Banks kick off 2025 with earnings bonanza
Tanzania’s banking industry has kicked off 2025 with rising profitability driven by double-digit growth in both funded and non-funded income during the first quarter of the year. PHOTO | FILE
What you need to know:
- Top banks saw higher profitability driven by double-digit growth in both funded and non-funded incomes during the first quarter of the year
Dar es Salaam. Tanzania’s banking industry has kicked off 2025 on a strong footing, with rising profitability driven by double-digit growth in both funded and non-funded income during the first quarter of the year.
An analysis by The Citizen of financial statements from 22 commercial banks reveals that the industry posted solid performance figures, signalling the likelihood of another record-breaking year for the country’s lenders.
Non-funded income—which encompasses fees, commissions and other service charges—increased by 15 percent, while interest-based income rose by 13 percent compared to the same period in 2024.
This performance pushed the industry’s net profit up by nine percent, climbing from Sh528.96 billion in Q1 2024 to Sh577.28 billion in Q1 2025.
The banks covered in the analysis include CRDB, NMB, NBC, Exim, Stanbic, PBZ, Azania, Standard Chartered, DTB, TCB, Absa, KCB Bank Tanzania, Citibank, Equity, BoA Tanzania, Ecobank, Bank of Baroda, I&M, NCBA, Maendeleo, DCB and TADB.
The momentum builds on last year’s milestone when the industry’s net profit exceeded the Sh2 trillion mark for the first time in the country’s history.
In terms of percentage growth rate during the two comparable periods (Q1 of 2025 to Q1 of 2024), Equity Bank led with a 235 percent increase, posting a net profit of Sh8.4 billion in Q1 2025, up from Sh2.4 billion in Q1 2024. I&M Bank followed with a 150 percent rise, reaching Sh4.4 billion from Sh1.8 billion, while Tanzania Agricultural Development Bank (TADB) recorded a 101 percent growth, attaining Sh6 billion.
Azania Bank and DTB each registered a 51 percent rise in profits. DTB’s net profit reached Sh13 billion in Q1 2025, up from Sh8.8 billion, while Azania posted Sh11 billion, up from Sh7.3 billion during the corresponding period in 2024.
CRDB Bank reported a 36 percent increase in net profit, reaching Sh173.4 billion, while NMB Bank posted a 15 percent rise to Sh184.1 billion, compared to Sh160.4 billion during the Q1 of 2024. NBC closed the quarter with a net profit of Sh38 billion, a 15 percent increase from Sh33 billion recorded in Q1 2024.
Net interest income for Q1 2025 stood at Sh1.03 trillion, up from Sh915.31 billion in Q1 2024. Non-funded income increased to Sh628.54 billion from Sh546.43 billion year-on-year.
Notable performers in interest income included Azania Bank, which posted a 55 percent rise to Sh35.5 billion; DCB, which increased by 49 percent to Sh4.1 billion; and I&M Bank, up 45 percent to Sh20.25 billion.
In terms of non-interest income, Bank of Baroda recorded a 90 percent surge to Sh1.2 billion, followed by CRDB at 46 percent (Sh188.4 billion), and Equity Bank at 34 percent (Sh15.3 billion). Several institutions, including NMB, TADB, and PBZ, registered balanced growth across both income streams.
CRDB Bank Group CEO and managing director Abdulmajid Mussa Nsekela reaffirmed the bank’s commitment to expanding its eco-payment and value chain solutions, which have enhanced operational efficiency and customer convenience.
“We are pleased to see a positive shift in our income profile, with non-interest income showing encouraging growth. This reflects our commitment to enhancing digital channels and introducing innovative payment solutions,” said Mr Nsekela.
He cited sustained investment in mobile banking (Simbanking), agent networks, and digital wallets—often in collaboration with mobile network operators—as key drivers of customer reach and seamless transactions.
“These efforts form part of our broader strategy to diversify income streams, improve customer experience, and contribute to Tanzania’s economic growth through innovative financial services,” he added.
Tanzania Bankers Association (TBA) chair Theobald Sabi echoed the sentiment, noting that the industry’s growth signals a shift in business models.
“The growth in non-interest income across the banking industry in the first quarter of 2025 is a strong indicator of our industry’s evolving business model. It reflects deliberate efforts to diversify revenue streams beyond traditional interest income,” he said.
Mr Sabi attributed the growth to increased uptake of digital services, agency banking, bancassurance, and transaction-based offerings. He also highlighted the importance of financial inclusion in strengthening the industry’s performance.
“We commend the government, the Bank of Tanzania, and our partners for their continued commitment to financial inclusion and for creating an enabling environment for sustainable banking growth.”
However, financial experts have urged caution.
Dr Tobias Swai of the University of Dar es Salaam stressed the importance of maintaining focus on core lending activities.
“As we can see, service charges have risen, which suggests a need for banks to place greater emphasis on loans and lending activities as their core business,” he said, noting that non-interest income should complement—not overshadow—traditional banking operations.
Dr Swai also called for strong regulatory oversight to ensure customer protection and maintain the financial sector’s stability.
