MWANZA: MWALIMU Commercial Bank (MCB) is positioning itself to benefit from Tanzania’s growing cashless economy, as the lender reports rising deposits, loan growth and a return to sustained profitability after years of losses.
MCB Chief Executive Officer Richard Makungwa said they have aligned its future growth strategy with the implementation of the Vision 2050, placing digital financial services at the centre of its plans, “We have already focused on advancing digital payment systems and promoting a cashless economy.
Our major goal is to continue improving our financial service delivery platforms,” he said during the 10th Annual General Meeting in Ilemela Municipality, Mwanza, recently.
The lender has accumulated customer deposits of 75.1bn/- and extended loans worth 70bn/- since its establishment, reflecting steady growth in its core banking business. Mr Makungwa said the bank posted a pre-tax profit of 500m/- last year, exceeding the 440m/- projected in its annual budget.
The improved earnings mark a turnaround for the lender, which has spent recent years rebuilding its financial position after a prolonged period of losses.
“Six years ago, we were recording substantial losses, but three years ago we started making profits and have continued to improve ever since,” he said.
MCB’s balance sheet has also expanded significantly, with total assets rising from 30bn/- to 100bn/- over the past few years, underscoring stronger business activity and customer growth.
According to Mr Makungwa, the bank recently completed a capital-raising exercise aimed at strengthening its financial base and supporting future expansion.
He said MCB was established primarily to provide teachers with easier access to affordable loans and continues to maintain that focus. The bank is also seeking to broaden its lending footprint beyond its traditional customer base by increasing support for agriculture and small businesses.
“Currently, we are working closely with small and mediumsized enterprises while continuing to serve teachers, who remain the foundation of the bank and a significant segment of our customer base,” he said.
He added that agricultural financing remains a priority through partnerships with institutions supporting the sector.
MCB Chairman Francis Ramadhan said the lender’s assets stood at 97.7bn/- while customer confidence remained strong despite operating challenges facing the banking industry.
He said earnings per share rose to 5.7 per cent from 2.1 per cent, reflecting improved profitability and operational performance.
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“Despite these achievements, retained earnings remain relatively low because the bank is still rebuilding its capital base following losses incurred in previous years,” he said.
Investor confidence has also strengthened, with the bank’s share price climbing from 310/- to 1,600/- by April this year, although the stock experienced periods of volatility.
Mr Ramadhan said the lender continued to strengthen governance and risk management systems in 2025 through enhanced internal controls, anti-money laundering measures, information security safeguards and customer data protection mechanisms.
“These initiatives were aimed at reducing operational risks and enhancing transparency and accountability across all bank operations,” he said.
Officiating at the meeting, Minister of State in the Prime Minister’s Office responsible for Labour, Youth, Employment and Persons with Disabilities, Deus Sangu, praised the bank for supporting financial inclusion and contributing to social development, particularly through programmes benefiting women and the education sector.
“This theme clearly demonstrates that success cannot be achieved through the efforts of one individual alone, but through cooperation among shareholders, directors, management, employees and other stakeholders,” he said.
He said the bank’s anniversary theme, “10 Years, Growing Stronger Together,” reflects the broader development agenda championed by President Dr Samia Suluhu Hassan’s administration.
“The bank should develop robust strategies to increase access to loans and financial products for teachers, youth, women and small-scale entrepreneurs in order to stimulate economic growth and reduce poverty,” he said.