BANK OF AFRICA - TANZANIA (BOA-TANZANIA) performance for 2017 showed mixed results in differentaspects. During the year ended 31 December 2017, BANK OF AFRICA - TANZANIA Limited recorded a pre-tax profit of TZS 4.9 billion (2016: TZS 5.6 billion) Profit after tax (PAT) decreased by 28% from TZS 3.7 billion to TZS 3.1 billion. The decline was attributed to the challenging business environment across the Tanzania banking industry which notably affected our foreign exchange trading income and increased our cost of risk by almost twofold.
The ratio of non-performing loans to gross loans increased from 4.96% at the end of prior year to 11.0% at the end of the reporting period. This ratio is lower than the industry average ratio of 12.5%. The credit selection, appraisal and approval processes, complemented by strong relationships with customers have ensured that potential credit delinquencies are identified and managed at an early stage. This arrangement has proved
to be beneficial to the Bank and its customers.