NMB Integrated Annual Report 2023

Integrated
Annual Report
For the year ended 31 December 2023
TOUCHING LIVES
EMPOWERING COMMUNITIES
TOUCHING LIVES
EMPOWERING COMMUNITIES
About this Report
Purpose of this report

This report aims to clearly explain our dedication to creating sustainable value for our stakeholders. We strive
to present a complete perspective of our role as a financial service provider and a responsible contributor to
our community.
The report provides a detailed account of our business operations, strategic approach, and financial and
non-financial performance throughout the year. Additionally, we shed light on corporate governance, risk
management, and the overall context in which we operate.
The report, covering the period from 1 January 2023 to 31 December 2023, highlights our progress in
alignment with our key objectives and emphasizes our unwavering commitment to positively impacting
crucial areas central to our bank’s focus.
Our goal is to transparently communicate our efforts and accomplishments, as well as our ongoing
dedication to responsible banking practices. We aim to ensure that stakeholders have a comprehensive
understanding of our journey towards creating sustainable value.
Reporting Boundary
NMB Bank Plc’s comprehensive reporting encompasses financial and non-financial information detailing the
bank’s core banking activities, performance metrics, and strategic narrative aligned with the bank’s robust
business model.
Reporting Framework
The Financial information in this report has been prepared as per the International Financial Reporting
Standards (IFRS). Our reporting procedures are guided by the current guidelines and regulations set forth by
various governing bodies, such as the Bank of Tanzania’s (BOT) prudential guidelines, the National Board
of Accountants and Auditors (NBAA), the Capital Market and Securities Authority (CMSA), and the Dar es
Salaam Stock Exchange (DSE) rules. To ensure the quality of our content, we have incorporated principles
from the Integrated Reporting Framework. We are dedicated to continuously improving our reporting process
to align with the latest guidelines and international best practices, with the ultimate aim of achieving full
adherence to Integrated Reporting Framework.
Combined Assurance
Both management, internal audit, and external audit conducted comprehensive reviews to guarantee
accuracy in reporting and disclosures. The Board and Board Committees played their respective roles in
overseeing this process. The report includes specific details extracted from the consolidated annual financial
statements audited by Deloitte & Touche.
Reporting Period
The annual Report covers the period from 1 January 2023 to 31 December 2023 and is published annually.
Any material events occurring after this timeframe and up to the report’s approval by the Board of Directors
of NMB Bank have been duly considered and communicated.
Financial and non-financial reporting

The Report goes beyond just financial reporting by offering an analysis of the organisation’s non-financial
performance and its positioning in relation to key stakeholders, who play a crucial role in its value-creation
capabilities.
Report content and materiality.

The inclusion of information in this Report is determined by our application of the materiality concept. We
deem any subject to be material if it has the potential to greatly influence revenue generation, value creation,
and the corporate culture of the Bank.
Director’s Responsibilities
The Board prepared and presented the information in the report and acknowledges its responsibility for
ensuring its integrity. The report provides relevant stakeholders with material information. The Board
approved this Annual Report on 24 May 2024.
Table of Contents
OVERVIEW 1 SUSTAINABILITY AGENDA 110

NMB at a Glance 3 Our long-term value creation purpose 111
About NMB 9 Sustainability Model and Strategy 113
Creating Stakeholder Value 11 Progress on Sustainable Development
Goals (SDGs) 121
Our Value Creation Model 15
Sustainabilty Pillars 129
The Value We Impacted 19
STRATEGY REVIEW 24 CORPORATE GOVERNANCE 144

Bank Strategy 25 Our Board of Directors 147
Chairman’s Statement 31 Our Executive Team 155
CEO’s Statement 43
CFO’s Statement 51
RISK REPORT 160
Risk Update 161
BUSINESS SEGMENTS REVIEW 68
Retail Banking 69 REPORT OF THOSE CHARGED WITH
Wholesale Banking 79 GOVERNANCE AND AUDITED
FINANCIAL STATEMENTS 178
Treasury 83
INVESTING IN DIGITAL ANNEXURE 414

TRANSFORMATION 88
24th AGM notice 415
Technology Review 89 Key contacts 416
Our Digital Story 95
OUR PEOPLE 102

Human Resources Overview 103
Abbreviations
ACCA Association of Chartered Certified EPS Earnings per Share

Accountants
ERP Entreprise Resource Planning
ACPA Associate Certified Public
ESG Environment, Social and Governance
Accountant
FMO Financierings - Maatschappij voor
AGM Annual General Meeting
Ontwikkelingslanden N.V
ALCO Assets and Liabilities Committee
FVOCI Fair Value through Other
ALM Assets and Liabilities Management Comprehensive Income
BARCC Board Audit, Risk and Compliance FVTPL Fair Value through Profit or Loss
Committee
FYDP Five Year Development Plan
BIA Basic Indicator Approach
GCRI Global Climate Risk Index
Bn Billion
GDPR General Data Protection Regulation
BOT Bank of Tanzania
GDP Gross Domestic Product
CASA Current and Savings Accounts
GePG Government Electronic Payment
CCPs Cash Collection Points Gateway
CDIoDT Certified Director by the Institute of GHG Greenhouse Gases

Directors of Tanzania
HVAC Heating, Ventiliation and Air
CEO Chief Executive Officer Conditioning
CIA Certified Internal Auditor IASB International Accounting Standards

Board
CPA Certified Public Accountant
ICT Information and Communication
CSI Corporate Social Investment
Technology
DSEI Dar es Salaam Stock Exchange or
IESBA International Ethics Standards Board for
Share Index
Accountants
DSS Direct Sales Staff
IFC International Finance Corporation
EAC East African Community
IFRS International Financial Reporting
EXCO Executive Committee Standards
EAD Exposure at Default IMF International Monetary Fund
ECL Expected Credit Losses ISA International Standards on Auditing
EIB European Investment Bank ISIN International Securities Identification

Number
LC Letters of Credit SADC Southern African Development
Community
LDR Loans to Deposits Ratio
SICR Significant Increase in Credit Risk
LGD Loss Given Default
SME Small and Medium Enterprises
LIBOR London Interbank Offered Rate
SMR Statutory Minimum Reserve
LTFR Long-term Funding Ratio
SORF Secured Overnight Financing Rate
MBA Master’s Degree in Business
Administration SPPI Solely Payments of Principle and
Interest
MNO Mobile Network Operator
SPV Special Purpose Vehicles
Mn Million
SWL Salaried Workers’ Loan
MTN Medium Term Note
TFRS-1 Tanzania Financial Reporting Standards
MTP Medium Term Plan
Number -1
MSE Micro and Small Enterprises
TMRC Tanzania Mortgage Refinance Company
MSME Micro, Small and Medium Enterprises Limited
NAV Net Asset Value Tn Trillion
NDC National Development Council TSI Tanzania Stock Index
NGO Non Governmental Organization TZS Tanzanian Shillings
NHIF National Health Insurance Fund UJVC Upanga Joint Venture Company
NMB NMB Bank Plc UNDP United Nations Development

Programme
NPL Non-Performing Loan
UTT Unit Trust Tanzania
NSSF National Social Security Fund
USD United States Dollars
OCI Other Comprehensive Income
USSD Unstructured Supplementary Service
PD Probability of Default Data
POCI Purchased or Originated Credit-Impaired WEO World Economic Outlook
PDPA Personal Data Protection Act
PSSSF Public Service Social Security Fund
QR Quick Response
Overview
We are Tanzania’s leading financial

solutions provider, renowned for our
consistent financial achievements
and significant value generation. Our
remarkable transformation and impactful
operations journey in Tanzania has
Record
spanned over 25 years. Revenue
1.4
Record
Profit After Tax
TZS Trillion
545
TZS Billion
1 | NMB Integrated Annual Report 2023

Largest Customer
Base
7+ Non Funded
Million
Income
468 Cost to Income

Ratio (CIR)
39%
TZS Billion
NMB Integrated Annual Report 2023 | 2

Overview
Scale and stability

NMB at a
Glance A Vast Network
Total Branches Wakala Outlets

NMB is the leading and most
profitable financial institution in 231 28,295
Tanzania. We play a pivotal role in
driving inclusive and sustainable
ATMs Cash Collection Points
socioeconomic growth in Tanzania.
Sustainability is a core facet of our
operations and strategic focus. We
715 54
remain committed to supporting
our valued customers, employees, Customers Employees
shareholders, and the community

for shared prosperity towards a
7.1 Mn+ 3,642
more sustainable future.
Total Assets
(TZS Tn)
2023 12.2
2022 10.3
2021 8.7
Stable ownership structure with

33% Free Float (Public Investors)
33.30% 34.90%
500 Mn
Shares
31.80%
ARISE B.V Treasury Free Float

Registrar
A leading market position in Tanzania
TZS 2.25 Tn 24.1% 21.8%

Market capitalisation (as Market Share in Market Share in
at 31 December 2023) Net Loans Customer Deposits
84%
Net Promoter Score (NPS)
59 59 59
Customers onboarded
digitally in 2023
2021 2022 2023
Organisational strength
• Robust governance structure with a well-

experienced Board. Awards
Named as the Safest Bank in
• Stable and experienced Executive
Tanzania 2023
Management driving the effective execution (Global Business & Finance Magazine)
of the bank’s strategy.
Named the Best Bank in Tanzania
• Highly engaged and motivated workforce with
diverse skills and expertise. • Euromoney Banking excellence
awards 10x times in 11 years
• Committed to diversity, inclusion, and equity. • Global Business & Finance Magazine
Ranked as the Best Employer: Gender
• Banking excellence awards
Equality and Equity (Association of Tanzania
Employers). • Business and Finance Magazine
80% 48% 4x 1 3x
Employee Engagement Female Best Bank Best Digital Bank Best Retail Bank
Score employees Awards Award Awards
Best-practice to Sustainability
TZS 400 Bn
• Support the transition to a net zero economy
and manage climate change risks.
• Operate a responsible business with the

The sustainable finance pledge involves the funds raised
highest ethical standards to preserve integrity from issuing Jamii Bonds for sustainable credit-linked
and trust. projects.
• Inaugural Sustainable bond issued to finance

sustainable projects.

Creating Long-Term Value for Shareholders
Growing Institutional Strength
Net Profit (TZS Bn) Total Capital Ratio (%)
CAGR: +40% CAGR: +589bps

545
432 24.63 23.09 23.26
210 292 20.63
145 18.51
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Net loans and advances and customer deposits (TZS Tn)
CAGR: +15%
CAGR: +21%
7.6 8.5 7.7
6.7 6.0
5.3
4.9 3.6 4.1 4.7
2019 2020 2021 2022 2023
Deposits Loans
Long -Term Shareholder Value Creation
Dividend Paid (TZS Bn) Basic Earnings per Share (TZS)
181
143
69 97
48
1,090
584 863
420
289
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Dividend per Share (TZS) Share Price Movement

361
286
137 193
96
49% 92% 64%

2019 2020 2021 2022 2023 1 - Year (% change) 3 - Year (% change) 5 - Year (% change)

Differentiators
1
Client-focused: At NMB, our core values are
embedded in understanding and catering to our
clients’ needs. Our distinct value proposition is
delivering personalised financial solutions aligning
with their goals and aspirations. Through continuous
engagement and feedback, we ensure our services
evolve in tandem with our clients’ requirements.
4
2 A socially responsible business: Our ethos
embraces social responsibility. We are committed
Distinct Value Proposition: Our deep-rooted to making a positive impact in the communities
local presence, unique understanding of our we serve. Our initiatives encompass sustainable
client’s needs, world-class technology, and digital practices, community development programs, and
innovations allow us to offer tailored propositions. ethical investment strategies to create a better future
for all stakeholders.
3
Focus on Operational Efficiency and Prudent
5
Cost Management: We pride ourselves on A highly performing and engaged workforce:
managing costs judiciously while maintaining Our success stems from our people. We cultivate
an unwavering focus on operational efficiency. a culture of performance excellence, fostering an
This approach allows us to optimise resources, engaged and motivated workforce. By investing
enhance service quality, and provide our clients in their growth, development, and well-being, we
with competitive services without compromising ensure that our team delivers the highest standards
on excellence. of service and innovation.
6
Robust risk management: Mitigating risks is at
the heart of our operations. We employ robust risk
management frameworks, leveraging cutting-edge
technology and comprehensive strategies, which
safeguards our clients’ interests and the bank’s long-
term stability.

Assets
12.2
TZS Trillion
ROE
29%
ROA
5%

Overview
About NMB
Ways of Banking
Our Vision Branches & ATMs

With a widespread physical presence
To be the preferred financial services partner.
spanning the country, we operate
Our Mission Branches ATMs
To be the Bank of choice, delivering an

innovative and transformative customer
231 715
experience that promotes financial inclusion
and wellbeing.
Agency Banking (WAKALA):
Our extensive agency banking network
Our strategic goals
complements our robust physical
28,295
Create long-term Customer Experience. channels.
Agent outlets
Our values
• Integrity
Mobile Banking (NMB Mkononi):
• Compliance Access various banking services,
• Customer Focus money transfers, and payments easily
• Teamwork via *150*66# or the NMB Mkononi App
• Innovation
Internet Banking (NMB Direct):

Our Strategic Pillars Our Internet Banking platform ensures
the seamless fulfillment of our
• Winning Proposition customers’ banking needs.
• Operational Efficiency
• Innovate For the Future Cards, POS, QR Codes:
• We offer diverse payment solutions,
Business Segments including over 111,000+ QR codes
Retail Banking Cards POS devices
Wholesale Banking
4.1 Million +3,300
Treasury Banking
Call Center, chat banking:

Customers benefit from our Call
Center for inquiries, service, sales,
and Interactive Voice Response (IVR)
features. Secure banking via WhatsApp
chat is also available.

Our strengths Delivering Stakeholder Value
Leadership Employees
NMB leverages the expertise of a seasoned Rewarding careers,
Board of Directors, backed by a proficient competitive remunerations
Executive Management Team, that actively
and rewards with professional
foster a thriving organizational culture and
guarantee strategy execution. development.
Talent
The Bank has a diverse workforce of more Customers
than 3,600 individuals, brought together Safeguarding and expanding the
by shared principles and a culture that financial assets of individuals,
promotes inclusivity and excellence.
private and public institutions
Innovation and partnerships
NMB consistently improves its technological
base, including digital capabilities to enhance
Community
accessibility, streamline processes, and
ensure utmost security in banking. Contributing to the nation’s
socio-economic progress, the
Service Excellence Bank is dedicated to supporting
NMB is devoted to grasping customer endeavors that foster a robust
needs and utilizing data-driven insights and and enduring economy under the
innovation to offer an exceptional customer guidance of Tanzania’s leadership
experience. vision.
Governance
The Bank possesses a robust and efficient
Regulators and the Government
governance structure founded on the most
global benchmarks. This structure serves Engaging with relevant authorities
as the bedrock for achieving sustained to support a conscientious
prosperity and showcases the honesty and regulatory framework.
openness that our stakeholders deserve.
Resilience
We are a domestic, systemically important Investors
bank with total assets exceeding TZS 12.2 Providing robust returns and
trillion, robust liquidity, and strong credit
long-term value to investors.
ratings.
A responsible bank
The Bank strongly emphasizes sustainability Suppliers
within its strategic priorities. We are dedicated
Collaborating with our suppliers,
to enhancing NMB’s role in supporting
Tanzania’s goal of fostering an inclusive and providing them with avenues for
environmentally friendly economy through shared prosperity.
various CSI and ESG projects.
Brand
NMB possesses significant brand equity
and entices an expanding customer base of
7.1 million individuals. NMB Integrated Annual Report 2023 | 10
Overview
Creating Stakeholders Value
Investors Employees
How We Create Value How We Create Value
NMB Bank is committed to delivering robust We deeply acknowledge that our workforce is the
returns and fostering long-term sustainable value cornerstone of our performance and productivity.
for our esteemed investors. Our commitment to fostering a diverse tapestry
of cultures and experiences sets us apart.
How We Serve & Engage We’re nurturing a future-ready workforce to
adapt to evolving client needs and technological
Our business model thrives on capital from debt
advancements.
and equity investors, which is pivotal in executing
our strategic vision. We ensure transparency Collaborating with our employees, we’re co-
by providing investors with comprehensive creating an inclusive, innovative, and client-
progress updates against our strategic and centric culture that fuels ambition, action, and
financial frameworks, whether within short - or accountability.
long - term horizons. Furthermore, our footprint
and sustainability initiatives, such as Jamii How We Serve & Engage
Bond, expose investors to emerging market
opportunities. Our regular engagement with employees through
multiple channels is the bedrock for superior client
Looking ahead to 2024, our engagement with service and upholding our Purpose and Values.
investors will continue, updating on our strategic A culture embedded in inclusivity and ambition
priorities, financial framework progress, and our enables us to unlock innovation and execute our
trajectory towards target returns. business strategy.
Their Interests Their Interests
• Safe, strong, and sustainable financial • Meaningful and impactful roles

performance.
• Opportunities for innovation within diverse
• Sustainable finance aligned with the UN markets and clientele
Sustainable Development Goals.
• Cultivation of a brand that sustains commerce,
• Progress on ESG matters, including offering enriching careers and growth
advancements in climate-related issues.
• Support from exceptional people leaders,
underpinned by competitive rewards and a
positive work-life balance.
TZS 361 9.5% TZS 386 Mn

Dividend Per Share Jamii Bond Coupon
Rate TZS Tranche Productivity per staff
8.5% Jamii Bond

Coupon Rate -
6 Month USD Term
80%
Jasiri Bond Coupon SOFR + 2.5% for
Employee Engagement Score
Rate USD Tranche

Customers Suppliers
We aim to generate value by providing easily NMB Bank is dedicated to fortifying our operations
accessible banking solutions that cater to by consistently providing efficient, sustainable, and
everyday needs while ensuring affordability and value-driven goods and services through supplier
exceptional customer service. We empower engagements.
individuals to nurture and safeguard their finances,
assist businesses in various operations, such as How We Serve & Engage
trading, transactions, investments, and growth,
and extend our support to various financial Our supplier engagement strategies are guided
institutions, including banks, the public sector, and by stringent selection, due diligence, and
development organizations. contract management processes that align with
our policies and standards. Strengthening our
How We Serve & Engage supplier governance underscores our proactive
risk mitigation and regulatory compliance stance.
Our approach revolves around innovative products Furthermore, our Procurement policies shade our
and seamlessly integrated digital services, which unwavering commitment to ethics, human rights,
are fundamental to achieving an unparalleled diversity and inclusion (D&I), and environmental
client experience. This involves enhancing our performance. Incoming suppliers align with these
capabilities to safeguard clients against emerging principles, reinforced through standard contract
risks in the ecosystem, such as fraud and templates and periodic engagements emphasizing
cybersecurity, accompanied by robust education on ethics, compliance, and sustainability.
initiatives and enhanced communication channels.
Their Interests
Looking ahead to 2024, we remain committed to
actively listening to and addressing customers • Sustainability and diversity
feedback and concerns, furthering our digital
transformation and innovation endeavors, and • Fair and Transparent tendering processes
aiding our clients as they transition towards
sustainable practices, including pursuing net-zero • Encouragement of supplier-driven innovations
objectives.
• Timely and accurate payments.
Their Interests
• Timely dispute resolution
• Offering unique and differentiated products
and services
• Providing digitally driven and enriching

customer experiences
• Promoting sustainable finance initiatives
• Facilitating access to financial resources
1.2 Mn
New Customers
59 4
Net Promoter Score New Branches

Creating Stakeholders Value
Regulators & The Government Community
NMB Bank proactively collaborates with public NMB Bank is steadfast in its commitment to
authorities to fortify the financial system’s operate as a socially responsible and sustainable
effectiveness and promote stability and entity. By collaborating with local partners,
sustainable growth. we actively contribute to fostering social and
economic development within our communities.
How We Serve & Engage
How We Serve & Engage
Throughout 2023, we engaged with governments,
regulators, and policymakers, focusing on Engagement forms the cornerstone of our strategy,
sustainability, digital innovation, cybersecurity, where we actively collaborate with a diverse
and regulatory frameworks. Our Compliance spectrum of civil society, international partners,
and Regulatory Affairs team ensures alignment and local NGOs. This collaboration spans a
between advocacy and business strategies. In multitude of areas, ranging from environmental
November 2023, NMB Bank Plc emerged as the and public policy concerns to community-driven
national overall winner, recognised as the largest initiatives. Constructive dialogues enable us to
taxpayer in Tanzania and the most compliant comprehend alternative viewpoints while ensuring
taxpayer for the second year. a mutual understanding of our business approach.
Our engagements address specific client needs,
Their Interests transactions, or policy concerns highlighted by
partnering development partners.
• Strong capital and liquidity positions
Their Interests
• Stringent standards for conduct and
combating financial crime • Climate change and environment
• Healthy economies and competitive markets • Human rights
• Positive, sustainable development • Financial inclusion
• Digital innovation in financial services • Social Impact
• Operational resilience and customer
protection.
TZS 4.2 Bn
CSI Spent
TZS 2 Bn
Climate Action Budget
TZS 436 Mn
Amount on Nuru Yangu Scholarship

Overview
Our Value Creation

Model
Capital Input
Financial Capital
Our financial capital forms the bedrock for sustaining and expanding our business operations. It fuels
our growth initiatives, generates sustainable returns, and enhances stakeholders value.
Human Capital
Comprising our skilled workforce, ingrained organisational culture, and collective expertise, our
human capital is pivotal in innovating solutions tailored to our customers’ needs. Our people are the
driving force behind realising our Bank’s vision.
Intellectual Capital
Our intellectual capital encompasses technological innovations, robust systems and processes, and a
heritage-backed strong brand identity.
Manufactured Capital
Our manufactured capital provides a competitive edge, including physical assets like property and
digital assets such as IT systems, enabling us to deliver enhanced value to stakeholders.
Social & Relationship Capital

Our social and relationship capital thrives on fostering diverse relationships within our communities
and across stakeholders, nurturing an ecosystem for mutual growth.
Natural Capital
Referring to the resources we utilise to sustain operations, our natural capital reflects our commitment
to responsibly leveraging resources to create lasting value for our stakeholders.

Trade Offs
Financial Capital
Shareholder value surged through a substantial increase in net profits, driving robust returns for our
investors. Our strategic focus remains on striking a delicate equilibrium between maximizing immediate
financial gains for shareholders and the imperative investment required for our sustained long-term
growth.
Human Capital
Investing in our workforce constitutes a significant yet essential cost, vital for attracting, retaining, and
nurturing talent. While these investments impact short-term financial capital, they yield substantial long-
term returns across various other capitals.
Balancing increased automation of solutions, which impacts both intellectual and manufactured capital,
against driving client adoption of digital solutions that elevate client experiences poses a trade-off. This
challenge intersects with the need for human interaction, a critical aspect of our human capital.
Efforts to automate solutions and drive digital adoption for superior client experiences through digital
platforms present a trade-off. We recognize the importance of direct human interaction, particularly
through physical branches, in complementing these digital advancements.
Social & Relationship Capital

Strategically managing diverse stakeholder relationships involves navigating trade-offs to uphold
various stakeholders’ interests while maintaining quality relationships across all fronts.
Natural Capital
Balancing the utilisation of natural resources, which sometimes negatively impacts human and social
capital, remains a critical trade-off. Our commitment lies in minimizing environmental impacts while
striving to deliver positive environmental outcomes for society.

Overview
Our Value Creation Model

Inputs Outputs
Customer Total Total Net Profit

Deposits Equity Revenue After Tax
Financial
8.47 2.09 1.40 545

TZS Trillion TZS Trillion (TZS Trillion) TZS Billion
(11.47% YoY) (23.8% YoY) (26% YoY)
Staff Training Staff Employee Staff

Employees
Budget Benefits Engagement Score Attrition
5.3 298 80% 3.5%

TZS Billion TZS Billion 2022:75%
Intellectual Capital Intellectual Capital

Intellectual
#1 2x 96% 99%
Most Best Innovation in Share of transactions Stable digital
Innovative Retail Banking in performed on digital platforms-Service
Tanzania channels Uptime
Manufactured
Branches ATMs Customer Accounts Net Promoter Score
231 715 7.1+ Mn 59

(2022: 6+ Million)
Social & Relationship
CSI & Climate Sustainable

Action Budget Fund Raised Tax Payment Scholarship
6.2 400 555 130

TZS Billion TZS Billion TZS Billion (21% YoY) Funded Students
Premises retrofitted with LED lights

Natural
Air, Water, Land, Mineral & Forest

175
Premises/Facilities/Branches

Outcomes CONSOLIDATED VALUE ADDED
STATEMENT
Superior returns for shareholders
Return on Dividend per 29% 19%

Equity Share
29% 361
29% 20%
FY23
(2022: 25%) (2022: 286)
TZS
FY22 1.224 Tn
Productive, efficient, and effective workforce TZS 1.022 Tn
Staff Productivity Revenue per FTE 14%
15%
6.2x 386
2022:5.4x (TZS Million)
37%
Intellectual Capital 38%
0 +20
Major Cyber Security Digital & Technology Employees Shareholders
Incidents intiatives launched
Government Reinvested
- Optimised resource utilisation and

maximised financial utility
- Customer service excellence
- Contribution to community empowerment
- Employment and Entrepreneurship
- Financial Inclusion
- Mitigating our carbon emissions and

minimising our ecological footprint

Value Added
Statement
Value added is the wealth the bank has
been able to create by providing clients
with a quality and value added service.
2023 2022
TZS’ Million TZS’ Million
Value Added
Income earned by providing banking services* 1,750,815 1,450,073
Interest expense paid to third party funding (73,697) (38,363)
Other depositors (172,380) (128,944)
Fee and commission expense (102,819) (94,260)
Impairment (84,485) (81,180)
Total cost of banking service (433,381) (342,747)
Value added by banking services 1,317,434 1,107,326

Other operating income and expenditures (93,114) (85,053)
Value added from banking services 1,224,320 1,022,273
Value allocated
To Employees:
Salaries and other benefits 227,450 202,428
To Shareholders:
Dividend to other shareholders 123,198 97,639
Government 57,392 45,486
To Government:
Corporate Tax 238,571 186,720
PAYE 61,356 55,083
Skills development levy 9,117 8,785
Excise Duty 47,770 42,838
VAT on services 93,813 84,373
Other taxes 11,887 5,484
462,515 383,283
To Expansion & Growth:

Depreciation, deferred tax and retained earnings 353,765 293,437
1,224,320 1,022,273
* Income earned by providing banking services = Interest Income + Fees and Commission Income + Realised Gain on Investment Securities
+ Foreign Exchange Income + Other Income

Multi Award
Winning Bank
Our performance has received
both domestic and international
acclamations. In 2023, NMB Bank
received 31 awards, and recognition for
excellent performance an increase of
35% year-on-year.
31
Awards

Tanzania Revenue Authority International Business Magazine
- Overall, Winner - Best Retail Bank Tanzania 2023

Largest Taxpayer in Tanzania (All Sectors) - Best SME Bank Tanzania 2023
- Overall, Winner
Most Compliant Taxpayer in Tanzania African Banking Awards: EMEA Finance
- Largest Taxpayer in the category of Financial
Institutions in Tanzania - Best Bank in Tanzania
Association of Tanzania Employers International Bankers Awards
- Runner-Up in the overall winner category - Best Innovation in Retail Banking in Tanzania
Best Employer of the Year 2023
- Runner-up
Best Private Sector Employer 2023
Global Brands Magazine
- Quality, Productivity, and Innovation Award - Best Investment Bank Tanzania 2023
- Best Employer
Gender Equality and Equity Award
Africa Bank 4.0 Awards
Global Business & Finance Magazine - African’s Banking CEO of the year 2023 (Tanzania)
- Best Bank in Tanzania 2023 Award
- Best Bank in Tanzania 2023
- Safest Bank in Tanzania 2023
International Banker 2023
- Best Corporate Social Responsibility Initiative
Tanzania 2023 - Best Commitment to ESG Principles
- Best Retail Bank Tanzania 2023 Tanzania 2023
Euromoney Awards for Excellence 2023 Global SME Finance Awards 2023
- Best Bank for Digital Solutions in Tanzania - SME Financier of the Year Award
- Best Bank for CSR in Tanzania 2023
- Best Bank in Tanzania 2023 World Economic Magazine
- Best Private Bank for High-Net-Worth
- Best SME Bank Tanzania
Individuals in Tanzania
- Best ESG Bank Tanzania 2023
Global Business Magazine
- Best Bancassurance Provider Tanzania 2023
- Best Innovation in Retail Banking in Tanzania - Best Banking CEO Tanzania 2023
- Best Retail Bank Tanzania 2023
Strategy
Review

Strategy Review
Bank Strategy
1
Drive Loyalty with Mass:
To ensure seamless strategy
execution, the bank continues to focus By focusing on growth in market share,
increasing ‘share of wallet’, and providing
on the following strategy pillars and
the best-in-class customer experience
enablers.
2
Boost Branch Productivity & Cost
Efficiency:
By continuous investment in our work force

and disciplined implementation of cost
Innovation Winning
for future Propositions optmisation measures.
Key Pillars
3
Enhance Credit Risk Management:
Operational Driven by prudent risk management

Efficiency
framework coupled with enhanced focus on
loan origination.
4
Enhancing our digital Capabilities:
By focusing on delivering innovative

technological and digital customer - centric
propositions.
5
Deepen Penetration in Wholesale,
Win in SME and Agri
By strengthening strategic
relationships and partnerships while
unlock growth potentials.

Progress Against Our Key Strategic Areas of Focus
We continued to make good progress against our key strategic areas of focus in the third year of
executing our Medium-Term Plan (2021-2025):
Delivering winning proposition

• Customer Base grew by 1.2 million accounts
YoY to 7.1 million accounts
• Customer deposits up 11% YoY to TZS 8.5
trillion
• Digital solutions deepening financial inclusion:
Mshiko Fasta (Digital Micro Loan), NMB Pesa
Wakala (Agency Banking), Lipa Mkononi (QR)
• MSME portfolio up 13% YoY to TZS 777 billion
• Agri loans up 40% YoY to TZS 779 billion
• Corporate loans up 48% YoY to TZS 582 billion
Driving Operational Efficiency
• Cost to Income Ratio (CIR) down to 39%

(2022:42%)
• Productivity up 15% YoY – TZS 386 million

revenue/Full Time Employees
• Strengthened credit risk management

improving portfolio quality – NPL ratio 3.2%
(2022: 3.1%)
• Share of Transactions on Alternative Channels

– 96% (2022: 94%)
Innovating for the Future
• Net Promoter Score of 59 – one among

industry best
• Stable digital platforms – 99% service uptime
• On-going investments in significant technology

platforms – Core Banking System, Data
Management, Loan Management System

Strategy Review
Financial
Highlights Robust balance sheet
Total Assets
Selected financial metrics (TZS Tn)
for FY’23
2023 12.2
2022 10.3
Net Profit
2021 8.7
545.2
TZS Billion Net Loans
(TZS Tn)
Return on Average Equity 2023 7.71
28.6% 2022
4.65
6.01
2021
Capital Adequacy Ratio

Diversified Loan Portfolio
23.26% SME
5%
Agribusiness
Large 5%
Corporates
Liquid Asset Ratio 25%
33.2%
Other SWL
Consumer
Loans 52%
Cost of Risk
8%
1.06% MSE
5%
Cost to Income Ratio

85%
39% CASA deposits as % of total
customer deposits

Solid Balance Sheet
23.25% 23.26%
Core Capital (%) Total Capital Ratio (%)
2023 23.25 2023 23.26
2022 23.08 2022 23.09
2021 23.80 2021 24.60
NPL Ratio Liquidity Ratio LDR
3.2% 33.2% 94.8%

2022: 3.1% 2022: 26.4% 2022: 82%
Strong financial performance
Revenue* Return on Average

(TZS Bn) Shareholders Fund (%)
2022 1,192 2022 25%
2023 1,401 2023 28.6%
2023 1,386 MTP 17.80%

Target Guideline
*Total Revenue before Impairment charges.

Digital Footprint
134 Mn 51 Mn
Volume of transactions executed through NMB Volume of transactions executed on the bank’s
Mkononi and USSD, the banking platform in millions ATM machines in millions
2023 134 2023 51
2022 82 2022 47
2021 57 2021 41
Superior Returns
Share Price Performance Dividend per share (TZS)
49% 64% 72% 2023 361
2022 286
1-year 5-year 10-year
2021 193
Share Price
4,500
3,500
2,500
1,500

Strategy Review
Chairman’s
Statement
“The strength of our governance

principles, unwavering commitment
to serve towards significant value
creation and a sharpened focus on the
ESG agenda continues to catalyze a
sustainable growth path for NMB Bank
today and for many more years
to come.” Dr. Edwin Mhede
Chairman
On behalf of the Board of Directors, I am pleased observed a remarkable transformation in multiple

to state that, 2023 was another year of robust and facets of our Bank. Our investment in technology,
solid performance for NMB Bank, attributed to a corporate governance, human capital, and our
well-executed strategy, effective leadership, and focus on addressing customers’ evolving financial
a committed workforce across the entire network. needs continue to provide solid momentum for
The Board of Directors expresses satisfaction and our sustainable growth. Our shareholders’ returns
confidence with the bank’s strategic trajectory for the have also significantly improved during this period,
years ahead. reaching all-time highs in our bank’s history.
NMB sustained its path of strong growth, delivering

an all-time high financial result in the history of the Shareholders’ Fund
Bank and the Tanzanian banking sector at large. (TZS Bn) & ROE (%)
This historic performance is a testament to the 28.6%
resilience of the Bank’s business model and the
25%
quality of its strategy, which propelled the Bank to 2,093
sustain its path to prosperity amidst ongoing global 21%
1,690
macroeconomic headwinds.
18%
15% 1,355
Our strong performance marked exponential
business growth across all our businesses, as 1,131
evidenced by broad-based balance sheets and 969

income growth.
Since embarking on the execution journey of our 2019 2020 2021 2022 2023
5 year Medium-Term Plan (MTP), we have also

Key Highlights
DPS ROE Shareholders’ Fund
361
TZS
28.6% 2.09
TZS Trillion
26% increase from 40bps up from 24% up from

TZS 286 in 2022 25% in 2022 TZS 1.7 Trillion in 2022
Sustained Superior Results Our mass account opening strategy and best-
in-class customer propositions continue to yield
Three years into implementing our medium- positive outcomes, with our customer base reaching
term strategy, I am pleased to report record and 7.1 million customer accounts, further deepening
remarkable results for the Bank and the highest NMB’s impact and leadership in driving Tanzania’s
profit ever recorded by any financial institution in financial inclusion agenda.
Tanzania. The net profit increased by 26% to TZS
545 billion, with the return on equity increasing The Bank’s performance gives us confidence in our
to 28.6% from 25% in 2022. This has been progress and strategic ambitions. As we progress
accompanied by significant efficiency gains as the along our strategic journey, we intend to invest more
cost-to-income ratio improved by 30 basis points profoundly in our clients’ needs and build on what
to reach 39% in 2023. The balance sheet has also we have done successfully over the last few years to
experienced sustainable growth, with loans and further improve outcomes for our stakeholders.
advances increasing by 28% to cross the TZS 7.7
trillion mark. Sharpened Focus on Sustainability and ESG
Agenda
The quality of our asset portfolio has improved
significantly despite the underlying macroeconomic In remaining steadfast to our aspirations of being
challenges. Our NPL is well below the regulatory a responsible bank, we continued to sharpen our
threshold of 5% (at 3.2% in 2023), and the focus on sustainability. We gained momentum in
annualized cost of risk is improving YoY, owing embedding sustainability within the organization
to prudential portfolio management standards and as a core facet of our strategy. This is reflected
introduced as part of our refreshed end-to-end Credit through the commitment of the Board to dedicate
Risk Management and increased emphasis on the and set aside TZS 2 billion in 2023 to support
quality of our credit origination. Climate and Sustainability initiatives, which saw

the Bank planting and nurturing 1.2 million trees The Board
in the year 2023 countrywide. This commitment
signifies the Bank’s leadership’s towards nature and During the year, the Board’s focus remained
environmental conservation. unchanged. Collectively, we remained steadfast
in our commitments towards strengthening good
Further, as Tanzania ventures in the Sustainability governance practices, championing long-term
journey, we have continued to play a crucial role in growth, and enhancing organizational capabilities
helping to deliver the country’s sustainable finance to serve the business, customers and shareholders
agenda by issuing the first sustainability bond in needs. While delivering all these, we continued to
East Africa, to the tune of TZS 400 billion. The exercise an entrepreneurial approach to strategic
issuance of the Jamii Bond further reinforces the oversight.
position of NMB Bank as the market leader and a
pioneer in sustainability. To this end, our overall philosophy reflects
sustainability and best practices as the core
The year’s achievements underscore NMB’s foundation principles of this Bank.
continuing role as one of the engines for broad-
based economic prosperity, acting as a pillar for About Dividend
unlocking NMB’s continuing role as an engine for
economic well being and enabling new opportunities For the 2023 financial year, the Board has proposed
for clients and stakeholders across Tanzania. a cash dividend of TZS 361 per share, translating
Indeed, we have made solid progress against this to a total dividend pay-out of TZS 181 billion, which
vision over the course of the year under reference. is 1/3 of net profit in line with NMB’s dividend policy.
The proposed dividend per share is a 26% increase
Committed to our purpose of being a responsible from the TZS 286 per share paid for the previous
employer, we also maintained a keen focus on our year. This dividend is subject to approval at the
people-centered culture by driving a highly engaged Bank’s Annual General Meeting in June 2024.
and diverse workforce. We continued to invest in our
people to future-proof the Bank. The productivity and Earnings Per Share
engagement scores continue to provide the Board (TZS)
with a great sense of optimism for the future.
2023 1,090
As we continue making gradual progress, the
Board’s role in strategic oversight of sustainability 2022 863
will continue to be multifaceted and crucial for
ensuring that the Bank integrates sustainability 2021 584
considerations into its strategy, operations, and
risk management. The Board will continue to play 2020 412
a critical role in embedding sustainability into the
2019 284
Bank’s operation, driving long-term value creation,
and safeguarding the interests of stakeholders and
the broader society to whom we serve.

Dividend Per Share
(TZS)
2023 361
2022 286
2021 193
2020 137
2019 96
Appreciations
I sincerely thank the NMB shareholders,

distinguished customers, and our partners for their
unwavering support of the Bank over the years. The
Board is very grateful to the Bank of Tanzania (BOT)
and the Government of the United Republic of
Tanzania for creating an enabling environment that
fosters business growth. To our customers, we value
your continued trust and making NMB your preferred
financial solutions partner.
I also thank my fellow Directors and our Company

Secretary, Ms. Mwantumu Salim for consistently
committing to Board duties and the Bank’s affairs.
Your individual and collective contribution in
making NMB the leading bank in Tanzania is highly
appreciated.
My deep appreciation goes to the CEO, Ruth

Zaipuna, and the Management Team for their
continued focus and disciplined execution of
our strategy. Further, I would like to sincerely
acknowledge the remarkable efforts of our
colleagues, especially the frontline workers across
the entire network. Your impressive dedication to our
customers and the communities that we serve helps
to build our strong brand for shared prosperity.
As we look forward, we remain steadfast to our

commitment of delivering superior financial results
and solid returns to our stakeholders. The Board
will continue to provide necessary oversight, and
challenge the Management to further deepen NMB’s
value creation.

Strategy Review
Taarifa ya
Mwenyekiti
“Uimara wa misingi ya uongozi na utawala

bora, dhamira yetu katika kutengeneza
thamani endelevu kwa wadau wote,
pamoja na msisitizo mkubwa katika
ajenda ya uendelevu, ni baadhi ya nyenzo
muhimu zinazoendelea kuchochea ukuaji
endelevu wa Benki ya NMB kwa sasa na
miaka mingi ijayo.” Dkt. Edwin Mhede
Mwenyekiti wa Bodi
Kwa niaba ya Bodi ya Wakurugenzi, ninayo furaha Tangu kuanza kwa safari ya utekelezaji wa Mpango
kuwajulisha ya kuwa, mwaka 2023 ulikuwa mwaka wetu wa Muda wa Kati (MTP), tumeshuhudia
wa mafanikio ya kihistoria kwa Benki ya NMB. mabadiliko makubwa katika nyanja mbalimbali
Mafanikio haya yalitokana na utekelezaji madhubuti za kimkakati ikiwemo, uwekezaji kwenye teknolojia,
wa mipango ya kimkakati, pamoja na uwekezaji rasilimali watu na misingi ya utawala bora.
mkubwa katika rasimali watu, teknolojia,mifumo ya Mabadiliko haya yameendelea kuwa chachu ya
kidijitali, na misingi ya uongozi na utawala bora. Bodi ukuaji endelevu wa Benki ya NMB. Katika kipindi
ya Wakurugenzi inaridhishwa na mwenendo mzuri hiki cha utekelezaji wa Mpango wetu wa Muda wa
wa kiutendaji na mafanikio ya Benki kwa miaka ya Kati, tumeweza kuboresha huduma kwa wateja wetu
hivi karibuni. Bodi ya Wakurugenzi ina imani na kupitia masuluhisho yanayoakisi mahitaji yao, na pia
mikakati na uelekeo wa Benki kwa miaka ijayo. tumeweza kukuza maradufu faida ya mtaji na gawio
kwa wanahisa wetu na kufikia viwango vya juu zaidi
Mnamo mwaka 2023 Benki ya NMB iliendelea katika historia ya Benki ya NMB.
kuweka historia ya kiutendaji katika sekta ya kibenki
Tanzania. Matokeo haya ya kihistoria ni kiashiria
Mtaji wa Wanahisa (TZS
cha uimara na ubora wa mpango mkakati wa Benki Bn) & Faida ya Mtaji 28.6%
yetu. Kwa miaka takribani minne sasa, Benki yetu ROE (%)
25%
imeendelea kuwa kinara wa kiutendaji na kiufanisi 2,093
nchini Tanzania na imeendelea kukua kwa kasi 21%
licha ya sekta ya kibenki duniani kugubikwa na 1,690
changamoto mbalimbali. 18%
15% 1,355
Ukuaji wetu wa kihistoria unadhihirishwa na ukuaji 1,131

mkubwa katika idara zetu zote za kibiashara, sanjari
969
na ukuaji wa Mizania ya Benki, na Jumla ya mapato.
2019 2020 2021 2022 2023

Vidokezo Muhimu
Gawio kwa
Faida ya Mtaji wa Wanahisa
kila Hisa
Mtaji TZS
28.6% 2.09
TZS
361 Trilioni
Ongezeko la 26% kutoka 40bps ongezeko kutoka 24% ongezeko kutoka shilingi
shilingi 286 mwaka 2022 25% mwaka 2022 trilioni 1.7 mwaka 2022
Matokeo Mazuri na Endelevu kufikia asilimia 3.2 ikiwa chini ya Kiwango cha juu
cha udhibiti cha asilimia 5 kilichowekwa na Benki
Katika kipindi cha Miaka mitatu ya utekelezaji wa kuu ya Tanzania, pia gharama za udhibiti hasara
mkakati wetu wa muda wa kati, ninayo furaha itokanayo na mikopo imeendelea kuimarika zaidi
kuwajulisha kuwa Benki imeendelea kuwa na ukuaji mwaka hadi mwaka hadi mwaka.
imara na bora zaidi katika sekta ya kibenki nchini.
Katika kipindi hiki, Benki imeendelea kuweka historia Dhamira yetu ya kuongeza ujumuishaji wa
ya kiutendaji na kiufanisi. watanzania kwenye sekta rasmi ya kibenki kupitia
huduma bora na nafuu imeendelea kupata matokeo
Kwa mwaka 2023, Benki ilipata Faida Baada ya Kodi chanya. Kwa mwaka 2023 tuliweza kuongeza wigo
ya shillingi bilioni 545, ikiwa ni ongezeko la asilimia wa wateja na kufikia wateja milioni 7.1 ikiwa ni idadi
26 (mwaka hadi mwaka), huku Faida ya Mtaji kubwa zaidi ya wateja katika Benki nchini Tanzania.
ikiongezeka na kufikia asilimia 28.6, ukilinganisha Tuna imani ya kuwa juhudi zetu katika kurahisisha
na asilimia 25 ya Mwaka 2022. Mafanikio haya ya upatikanaji wa huduma nafuu za kibenki zitaendelea
Kiutendaji, yanakwenda sambamba na mafanikio kuchochea ukuaji wa kiuchumi wa taifa letu na mtu
makubwa ya kiufanisi kwani uwiano wa gharama mmoja mmoja pamoja na ustawi wa jamii zinazo
kwa mapato uliimarika kwa alama 30 kufikia asilimia tuzunguka.
39 mwaka 2023. Mizania ya Benki pia imeendelea
kuwa na ukuaji imara, ikichagizwa na ukuaji wa Utendaji wa Benki yetu unatupa imani katika kufikia
mikopo kwa asilimia 28 hadi kufikia shillingi 7.7 malengo yetu. Tunapoendelea na safari yetu ya
trilioni. kimkakati, tunadhamiria kuwekeza zaidi kwenye
matakwa ya wateja wetu na kuendeleza kile
Benki imeendelea kuimarisha usimamizi wa mikopo ambacho tumefanya kwa mafanikio katika miaka
inayotolewa kwa wateja na hivyo kushuhudia iliyopita ili kuboresha zaidi thamani ya mchango wa
matokeo chanya katika enoe hili. Uwiano wa mikopo Benki kwa wadau wote.
chechefu kwa mikopo ghafi umeendelea kuimarika

Dhamira yetu katika maendeleo endelevu Kwa maana hii, falsafa yetu kwa ujumla inaonyesha
uendelevu na utendaji bora, ambazo ni kanuni za
Katika kutimiza dhamira yetu ya kuijenga Benki msingi za Benki hii.
yenye misingi imara inayozingatia ajenda ya
maendeleo endelevu, tumeendelea kutilia mkazo Kuhusu Gawio
swala zima la uendelevu. Katika kudhihirisha hili kwa
sasa ndani ya Benki ya NMB ajenda ya uendelevu Bodi imeridhia gawio la shilingi 361 kwa kila hisa
ni moja ya nguzo muhimu katika mpango mkakati kwa mwaka 2023 litakaloidhinishwa kwenye
wetu. mkutano mkuu ujao wa mwaka wa wanahisa. Gawio
linalopendekezwa kwa kila hisa limeongezeka kwa
Sanjari na dhamira hii, Bodi ya wakurugenzi asilimia 26 kutoka shilingi 286 kwa hisa lililolipwa
iliidhinisha utengwaji wa kiasi cha zaidi ya shilingi mwaka 2022.
bilioni 2 mnamo mwaka 2023 zilizoelekezwa kwenye
kusaidia maswala ya mabadiliko ya tabia nchi na
Pato kwa Kila Hisa
uendelevu. Kiasi hiki kiliweza kusaidia utekelezwaji (TZS)
wa maswala mbalimbali ya kimkakati ikiwemo
gharama za upandaji miti zaidi ya milioni moja na 2023 1,090
laki mbili nchini kote Tanzania.
2022 863
Ni Imani yetu ya kuwa juhudi hizi zote kwa ujumla
zitaendelea kuchagiza mafanikio katika utunzaji wa 2021 584
mazingira na kupunguza matokeo hasi yatokanayo
na ongezeko la gesi ya ukaa duniani. 2020 412
Pia wakati serikali ya Jamhuri ya Muungano wa 2019 284

Tanzania ikiendeleza ajenda ya uendelevu, Benki
ya NMB imeendelea kubeba jukumu muhimu
Gawio kwa Kila Hisa
katika kusaidia kuendeleza ajenda hii kwa kutoa
(TZS)
na kuorodhesha kwenye soko la hisa la Dar es
salaam hatifungani yenye thamani ya shilingi bilioni 2023 361
400 yenye sera na misingi endelevu. Kutolewa kwa
hatifungani hii kunaimarisha nafasi ya Benki ya NMB 2022 286
ya kuwa Benki kiongozi nchini.
2021 193
Bodi
2020 137
Mwaka huu, mwelekeo wa Bodi haujabadilika. Kwa
pamoja, tulibaki kuwa imara katika kutimiza ahadi 2019 96
yetu ya kuimarisha utawala bora, kusimamia ukuaji
endelevu na kuimarisha uwezo wa Benki ili kukidhi
mahitaji ya biashara, wateja na wanahisa wetu.
Wakati tukiendelea kufanya yote haya tumeendelea
kutumia mbinu za kijasiriamali katika usimamizi wa
kimkakati.

Shukrani
Kwa unyenyekevu mkubwa, natoa shukrani zangu

za dhati kwa wanahisa, wateja na washirika wa
Benki ya NMB kwa msaada wao usioyumba kwa
miaka yote iliyopita. Bodi inawashukuru sana
wasimamizi, Benki Kuu ya Tanzania kwa mwongozo
wao wenye thamani na Serikali kwa mazingira
wezeshi ya kibiashara. Kwa wateja wetu, kwa
namna ya kipekee tunawashukuru kwa kuendelea
kuiamini na kuichagua Benki ya NMB kuwa mdau
wenu katika huduma za kifedha.
Pia, nawashukuru Wakurugenzi wenzangu wa

Bodi ya NMB, pamoja na Katibu wa Kampuni,
Bi. Mwantumu Salim, kwa utendaji wao thabiti na
utekelezaji wa majukumu kwenye Bodi kwa manufaa
ya Benki na wadau wote.
Shukrani zangu za kipekee zinakwenda kwa Afisa

Mtendaji Mkuu, Bi. Ruth Zaipuna na Menejimenti
kwa jukumu muhimu sana wanalotimiza katika
utekelezaji wa mkakati wetu na kuhakikisha kuwa
biashara inakwenda vizuri. Matokeo mazuri ya
Benki yanajionyesha yenyewe. Kwa wafanyakazi
wetu kwenye Benki, nawashukuru kwa ufanyaji kazi
kwa ari na mchango wenu makini katika kutusaidia
kuwa chaguo la kwanza la huduma za kifedha.
Kwa msaada wenu, tumekua na kuwa taasisi
inayoongoza na endelevu, iliyojengwa kwa viwango
bora vya maadili na utawala bora. Tunakusudia
kudumisha viwango hivi tunapoendelea zaidi
kuelekea kwenye azimio letu la kimkakati kwa
ujumla.
Tunapouanza mwaka 2024 na kuendelea, Bodi

ya Wakurugenzi inaendelea kutilia mkazo adhma
ya Benki yakuendeleza muenendo wa mafanikio
bora, na ukuaji wa tija kwa wadau wote. Tunaahidi
kuendelea kuisimamia vyema Menejimenti ili
kuhakikisha ukuaji endelevu wa Benki ya NMB kwa
miaka mingi ijayo.

Strategy Review
Operating
Environment
Macro-Economic Overview
Economic Growth (in %) Main Driver
Global recoveries remained slow, as the global economy growth

Global Economy
rate decreased to 3.1% from the 3.5% recorded in 2022 due to
3.1 3.5
2023 2022 geopolitical tensions and stringent financial circumstances, resulting
in sluggish trade expansion, and diminished consumer spending.
Despite the headwinds, the progress in the post-pandemic
environment offered some support. Global inflation is forecasted to
decline from 8.7 % in 2022 to 6.8 % in 2023 and 5.8 % in 2024 due
to tighter monetary policy aided by lower international commodity
prices.
Emerging Markets Emerging economies are displaying indications of returning to

normalcy following supply-chain disruptions and prevailing global
4 4.1
2023 2022 macro challenges. Regional disparities in recovery are becoming
more pronounced, leaving room for policy mismatch. Resource-
dependent nations and leading commodity exporters are anticipated
to perform strongly, benefiting from fierce competition and elevated
commodity prices. This includes emerging Asian economies
like India, Indonesia, and Thailand. Latin American and Eastern
European nations are also positioned for a rebound.
Africa Economy The economic growth for Africa in 2023 indicates a slight expansion,
as per the IMF 2024 report, estimating an average GDP rise of 4%
4 3.3
2023 2022 from 3.3%. Nevertheless, this development is foreseen to come
with challenges linked to debt sustainability, fiscal constraints,
inflationary trends in certain nations and climate issues.
East Africa East Africa is projected to experience the highest regional economic
growth on the continent for 2023 and 2024. The region’s growth
5.8 5.1
2023 2022 is driven by several factors, including the services sector, which
contributed almost half of the economic growth in 2023.
Tanzania Following a slowdown to 4.7% in 2022, GDP growth rebounded
5.3 4.7
in 2023 and is estimated to have grown by 5.3%, according to
2023 2022
the Bank of Tanzania. This resurgence was predominantly fueled
by robust expansion in the service sectors, notably financial and
insurance services.

Operating
Environment
Tanzania’s economic performance in 2023 was rate of 3.2%. This places Tanzania as the third-
robust, with a GDP growth rate of 5.3% (BOT, 2023), highest country in terms of population growth rate
primarily propelled by expanding service sectors like globally, indicating a significant potential consumer
financial and insurance services and information and market for investors.
communication. Despite global economic challenges
impacting overall economic activities and exerting Strengths that make Tanzania an attractive
inflationary pressures, Tanzania has demonstrated investment destination
remarkable resilience, a testament to its stable
economic environment. Tanzania is an attractive place for business and
investment due to several factors including:
Inflation displayed a downward trend, primarily
due to the cooling of global inflation and a less
• Government Support and Economic
accommodative monetary policy stance by the
Reforms: The Tanzanian government has
central bank. The annual headline inflation rate
worked on economic reforms to create a more
decreased to 3% in December 2023 from 4.7%
investor-friendly environment. The government’s
(2022), falling below the targeted level of 5%.
capacity to support investment and the financial
service sector remains high, indicated by a
Tanzania’s achievements are a testament to its
positive outlook on the sovereign rating and
enduring macroeconomic stability and government
structural reforms. The Government’s Tanzania
structural reform agenda, fostering growth and
Development Vision 2025 and the Five-Year
leveraging its vast resources and strategic
Development Plan (FYDP III) set ambitious
geographical location. Over the past ten years,
goals for reducing poverty and industrializing
Tanzania has consistently maintained an impressive
the country to achieve middle-income status by
average GDP growth rate of 5.5%, showcasing its
2025.
robust and resilient economic performance.
• Political stability: Tanzania is politically stable,
This growth, underpinned by political stability, a which creates a conducive environment for
growing workforce, and abundant natural resources, businesses to operate and prosper.
positions Tanzania as an attractive investment
destination. Projections from the IMF and other • Population Demographics: According to
institutions indicate that Tanzania is poised for even the 2022 census, Tanzania has a population
stronger economic growth, further solidifying its of about 61+ million people. It has the largest
position as a favorable business and investment population in East Africa and is Africa’s fourth-
destination. most populous country. The country’s population
has been increasing (3% per annum), with over
Tanzania’s economic potential is further bolstered 60% aged under 25 years.
by its rapidly growing population, one of the world’s
• Market access: Tanzania’s strategic geographic
fastest-growing. The 2022 Population and Housing
location provides access to markets in
Census results reveal that Tanzania’s population
neighboring countries and beyond. The country
reached 61.7 million in August 2022. The census
is a gateway to six (6) Landlocked Countries:
data indicates a 37% increase in population between
Uganda, Rwanda, Burundi, DR Congo, Zambia
2012 and 2022, reflecting an average annual growth
& Malawi.
• Natural resources: Tanzania is rich in natural Climate Changes Issues
resources such as gas, minerals, and uranium,
which are yet to be fully exploited. Climate change poses significant challenges
to various sectors, namely agriculture,
• Agricultural land: Tanzania has vast arable
manufacturing, and energy. These sectors
land for agricultural investment, accounting for
are particularly vulnerable to the impacts
44% of the country’s 945,087 km².
of climate change, such as droughts that
• Availability of workforce: The labor market directly affect agricultural productivity and
in Tanzania is readily available with skilled reliable power supply. In the 2021 Global
and semi-skilled workers who are ready and Climate Risk Index (GCRI), Tanzania ranks
available to work in various industries. 67th, highlighting its exposure to climate-
related risks. The 2015 National Development
• Room for further expansion: Tanzania is Council (NDC) review estimated that climate
part of the East African Community, offering shocks impose economic costs equivalent
opportunities for businesses to grow and to approximately 1% of the country’s GDP.
expand beyond its borders into countries like The Tanzanian government has implemented
the Democratic Republic of Congo, Burundi, policies to enhance climate resilience to
Rwanda, and Uganda address these challenges. Notable initiatives
• Moodys Rated B2 Positive Outlook: Moody’s include the National Climate Change Strategy
Investors Service revised the outlook on 2021–2026, the Zanzibar Climate Change
Tanzania to positive from stable and affirmed the Strategy, and the Environmental Management
“B2” (LT- foreign currency) credit rating. Act Cap. 191. Tanzania’s NDC targets
reducing greenhouse gas (GHG) emissions
by 10–20% by 2030, focusing on promoting
Key Outlook clean technologies. This commitment aligns
with the objectives outlined by the African
Tanzania’s medium-long-term outlook remains Development Bank.
positive, with the country set to continue to
benefit from a stable political environment and
macroeconomic policies that have allowed it to
sustain 6% to 7% growth rates in previous years.
The World Economic Outlook Update by the
International Monetary Fund (IMF) for January 2024
indicates a positive economic outlook for Tanzania in
2024. The IMF projects that the country’s real GDP
will experience a growth rate of 6.1% in the same
year. Additionally, consumer prices are expected to
increase to 4%. This growth is primarily driven by
an increase in the cost of goods and services and
the expansion of the services sector on the supply
side. The strong growth of the private sector, public
investment, improved business climate, favorable
global macroeconomic conditions, and supply chain
constraints are expected to reinforce output growth
further.

The Banking Sector
The banking sector demonstrated resilience against economic growth, increased credit, and an improved
shocks as banks maintained adequate capitalization, operating environment contributed to the sector’s
liquidity, and profitability. Banks experienced growth solid performance.
in assets and deposits, indicating a positive business
The sector is anticipated to sustain it growth
and digital penetration trend. As a result, Tanzania’s
trajectory, supported by prudent policies and
banking sector registered an after-tax profit of TZS
regulatory measures implemented by the Bank
1.6 trillion in 2023, a 70% growth compared to
of Tanzania. The government’s unwavering
the previous year. The non-performing loan ratio
commitment to fostering a favorable business and
declined to 4.3%, and the Cost to income ratio
investment environment will also contribute to its
stood at 50.7% (2022: 54%). Loan and advance
continued growth.
growth accelerated to reach TZS 36.1 trillion. Strong
NMB Market Share Compared Against the

Overall Banking Sector (TZS Bn)
Overall Banking (Assets) #2
12,220 54,221
Total Deposits #1
8,474 38,647
Net Loans and Advances #2
7,707 32,037
Total Income #1
1,402 5,334
Net Profit Before Tax #1
775 2,249
NMB Banking
Sector

Strategy Review
CEO’s
Statement
‘‘The year’s achievements underscore NMB’s

continuing role as one of the engines for
economic prosperity and unlocking new
opportunities for clients and stakeholders. We
are indeed humbled and honored by our clients
and shareholders’ trust and the dedication of our
employees, who have propelled us to achieve
these historical milestones.’’ Ruth Zaipuna
Chief Executive Officer
Record performance our medium-term plan smoothly. We strengthened

our credit risk management, maintaining our loan
On behalf of the Management and colleagues, I portfolio quality stable, with an NPL ratio of 3.2%,
am pleased to state that, 2023 was a year of solid well below the regulatory threshold of 5%.
performance, with profit before tax of TZS 775 billion
(26% up compared to 2022) and a 29% ROE. Our Strategic focus and milestones
total revenue increased by 18% compared to the
previous year, reaching TZS 1.4 trillion in 2023. The execution of our 5 years medium-term plan is
We also saw substantial efficiency gains, with the well on track, evidenced by solid progress along
Cost-to-income ratio decreasing 30bps to 39%. The strategic initiatives. To drive loyalty and accelerate
growth pace for main income drivers is accelerating, the financial inclusion agenda, we expanded our
and we have observed increased revenue network coverage by opening four new branches
momentum across all business segments. and onboarding over 11,000 new agents, reaching
28,295 Agents in 2023. In turn, we were able to
The Bank’s balance sheet strengthened further, onboard over 1.2 million new customer accounts.
as our total assets reached an all-time high of TZS
12.2 trillion, an 18% increase compared to TZS 10.2 Our effort to create a future-proof, technologically
trillion in 2022. We attained this growth through driven bank, NMB continues to yield positive
a broad-based balance sheet growth driven by a results. Consequently, 96% of all transactions are
combination of high loan growth, prudent investment currently being conducted through alternative
in government securities coupled with commendable banking channels, and remarkably, 84% of the newly
customer deposit growth. We remain well-capitalized onboarded retail customers’ accounts were opened
and have a solid capital position. Our Total Capital digitally through our DSS Onboarding App.
Adequacy ratio of 23.26% provides a sufficient buffer
to undertake our strategic initiatives and implement

Record Breaking
Performance
Net Profit Total Revenue Total Assets
545
TZS Billion
1.4
TZS Trillion
12.2
TZS Trillion
up 26% from TZS 432 up 18% YoY up from 19% YoY

billion in 2022
In 2023, significant strides were achieved in Sustainability at forefront

advancing our key strategic projects, characterized
by ambitious goals spanning all business segments At NMB Bank, we believe that the Sustainability
and a steadfast commitment to meticulous agenda is not just a corporate responsibility but
execution. Our unwavering dedication to disciplined a strategic imperative integral to driving business
implementation of our Medium-Term Plan 2025 resilience, innovation, competitiveness, and long-
remains unwavering as we strive to meet and term value creation. By embracing sustainability as
exceed our financial and non-financial targets for a core business principle, we continue supporting
2024 and beyond. sustainable and responsible growth, including
delivering the UN Sustainable Development Goals
(SDGs) and purposefully championing the transition
Creating a better place to work to a net zero economy.
Our commitment to developing and retaining a In 2023, we invested over TZS 6.2 billion in our
highly skilled workforce is crucial for accomplishing community and sustainability-related initiatives. The
our Strategy. We have intensified our efforts in bank dedicated TZS 4.2 billion, equivalent to 1% of
talent acquisition, nurturing growth, and fostering the bank’s 2022 Profit After Tax, to support a range
development by continuously enhancing our staff’s of Corporate Social Investment (CSI) initiatives in
skills through ongoing learning opportunities. health, education, entrepreneurship, and financial
During the year, we increased the staff budget for literacy areas. Additionally, a separate allocation of
learning and career development by 8% to support TZS 2 billion was explicitly earmarked for advancing
our colleagues’ educational and professional climate change and sustainability projects,
development. The calibre of our employees can demonstrating the bank’s commitment to social
be demonstrated through internal promotions, with responsibility and environmental stewardship.
internal appointments accounting for 59% of total
hires. Thus, productivity per full-time employee
(FTE) increased to TZS 386 million in 2023 (TZS
342 million: 2022). NMB Integrated Annual Report 2023 | 44
We also continued to lead the sustainability agenda Outlook
by issuing the first sustainability bond in East Africa,
amounting to TZS 400 billion, to finance eligible Delivering our Strategic Plans in 2024 and Beyond
green and social projects. In recognition, we have
been named “The Best Bank for CSR (Euromoney)” Our commitment remains unwavering in 2024
and “The Best Commitment to ESG Principles” in and beyond. We seek to create sustainable value
2023 (the International Banker). beyond financial returns through our banking
products, solutions, and operations. We will continue
The quality of our governance principles also to take a long-term view in our decision-making,
continues to improve markedly and remains a focusing on delivering superior results and solid
distinguishing factor for us. In 2023, the Global returns. We will champion a practical transition to
Business& Finance Magazine named NMB “The a low-carbon economy while balancing Tanzania’s
Safest Bank in Tanzania,” while the Tanzania unique needs for continuous economic growth,
Revenue Authority named us “the Largest and Most poverty reduction, and financial inclusion. With the
Compliant Taxpayer in Tanzania.” opportunities that lie ahead, we believe we are on
course to continue being a force for positive impact
These achievements undoubtedly highlight our in Tanzania and beyond.
continued market leadership status. Euromoney
has again (10x times in 11 years) named us “the Appreciations
Best Bank in Tanzania,” further underscoring NMB’s
market leadership position. I would like to express my sincere gratitude to our
Board, shareholders, regulators, the Government,
our valued customers and staff. Thank you all for
your continued support.
As we look ahead to the future, I am filled with

excitement and optimism. We will remain focused
African’s Banking CEO of the on our strategy, innovation, community involvement,
year 2023 (Tanzania) and providing our customers with the highest level of
awarded by Africa Bank 4.0 Awards service.
Best Banking CEO

Tanzania 2023
awarded by World Economic Magazine

Strategy Review
Taarifa ya Afisa
Mtendaji Mkuu
‘‘Mafanikio ya mwaka huu yanadhihirisha

mchango na jukumu endelevu la NMB katika
ustawi wa kiuchumi na kufungua fursa mpya
kwa wateja na wadau wote. Kwa hakika
tunajivunia imani ya wateja na wanahisa wetu
pamoja na kujitoa kwa wafanyakazi wetu, ambao
wametusaidia kufikia hatua hizi muhimu za
kihistoria.’’ Ruth Zaipuna
Afisa Mtendaji Mkuu
Mafanikio ya kiutendaji Benki imeendelea kuwa na mtaji wa kutosha huku

ikiwa na utoshelevu wa mtaji wa asilimia 23.26 ikiwa
Kwa niaba ya Menejimenti na Wafanyakazi ni juu ya asilimia 14.5 inayotakiwa na Benki Kuu.
wenzangu, napenda kuwafahamisha ya kwamba, Utoshelevu wa mtaji wetu unatupa nafasi ya kutosha
mwaka 2023 ulikua mwaka wa mafanikio makubwa kuendelea kuwekeza zaidi kwenye kukuza biashara
kwa Benki yetu ya NMB. Faida ya Benki kabla ya ya Benki yetu. Menejimenti inaendelea kusimamia
Kodi imeongezeka kwa asilimia 26 hadi kufikia na kudhibiti viashiria vya hatari, kwa mwaka 2023
Shilingi bilioni 775 ikilinganishwa na mwaka 2022, tumeweza kudhibiti kiwango cha mikopo chechefu
huku uwiano wa faida na mtaji ukifikia asilimia huku uwiano wa mikopo chechefu na jumla ya
28.6. Kuongezeka kwa faida katika mwaka 2023, ni mikopo ghafi ukishuka na kufikia asilimia 3.2 chini
matokeo ya kuongezeka kwa jumla ya mapato halisi ya kiwango cha udhibiti cha asilimia 5 kilichowekwa
kwa asilimia 18 na kufikia kiasi cha shilingi trilioni 1.4 na Benki Kuu.
mwaka 2023. Tumeweza kuongeza ufanisi kwa kiasi
kikubwa, uwiano wa gharama za uendeshaji kwa
jumla ya mapato umeimarika na kufikia asilimia 39. Mafanikio ya Mipango ya Kimkakati
Menejimenti itaendelea kuwekeza katika teknolojia ili
kuleta tija katika utoaji wa huduma kwa wateja. Utekelezaji wa Mpango Mkakati wetu wa muda
wa kati umeendelea kuwa thabiti, nidhamu yetu
Mizania ya Benki imeimarika zaidi huku ikiongezeka katika utekelezaji wa malengo yetu imeendelea
kwa asilimia 18 na kufikia Shilingi trilioni 12.2 kutupa matokeo chanya, mafanikio yetu yamekua
ukilinganisha na shilingi trilioni 10.3 mwaka 2022. ya kujivunia kwa kila mmoja wetu na tumeendelea
Kuongezeka kwa mali kulitokana na kuongezeka kuwa mstari wa mbele kabisa katika kuwajumuisha
kwa amana za wateja, kuongezeka kwa mikopo watanzania wote katika sekta rasmi ya kifedha.
iliyotolewa kwa wateja wetu pamoja na uwekezaji Mwaka 2023 tumefanikiwa kuongeza takribani
katika dhamana za Serikali.

Mafanikio ya
Utendaji Imara
Faida Baada ya kodi Jumla ya Mapato Jumla ya Mali

TZS TZS TZS
545
Bilioni
1.4
Trilioni
12.2
Trilioni
Imeongezeka kwa 26% kutoka Imeongezeka kwa 18% Imeongezeka kwa 19%
Shilingi 432 bilioni mwaka 2022 kutoka mwaka 2022 kutoka mwaka 2022
akaunti mpya milioni 1.2 katika huduma za kibenki wetu. Tumeendelea kuimarisha juhudi katika
na ili kuwafikishia Watanzania huduma za kifedha kutafuta na kuendeleza vipaji vya watu wetu. Mwaka
karibu, tulifanikiwa kufungua matawi mapya manne 2023 tuliongeza bajeti ya mafunzo kwa asilimia 8
na kuongeza idadi ya mawakala wetu wanaotoa ili kuwawezesha wafanyakazi wetu kujiendeleza
huduma za kibenki hadi kufikia 28,295. kitaaluma na kielimu. Tija ya watu wetu iliongezeka
hadi kufikia kiasi cha shilingi milioni 386 kwa kila
Sambamba na utekelezaji wa mkakati wetu wa mfanyakazi ukilinganisha na shilingi milioni 342
miaka mitano tumeendelea kuwekeza kwenye mwaka 2022. Hii ni ishara ya kwamba uwekezaji
teknolojia ili kurahisisha upatikanaji wa huduma tunaoufanya kwa watu wetu umeendelea kuzaa
zetu. Hadi kufikia Disemba 2023, asilimia 96 ya matunda.
miamala yote ya wateja wetu ilikua ikifanyika nje
ya matawi yetu kupitia huduma zetu za kidijitali.
Sambamba na hilo tumefanya maboresho makubwa Uendelevu na Uwekezaji kwa Jamii
kwenye mifumo yetu ya usajili wa wateja na hivyo
ninayo furaha kwamba asilimia 84 ya wateja Ndani ya Benki ya NMB tunaamini ya kwamba
tuliowafungulia akaunti, zilifunguliwa kwa njia ya ajenda ya uendelevu si tu uwajibikaji katika jamii bali
kidijitali kupitia maafisa mauzo wetu. pia ni mkakati katika kuimarisha biashara, uvumbuzi,
ushindani na uendelezaji thamani wa muda mrefu.
Kama Benki kiongozi tunaendelea kuwa mstari
Mazingira bora ya kazi wa mbele kwenye agenda ya uendelevu na kwa
kufanya hivyo tumeweza kusaidia katika kutimiza
Ahadi yetu ya kuendeleza na kuwa na wafanyakazi ajenda ya Umoja wa Mataifa kuhusu maendeleo
wenye upeo na weledi wa hali ya juu imeendelea endelevu na kuchangia katika kupunguza uzalishaji
kuwa msingi wa utekelezaji wa mpango mkakati wa hewa ya ukaa.

Mwaka 2023, tuliendelea na sera yetu ya kutenga Mustakabali wetu
asilimia moja ya faida yetu kuisaidia jamii inayo
tuzunguka, tulitenga jumla ya shilingi bilioni 6.2 Tunapiga hatua katika kuiboresha Benki kuwa na
kutumika katika uwekezaji kwenye uendelevu na ufanisi mzuri wa kibiashara unaochangia kuboresha
huduma za jamii, kati ya hizo jumla ya shilingi bilioni utendaji. Dhamira yetu ni kuendelea kuifanya NMB
4.2 zilitumika katika uwekezaji kwa jamii ikijumuisha kuendelea kuwa Benki kinara na kuongeza thamani
hospitali, mashule na Elimu ya kifedha na ujasirimali, kwa watu wetu na washirika wetu huku tukiendelea
huku shilingi bilioni 2 zikitumika kugharamia shughuli kuongeza faida kwa wawekezaji wetu. Tutaendelea
za utunzaji mazingira na Uendelevu ikijumuisha kuwa mstari wa mbele katika kufanikisha upunguzaji
upandaji wa miti milioni 1.2 nchi nzima. wa uzalishaji wa hewa ya ukaa na kuendelea kutilia
mkazo katika uwekezaji kwenye uendelevu. Fursa
Mwaka 2023 ulikua wa kipekee pia kwani tuliweza nyingi ziko mbele yetu tunaahidi kuendelea kuwa
kutoa hati fungani ya kwanza ya uendelevu katika kinara katika kugusa jamii ya watanzania.
ukanda wa Afrika Mashariki. Kupitia hati fungani
hii, tuliweza kukusanya jumla ya kiasi cha shilingi Shukrani
bilioni 400 zitakazo tumika katika kukopesha miradi
ya uendelevu. Katika kutambua juhudi zetu kwenye Napenda kutoa shukrani zangu za dhati kwa bodi
uendelevu jarida la Euromoney liliitaja Benki ya NMB yetu, wanahisa, mamlaka za usimamizi, Serikali,
kama Benki bora Tanzania katika uwajibikaji kwa wateja wetu na wafanyafakzi wenzangu, kwa kuwa
jamii (CSR) huku jarida la ‘The International Banker’ chachu ya mafanikio ya Benki yetu ya NMB.
likitutambua kama Benki Bora katika ufuataji wa Tunapotazama mbele katika siku zijazo, ninayo
misingi ya Mazingira, Jamii na Utawala bora. imani ya kuwa, Benki yetu itadumisha muenendo
bora wa kiutendaji na kiufanisi, huku tukiendelea
Ubora wa kanuni na sera zetu kuhusu utawala kuimarisha mchango wa Benki katika maendeleo
bora zimeendelea kuimarika kwa kiasi kikubwa endelevu ya kiuchumi na kijamii kwa manufaa
na hilo ndio limekua jambo linalo tutofautisha na mapana ya Taifa letu.
wengine. Mwaka 2023 jarida la ‘Global Business &
Finance’ liliitaja Benki ya NMB kama Benki salama
zaidi Tanzania huku Mamlaka ya Mapato Tanzania
ikitupatia tuzo ya Mlipa kodi mkubwa zaidi na
anayejali kanuni na sheria za kodi Tanzania.
Mafanikio haya bila shaka yanaonesha nafasi na

ukubwa wetu katika soko, aidha jarida la Euromoney
tena kwa mara ya 10 ndani ya miaka 11 limetutaja
NMB kama Benki bora zaidi Tanzania hii ni
uthibitisho wa uimara na ubora wetu katika soko.

Strategy Review
CFO’s
Statement
“In 2023, the Bank’s total income reached a

staggering TZS 1.4 trillion, a remarkable 18%
increase from TZS 1.2 trillion in 2022. This
earned growth was primarily driven by the robust
expansion of our net interest income (NII), which
surged by 19% to TZS 937.2 billion from
TZS 786.4 billion in 2022.”
Juma Kimori
Chief Financial Officer
Since we set our 2023 targets in November 2022, Our balance sheet remains a pillar of strength,
the global economy has experienced significant with total assets reaching TZS 12.2 trillion by the
macroeconomic headwinds, with foreign exchange end of 2023, marking a robust 19% YoY increase.
liquidity and rising interest rates impacting the This growth is primarily attributed to the Bank’s
banking industry. Despite the challenges, the expanding deposit base and loan book, which have
Bank has made significant progress against its grown by 11% and 28%, respectively.
strategic objectives, achieving growth in its core
businesses, and maintaining balance sheet strength Strong income momentum
while advancing digital transformation and its
Sustainability agenda. In 2023, the Bank’s total income reached a
staggering TZS 1.4 trillion, a remarkable 18%
Thanks to the quality of our business model and increase from TZS 1.2 trillion in 2022. This
the disciplined execution of our strategy, we have impressive growth was primarily driven by the robust
achieved historic results that we can all be proud expansion of our net interest income (NII), which
of. Our record profit was driven by exponential surged by 19% to TZS 937.2 billion from TZS 786.4
loan book growth, double-digit deposit growth, billion in 2022. Our non-funded income (NFI) also
solid portfolio quality, and significant efficiency experienced a healthy growth of 16% YoY, reaching
gains. Profit Before Tax grew by 26% to TZS 775 TZS 468.4 billion compared to TZS 402.1 billion in
billion, and Profit after tax increased by 26% to 2022.
TZS 545 billion from TZS 432 billion in 2022. These
profitability levels mark a historic new high for the Net Interest income
bank and the Tanzania financial services sector,
reinforcing our commitment to delivering value to our The NII had robust performance in 2023, primarily
stakeholders. due to 42% growth in earning assets to TZS 9.3
trillion from TZS 6.6 trillion in 2022; this is the
highest net interest earned by a bank since its
inception in 1997.
The Bank continues to optimize its balance sheet to activity on foreign currency transactions and the
increase earnings from its assets. Interest earned rise in cross-border activities.
from Loans and Advances to customers amounted
• Agency banking income rose by TZS 6.5 billion,
to TZS 958.8 billion, up 24% from 2022. Interest
primarily driven by improving the service delivery
earned from investments in Government securities
model and revamping the agency banking
grew by 24% YoY to TZS 208.8 billion, following
channel. Thus, onboarding more than 11,000
a TZS 17% YoY increase in investments in debt
new agents/wakala, closing the year with 28,295
securities.
nationwide and bringing our banking services
closer to our customers.
Interest expenses significantly increased in 2023,
to TZS 246 billion from TZS 167 billion (47% YoY), • The revitalization of NMB Mkononi resulted in a
due to the rising interest rate environment in Global 28% income growth, reaching TZS 86.9 billion.
markets. This pushed the cost of deposits
1,286 and
borrowing higher in the industry
1,190 than the previous • Card business income increased by 11% to TZS
year. The bank895continues to deploy several deposit 33 billion.
mobilization initiatives geared towards further
fortifying our funding base and maintaining liquidity 19% 14%
position within acceptable levels for sustainable
growth momentum.
Interest Income 6% 20%

(TZS Bn)
2023 1,180
23%
11%
2022 954 7%
2021 815 FX Income Loan Related Fees
Agency Banking Loan Recoveries
Non-funded income Bancassurance Others
Card Business
In 2023, we made tangible progress against our
revenue diversification strategy and improved
our digital delivery platforms, allowing our clients Significant efficiency gains
to access services conveniently, quickly, and
seamlessly. Top-line growth saw total operating expenses
increase by 10% YoY, based on broad-based
As a result, non-interest income increased by 16% investment in the business’s growth. Meanwhile, we
to TZS 468.4 billion, significantly contributing to improved our cost-to-income ratio by 30 basis points
the bank’s revenue and representing 33% of total to 39%, maintaining disciplined cost management
income in 2023. and enhancing productivity.
The following highlights the significant changes In implementing our Medium-Term Plan (2021-
across NFI segments. 2025), we have increased our efficiency in the past
five years by adopting a cost-optimization approach
• Forex trading income increased by 37% to TZS
encompassing digitalization and investment in our
65.8 billion, primarily driven by increased client
people to increase productivity.
Robust liquidity, funding, Continuously refining our Cost-to-
Income ratio has been a strategic focus,
and Resilient 2023 with a notable emphasis on optimizing
Performance operational efficiencies.
Consequently, our cost-to-income ratio has

Net Profit significantly improved compared to the period before
545.2
the MTP, when it peaked at 59% in 2018.
To enhance productivity, over 50% of

TZS billion
up 26% from TZS 432 billion in 2022
our operational costs are dedicated to
investing in our workforce.
Return on Equity
28.6% 7%
up from 26% in 2022 17%
Total Capital Adequacy Ratio

54%
23.26% 15%
up from 23.09% in 2022

7%
Dividend Per Share Staff Exp General Exp
Property Exp Depreciation
361 TZS
Office Exp
up from TZS 286 in 2022

Well-managed and Optimised balance
Net Asset Value Per Share sheet with Robust Asset Quality
4,185 TZS
Total assets increased significantly to TZS 12.2
trillion, driven by increased customer Loans and
up 24% from TZS 3,375 in 2022 Advances and prudent investment in Government
securities. Our portfolio remains healthy and of high
quality. Customer Deposit growth in the Retail and
3-Year Total
Wholesale segments remained strong throughout
Share Performance
the year, albeit slower than our loan velocity.
+92%
Despite the deceleration of the overall credit growth We maintained a strong capital position with a
to the private sector in the economy from 23% in Tier 1 capital ratio of 23.25% (2022: 23.08%) and
2022 to 17% in 2023, our loan portfolio grew by a total capital ratio of 23.26% (2022: 23.09%).
28% YoY in 2023, reaching TZS 7.7 trillion driven by Therefore, the bank retains a significant capital
management buffer over the regulatory minimum
loans growth.
requirement of 12.5% for core capital and 14.5% for
total capital. Overall, our balance sheet continued to
Total deposits amounted to TZS 8.5 trillion in 2023, be supported by high levels of capital and liquidity,
representing an 11% YoY growth from TZS 7.6 enabling us to grow our business with customers
trillion in 2022. This growth reflects the positive while meeting additional regulatory requirements.
results of improved customer experience and
disciplined execution of our deposit mobilization Asset Quality
strategies during the year. Robust Customer
Asset quality remained strong as net charge-offs
deposits growth was mainly supported by wholesale
remained low. Impairment charges closed the year
banking customer deposits growth of 21%,
4% higher than that recorded in 2022 on account
amounting to 3.7 trillion. CASA continues to account of the accelerated growth of our loan book. The
for a large share of total Customer deposits. non-performing loan-to-gross loans ratio remains
stable at 3.2% compared to 3.1% in 2022, and it is
below the industry level of 4.3% and the regulatory
minimum of 5%. The stability in the NPL ratio was
1,286 due to the disciplined execution of our prudent credit
1,190 risk management strategies. NPL coverage remains
895
7,157
strong at 96%, and the cost of risk remains low at
1.06%.
6,410
5,679 Taxation
We paid TZS 555.4 billion in taxes during the year,

a 19% increase compared to TZS 467.3 billion last
2021 2022 2023 year. Furthermore, we were named the country’s
CASA
largest and most compliant taxpayer. It is the second
year we have been named the largest and most
Time Deposits
compliant taxpayer in Tanzania by tax authorities,
reflecting our commitment to regulatory compliance.
Capital position Sustainability and governance
We remain highly liquid and well-capitalized with Our commitment to responsible banking practices
a stable funding mix. The Bank’s liquidity surplus and high governance standards continues to set us
continues to comfortably exceed both regulatory apart. In 2023, our bank was honored as ‘The Safest
requirements and our prudent internal risk appetite Bank in Tanzania’ and received four sustainability
metrics, ensuring a substantial buffer in the event of and three taxpayer awards. Additionally, we have
any outflows. effectively raised and introduced the NMB Jamii
Bond, marking a milestone in our sustainability
We also further improved our funding mix. Low-cost initiatives.
current and savings account (CASA) balances
comprise 85% of our total Customer Deposit base,
up from 84% in 2022. Current and savings account
balances grew strongly by over 12.5% YoY to TZS
7.2 trillion.

Bank’s Financial
Highlights
Bank’s Five-Year Summary 2023 2022 2021 2020 2019

Selected Income Statement Items (TZS million)
Non-Funded Income 468,380 402,132 305,838 268,295 204,409
Total Income 1,405,618 1,191,768 985,678 839,460 726,784
Total Operating income 1,321,183 1,110,588 872,549 720,148 626,374
Total Operating expenses 546,382 495,423 454,524 418,868 410,513
Total Impairment Charges 84,435 81,180 113,129 119,312 100,410
Total profit After Tax 545,207 431,672 292,149 210,300 144,739
Selected Balance Sheet Items (TZS million)

Net loans and advances to customers 7,706,925 6,014,603 4,653,933 4,108,891 3,590,006
Customer deposits 8,465,608 7,594,832 6,662,889 5,325,450 4,916,551
Total assets 12,179,562 10,234,552 8,681,421 7,058,631 6,417,427
Total risk-weighted Assets 8,311,135 6,708,624 5,209,540 5,310,036 4,988,790
Total shareholders Fund 2,092,577 1,690,030 1,354,566 1,131,145 969,102
Total liabilities 10,086,985 8,544,522 7,326,855 5,927,486 5,448,325
Returns to shareholders
Basic earnings per share (TZS) 1,090 863 584 420 289
Dividend per share (TZS) 361 286 193 137 96
Dividend cover 3 3 3 3 3
Net asset value per share (TZS) 4,185 3,380 2,709 2,262 1,938
Ratios (%)
Return on average Shareholders Fund 29 25 21 18 11
Return on average Total assets 5 4 3 3 2
Return on average Risk-weighted assets 7 6 6 4 3
Earning Assets To Total Assets 83 80 77 79 73
NPL Ratio 3 3 4 5 7
Gross loans and advances to Total 95 82 73 78 73
Deposits
Cost-to-income ratio 39 42 46 50 57
Non-interest income to gross income 33 34 31 32 28
Capital adequacy ratios

Tier 1 Capital 23.3 23.1 23.8 19.3 17.1
Total Capital 23.3 23.1 24.6 20.6 18.5

Creating
Investor Value
The year ended positively for NMB’s share price, and finally settling at TZS 4,500 by the end of the
with a remarkable 49% increase YoY to TZS 4,500 year. As a result, NMB’s market capitalization soared
from TZS 3,020 as of December 31, 2022 (37% to TZS 2.25 trillion in 2023.
YoY in USD terms). This exceptional performance
NMB shares maintained high liquidity within the
surpassed market indices, with DSEI declining by
marketplace. Throughout the year, an aggregate of
6.8%, TSI expanding by 10.9%, and the Banking
6.4 million NMB shares exchanged hands, amassing
and Investment Market Index registering a growth
a total turnover of TZS 26.16 billion and constituting
of 34%. The robust upswing in NMB’s shares can
12% of the overall market turnover. Over this review
be ascribed to the strong performance and dividend
period, trading prices fluctuated between the highest
payout —following the impressive results in the first
at TZS 4,880 and the lowest at TZS 3,000.
half of 2023, there was a significant 33% increase in
share price during Q3 2023, reaching TZS 4,600 on
September 30, subsequently peaking at TZS 4,880
4500
23
22
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2019 2020 2021 2022 2023

Share Price (TZS)
Highest 2,340 2,340 2,340 3,140 4,880
Lowest 1,980 2,340 1,680 2,000 3,000
Average 2,330 2,340 2,209 2,769 3,859
Closing price 2,340 2,340 2,000 3,020 4,500
Volume traded 90,042 28,001,182 14,984,202 11,341,919 6,404,816
Market Capitalisation (TZS billion) 1,170 1,170 1,000 1,510 2,250
(Based on Closing price)
Ratios
Price-to-earnings ratio (Based on average 8.06 5.57 3.78 3.31 3.54
price)
Price-to-NAV (number of times) (Based on 1.2 1.03 0.82 0.82 0.92
Average price)
Dividend yield (%) (Based on Average 4.12 5.85 8.74 10.33 N/A
price)

Strategy Review
Taarifa ya Afisa
Mkuu wa Fedha
“Katika mwaka wa Fedha wa 2023, Benki ilifikia
rekodi mpya ya mapato, ambapo, mapato ya jumla
yaliongezeka kwa asilimia 18 kutoka shilingi
trilioni 1.2 mwaka 2022 hadi kufikia shilingi trilioni
1.4 mwaka 2023. Mapato haya yamechangiwa
na ongezeko la mikopo kwa wateja na uwekezaji
kwenye dhamana za Serikali, pamoja na ongezeko
la miamala ya kibenki.”
Juma Kimori
Afisa Mkuu wa Fedha
Tangu tulipoandaa mkakati wa Benki na kupanga Matokeo haya yanaifanya Benki kuweka historia
malengo yetu kwa mwaka 2023, uchumi wa dunia nyingine ya kuongoza wa kiutendaji nchini Tanzania,
umepitia changamoto mbalimbali huku kupanda kwa kwa kupata faida kubwa zaidi kuwahi kutokea
riba kukiathiri sekta ya kibenki duniani kote. Pamoja katika sekta ya kibenki nchini Tanzania, na hivyo
na changamoto hizo Benki yetu ya NMB imeweza kuivunja rekodi tuliyoiweka mwaka 2022. Msisitizo
kufanya vizuri katika utekelezaji wa mpango mkakati na dhamira yetu ni kuhakikisha tunaendelea kupata
wake, huku tukishuhudia ukuaji mzuri wa biashara matokeo bora, yenye mchango chanya katika
yetu, uliochagizwa na ukuaji bora na kuimarika uchumi wa taifa letu, wanahisa na wadau wengine
kwa mizania ya Benki. Katika kipindi hiki, pia Benki wote wa Benki, ikiwemo jamii inayo tuzunguka.
ilifanikiwa kuongeza uwekezaji katika mageuzi ya Katika kuhakikisha hili, Benki imeendelea kuweka
teknolojia na ajenda nzima ya maendeleo endelevu. misingi imara itakayo hakikisha tunaendelea kukua
na kutoa gawio la kutosha kwa wanahisa wetu.
Hivyo basi, katika nyanja mbalimbali za kiutendaji
na kiufanisi, mwaka 2023 ulikua mwaka wa kipekee Mizania ya Benki pia imeendelea kukua hadi
na wa kujivunia kwa kila mmoja wetu. Kutokana na kufikia shilingi trilioni 12.2 kwa mwaka 2023 ikiwa ni
dhamira yetu ya kuhakikisha tunaendelea kukuza ongezeko la asilimia 19 ukilinganishwa na mwaka
thamani ya mchango wa Benki kwa wadau wote, 2022. Ukuaji huu ulichagizwa zaidi na ukuaji wa
tumeshuhudia matokeo bora na ya kihistoria, huku asilimia 28 wa mikopo kwa wateja, pamoja na
Benki ikiendelea kukua zaidi ikilinganishwa na ongezeko la asilimia 11 la amana za wateja.
mwaka 2022. Katika kipindi hiki, Faida ya Benki
kabla ya kodi imekua kwa asilimia 26 kufikia shilingi Mwenendo thabiti wa mapato
bilioni 775, huku Faida baada ya kodi ikifikia shilingi
bilioni 545 kutoka shilingi bilioni 432 kwa mwaka Katika mwaka wa fedha wa 2023, Benki ilifikia
2022. Faida hii inatokana na kuongezeka kwa rekodi mpya ya mapato, ambapo, mapato ya
ufanisi, kukua kwa mizania ya Benki, ubora na jumla yaliongezeka kwa asilimia 18 kutoka shilingi
umakini katika kusimamia mikopo, na kuongezeka trilioni 1.2 mwaka 2022 hadi kufikia shilingi trilioni
kwa miamala ya wateja katika kipindi hiki cha nusu 1.4 mwaka 2023. Mapato haya yamechangiwa
ya kwanza ya mwaka. na ongezeko la mikopo kwa wateja na uwekezaji
kwenye dhamana za Serikali, pamoja na ongezeko
57 | NMB Integrated Annual Report 2023 la miamala ya kibenki.
Mapato Halisi ya Riba • Kuongezeka kwa mapato yasiyo ya riba mwaka
2023 kumechangiwa zaidi na ongezeko la
Kutokana na ukuaji wa mikopo kwa wateja na asilimia 37 ya faida itokanayo na miamala ya
uwekezaji kwenye dhamana za Serikali, mapato fedha za kigeni hadi kufikia shilingi bilioni 65.8.
yatokanayo na riba yameendelea kukua mwaka
• Baada ya kufanya mapitio ya mfumo wetu wa
hadi mwaka. Ndani ya mwaka 2023 mapato ya
NMB wakala tumeweza kuongeza idadi ya
riba yatokanayo na mikopo yalikuwa kwa asilimia
mawakala zaidi ya elfu kumi na moja (ongezeko
24, na kufikia shilingi bilioni 958.8, huku mapato ya
la asilimia 42 mwaka hadi mwaka) hivyo
riba yatokanayo na uwekezaji kwenye dhamana za
kupelekea kuongezeka kwa mapato yatokanayo
Serikali yalikua kwa asilimia 14 na kufikia shilingi
na huduma za NMB wakala kwa kiasi cha
bilioni 208.8.
shilingi bilioni 6.5 (ongezeko la asilimia 19
mwaka hadi mwaka).
Gharama za riba kwa mwaka 2023 zilishuhudia
ongezeko la asilimia 47 hadi kufikia shilingi bilioni • Vile vile, mapato yatokanayo na huduma za
246 ukilinganisha na shilingi bilioni 167 mwaka 2022, NMB Mkononi yaliongezeka kwa asilimia 28
hii ni kutokana895
na kuongezeka kwa viwango vya hadi kufikia shilingi bilioni 86.9. Ongfezeko
riba katika masoko ya kifedha hivyo kusababisha hili linatokana na maboresho ya kidijitali
kuongezeka kwa gharama za riba kwenye amana tuliyoyafanya mwaka 2023.
na mikopo kwenye sekta ya kibenki ukilinganisha na
kipindi kilichopita. Benki imeendelea kuchukua hatua • Mapato kutokana na matumizi ya kadi
mbalimbali za kimkakati zenye lengo la kukuza yameongezeka kwa asilimia 11 na kufikia shilingi
amana za wateja zenye gharama nafuu na hivyo bilioni 33.
kupunguza ukuaji wa gharama za riba.
19% 14%
Mapato ya Riba
(TZS Bn)
6% 20%
2023 1,180
2022 954
23%
11%
2021 815
7%
Mapato ya fedha Ada zinazo husiana
za kigeni na mikopo
Mapato yasiyo ya Riba Huduma za kibenki Ukusanyaji wa
kupitia mawakala madeni sugu
Huduma za bima Ada nyinginezo

Benki imeendelea kufanya vizuri katika utoaji wa
huduma mbalimbali na uboreshaji wa mifumo yetu Biashara ya kadi
ya Kidijitali ili kuhakikisha wateja wetu wanaendelea
kupokea huduma zetu kwa uharaka na urahisi zaidi
bila changamoto yoyote. Mwaka 2023 tumeshuhudia Mafanikio makubwa ya ufanisi
ongezeko la matumizi mbadala ya njia za Benki
kidijitali hivyo kupelekea ongezeko la mapato yasiyo Benki imeendelea kuwa na ufanisi mzuri wa kifedha,
ya riba kwa asilimia 16 hadi kufikia shilingi bilioni sanjari na juhudi zake za kuendelea kuboresha
468, ikiwa na hivyo kuchangia zaidi ya asilimia 34 ya ufanisi katika maeneo yote ya uendeshaji Benki.
mapato yote ya Benki kwa mwaka 2023. Mwaka 2023, gharama za uendeshaji ziliongezeka
kwa asilimia 10 kutokana na mkakati wetu wa
Vidokezo vifuatavyo vinaangazia mabadiliko
makubwa ya Mapato yasiyo ya Riba:
Ukwasi Imara, Ufadhili kuwekeza kwenye ukuaji wa biashara, teknolojia
na uwekezaji kwa watu wetu. Nidhamu yetu katika
na Unyumbulifu katika udhibiti wa matumizi umeendelea kuleta matokeo
Chanya huku uwiano wa gharama za uendeshaji
Utendaji kwa mwaka na jumla ya mapato ukiimarika kwa alama 30 hadi
kufikia asilimia 39 mwaka 2023 kutoka asilimia 42
2023 mwaka uliopita.
Faida halisi
Benki inaendelea kuwekeza kwenye
TZS
maeneo ya kimkakati huku ikitilia mkazo
545.2
Bilioni
nidhamu ya matumizi na kuimarisha
zaidi ufanisi wa utendaji wetu.
Imeongezeka kwa 26% kutoka
shilingi 432 bilioni mwaka 2022 Tangu kuanza utekelezaji wa Mpango Mkakati wetu
wa muda wa kati, Benki imeshuhudia kuimarika kwa
hali ya juu kwa ufanisi na nidhamu ya matumizi.
Faida ya Mtaji
Mafanikio haya yanatokana na uwekezaji mkubwa
28.6%
tunaoufanya kwenye mageuzi ya kidijitali, rasilimali
watu, hivyo kushusha gharama za uendeshaji
kutokana ongezeko la tija, lakini pia kuchagiza
Imeongezeka kutoka 26% mwaka 2022
ongezeko zuri la mapato, hivyo kusababisha
kuimarika kwa ufanisi na kupunguza uwiano wa
Uwiano wa mtaji wa Jumla
gharama za uendeshaji na jumla ya mapato kutoka
kiwango cha juu cha asilimia 59 mwaka 2018.
23.26% Ili kuongeza tija, zaidi ya asilimia 50 ya

Imeongezeka kutoka 23.09% mwaka 2022
gharama zetu za uendeshaji mwaka
2023 zilitumika kwenye kuwekeza kwa
Gawio kwa kila Hisa wafanyakazi.
TZS
361
Limeongezeka kutoka shilingi 286 mwaka 2022
7%
17%
Thamani Halisi ya Mali

kwa kila Hisa
TZS 54%
4,185
Imeoongezeka kwa 24%kutoka shilingi
15%
3,375 mwaka 2022 7%
Jumla ya Malipo ya Gharama za stahiki Matumizi ya Jumla

za wafanyakazi
Wanahisa ya Miaka 3
Gharama za Uchakavu
kuhudumia majengo
+92%
Ongezeko la Bei ya Hisa ndani ya miaka 3
Gharama za matumizi
ya ofisi

Mizania imara utoshelevu wa mtaji jumla ukiwa asilimia 23.26, yote
ni juu ya asilimia 12.5 na asilimia 14.5 mtawalia
Mizania ya Benki iliongezeka kwa kiasi kikubwa inayohitajika kikanuni. Mtaji wetu unatupa nafasi
na kufikia jumla ya shilingi trilioni 12.2. Ukuaji huu ya kutosha kufanikisha malengo yetu ya kukua na
wa mizania umechangiwa na ongezeko la thamani kuhimili changamoto yoyote ya kiudhibiti inayoweza
ya mali na dhima pamoja na uwekezaji kwenye kujitokeza.
dhamana za Serikali. Ubora wa mikopo yetu kwa
wateja imeendelea kuimarika zaidi. Mwaka 2023, Ubora wa Mikopo
mikopo iliyotolewa kwa wateja iliongezeka na kufikia
shilingi trilioni 7.7 mwaka 2023 sawa na ongezeko la Ubora wa mali kwa ujumla umeendelea kuwa mzuri
asilimia 28 ikilinganishwa na mwaka uliotangulia. huku tengo la mikopo isiyolipika likipanda kidogo
kwa asilimia nne ukilinganisha na mwaka 2022.
Pia tumeendelea kushuhudia kuimarika kwa ukuaji Benki inaendelea kuimarisha mahusiano na wateja
wa amana za wateja, ikiwa ni kiashiria cha ubora wa na ukusanyaji wa madeni sambamba na uimarishaji
huduma zetu, na ukaribu wetu kwa wateja. Amana wa taratibu za utoaji wa mikopo. Uwiano wa mikopo
za wateja ziliongezeka kwa asilimia 11% na kufikia chechefu kwa mikopo ghafi ulikua asilimia 3.2
trilioni 8.5 mwaka 2023 zinazodhihirisha matokeo mwaka 2023 karibia sawa na kiwango cha asilimia
ya juhudi tunazozifanya katika kuboresha huduma 3.1 kilicho rekodiwa mwaka 2022, uwiano huu
kwa wateja. Benki inaendelea na juhudi mbalimbali umebakia chini ya uwiano wa sekta na matakwa ya
katika kuimarisha huduma na kutoa masuluhisho kikanuni ya asilimia 4.3 na asilimia 5 yaliyowekwa
mbalimbali ili kuendelea kuifanya Benki ya NMB na Benki Kuu ya Tanzania.
kuwa chaguo namba moja kwa Watanzania katika
mahitaji ya huduma za kibenki. Kodi
Katika mwaka 2023 tumelipa kodi jumla ya shilingi

bilioni 555.4 ikiwa ni ongezeko la asilimia 19
1,286
ukilinganisha na shilingi bilioni 467.3 ya mwaka
1,190 2022. Aidha, tulitajwa kuwa mlipa kodi mkubwa zaidi
895 na anaefuata kanuni na sheria za kodi Tanzania.
7,157
Huu ni mwaka wa pili mfululizo Benki inatajwa kuwa
6,410 mlipakodi mkubwa zaidi na wanaofuata sheria
5,679 na kanuni zaidi na Mamlaka ya Mapato, hivyo
kudhihirisha dhamira yetu ya kufuata kanuni na
taratibu.
2021 2022 2023

Ajenda ya uendelevu na utawala bora
Akaunti za biashara na akiba
Amana za Muda Azma yetu ya kuwa Benki inayowajibika kwa Jamii

na yenye utawala bora inaendelea kutupambanua.
Mtaji Madhubuti Mwaka 2023, Benki yetu ilipata tuzo ya ‘Benki
Salama Zaidi Tanzania’ na kupokea tuzo nne za
Benki imeendelea kuwa na mtaji madhubuti, pamoja uthabiti na nyingine tatu za mlipa kodi. Zaidi ya
na ukwasi wa kutosha. Hali hii inatokana na ubora hayo, tumefanikiwa kutoa hati fungani ya NMB
wa udhibiti wa sera zetu za udhibiti wa viashiria vya Jamii, ikiwa ni hatua muhimu katika mipango wetu
hatari ili kuhakikisha tunakuwa na mtaji na ukwasi wa uendelevu.
wa kutosha wakati wote. Mtaji wa Benki umeendelea
kuwa madhubuti kwani uwiano wa utoshelevu wa
mtaji mkuu ulikua asilimia 23.25 huku uwiano wa
Makadirio ya Kifedha
ya Benki
Muhtasari wa Miaka Mitano wa Benki 2023 2022 2021 2020 2019
Vipengele Vya Taarifa ya Mapato
Vilivyochaguliwa (TZS milioni)
Mapato yasiyo ya Mtaji 468,380 402,132 305,838 268,295 204,409
Jumla ya Mapato 1,405,618 1,191,768 985,678 839,460 726,784
Jumla ya mapato ya uendeshaji 1,321,183 1,110,588 872,549 720,148 626,374
Jumla ya gharama za uendeshaji 546,382 495,423 454,524 418,868 410,513
Jumla ya tengo la mikopo isiyolipika 84,435 81,180 113,129 119,312 100,410
Jumla ya faida baada ya Kodi 545,207 431,672 292,149 210,300 144,739
Vipengele Vya Mizania Vilivyochaguliwa

(TZS milioni)
Mikopo Halisi kwa wateja 7,706,925 6,014,603 4,653,933 4,108,891 3,590,006
Amana za wateja 8,465,608 7,594,832 6,662,889 5,325,450 4,916,551
Jumla ya mali 12,179,562 10,234,552 8,681,421 7,058,631 6,417,427
Uwiano wa Mikopo Isiyo na Vihatarishi 8,311,135 6,708,624 5,209,540 5,310,036 4,988,790
Jumla ya Mtaji wa wanahisa 2,092,577 1,690,030 1,354,566 1,131,145 969,102
Jumla ya Dhima 10,086,985 8,544,522 7,326,855 5,927,486 5,448,325
Mapato kwa Wanahisa

Mapato kwa kila hisa (TZS) 1,090 863 584 420 289
Gawio kwa kila Hisa (TZS) 361 286 193 137 96
Uwezo wa Gawio 3 3 3 3 3
Thamani halisi ya mali kwa kila hisa (TZS) 4,185 3,380 2,709 2,262 1,938
Uwiano (%)
Uwiano wa Faida baada ya Kodi na Wastani 29 25 21 18 11
wa mtaji wa Wanahisa
Uwiano wa Faida baada ya Kodi na Wastani 5 4 3 3 2
wa Mali
Wastani wa Uwiano wa Mikopo Isiyo na 7 6 6 4 3
Vihatarishi
Uwiano wa mali zinazozalisha na Jumla 83 80 77 79 73
ya Mali
Uwiano wa mikopo chechefu 3 3 4 5 7
Uwiano wa mikopo na amana 95 82 73 78 73
Uwiano wa Gharama na Mapato 39 42 46 50 57
Uwiano wa mapato yasiyo ya riba na 33 34 31 32 28
Mapato ghafi
Uwiano wa Utoshelevu wa Mtaji

Uwiano Mtaji Mkuu 23.3 23.1 23.8 19.3 17.1
Uwiano wa mtaji wa Jumla 23.3 23.1 24.6 20.6 18.5

Kuongeza thamani
kwa wanahisa
Ufanisi na matokeo ya kihistoria ya kiutendaji, ongezeko kubwa la asilimia 33 la bei ya hisa katika
vimekuwa na matokeo Chanya kwenye bei ya hisa Robo ya Tatu ya mwaka 2023 kufikia shilingi 4,600,
za NMB na ukubwa wa mtaji katika soko la hisa na Septemba 30. Bei ya hisa ilifikia kiwango cha juu
hivyo kuleta matumaini makubwa kwa wanahisa cha shilingi 4,880 kabla ya kupungua hadi kufikia
wetu. shilingi 4,500 mwishoni mwa mwaka. Matokeo
yake, mtaji wa soko wa NMB ulipanda hadi shilingi
Mwaka ulimalizika vema kwa bei ya hisa za NMB trilioni 2.25 mwaka 2023.
ikiongezeka kwa asilimia 49 mwaka hadi mwaka
kufikia shilingi 4,500 kutoka shilingi 3,020 Desemba Hisa za NMB ziliendelea kuwa na ukwasi mkubwa
31, 2022 (37% mwaka hadi mwaka kwa viwango vya sokoni. Kwa mwaka mzima, kulikuwa na jumla ya
Dola ya Marekani). Ongezeko hili lilizidi viashiria vya hisa za NMB milioni 6.4 zilizouzwa na kukusanya
soko ambapo fahirisi ya soko jumla (DSEI) ilipungua jumla ya mauzo ya shilingi bilioni 26.16 ikiwa ni 12%
kwa asilimia 6.8, wakati fahirisi ya kampuni za ndani ya mauzo yote ya soko. Mwaka 2023, kiwango cha
(TSI) iliongezeka kwa asilimia10.9, huku fahirisi ya juu kabisa cha bei kilifikia shilingi 4,880 na cha chini
kampuni za kibenki na Uwekezaji ilirekodi ukuaji wa kabisa kilikua shilingi 3,000.
4500
asilimia 34. Ongezeko kubwa la bei ya hisa za NMB
lilichangiwa na ufanisi mkubwa wa kifedha na malipo
ya gawio kutokana na matokeo ya kuvutia ya kifedha
katika nusu ya kwanza ya 2023 na kusababisha
23
22
23
23
23
23
23
23
23
23
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2019 2020 2021 2022 2023

Bei ya Hisa (TZS)
Bei ya juu zaidi 2,340 2,340 2,340 3,140 4,880
Bei ya chini 1,980 2,340 1,680 2,000 3,000
Wastani wa bei ya hisa kwa mwaka 2,330 2,340 2,209 2,769 3,859
Bei ya kufungia hisa 2,340 2,340 2,000 3,020 4,500
Kiasi kilichouzwa na kununuliwa 90,042 28,001,182 14,984,202 11,341,919 6,404,816
Thamani ya mtaji (TZS bilioni)* 1,170 1,170 1,000 1,510 2,250
Uwiano
Uwiano ya bei ya hisa kwa pato la kila 8.06 5.57 3.78 3.31 3.54
hisa**
Uwiano ya bei ya hisa kwa thamani ya kila 1.2 1.03 0.82 0.82 0.92
hisa**
Faida ya gawio kwa bei ya hisa 4.12 5.85 8.74 10.33 N/A
*Kulingana na bei ya kufungia
**Kulingana na wastani wa bei ya hisa kwa mwaka

Market Capitalization
As of 31 December 2023, NMB had a market capitalisation of TZS 2.25 trillion, making it the largest bank
and fifth-largest listed company in East Africa, after Safaricom (TZS 8.9 trillion), Tanzania Breweries Ltd.
(TZS 3.2 trillion), and MTN Uganda (TZS 2.5 trillion). This success reflects solid financial stability and
leadership, which has garnered significant confidence from the investment community.
#Rank Company name Country Industry Market cap (TZS bn)

1 Safaricom Plc Kenya Telecommunication 8,920
2 Tanzania Breweries Limited Tanzania Manufacturing & Allied 3,216
3 MTN Uganda ltd Uganda Telecommunication 2,527
4 Airtel Uganda Uganda Telecommunication 2.482
5 NMB Bank plc Tanzania Banking 2,250
6 Equity Group Holdings Plc Kenya Banking 2,034
7 Vodacom Tanzania Plc Tanzania Telecommunication 1,725
8 Tanzania Cigarette Company Plc Tanzania Manufacturing & Allied 1,700
9 East African Breweries Ltd Kenya Manufacturing & Allied 1,444
Ownership
The total number of shareholders as of 31 December 2023 is estimated to be 17,014 (2022: 17,078, 2021:
17,358). None of the Directors holds significant shares in the Bank.
15% - Other shareholders with

ownership below 2%
2% - Banque Pictet And

Cie Sa A/C Patrick
Schegg
35% - Arise BV
3% - Aunali
Fidahussein
Rajabali
3% - Sajjad
500 Mn
Fidahussein
Rajabali
i
4% - National Shares
Investments Plc
(NICOL)
5% - National Social
Security Fund (NSSF
Uganda)
32% - The Treasury

Registrar (Government)
Distribution based on December 2023 share ownership.

Dividend Policy Our Shares
The Bank has established a Dividend Policy which NMB Bank PLC’s shares are listed on the Dar es
governs dividend payout. Dividend payout is Salaam Stock Exchange (DSE). It is a publicly
proposed by the Board in line with the Policy, and listed company under the NMB ticker. NMB Bank
approved by its shareholders at the Annual General PLC holds a license under the Capital Markets and
Meeting. The directors also consider the provisions Securities Act of 1994, allowing it to be traded on
of the Companies Act 2002 and the Banking and the Dar Es Salaam Stock Exchange. The share
Financial Institutions Act 2006 regarding dividend registration for NMB Bank Plc. is identified by the
payouts. ISIN number TZ1996100222.
Dividend Payout Our Corporate Bonds
The Directors proposed a dividend payment of TZS Information regarding the trading tickets of listed
361 per share amounting to TZS 180,975 million NMB Corporate bonds in the Dar es Salaam Stock
out of 2023 profit. In 2023, a dividend of TZS 286 Exchange and Luxemburg Stock Exchange.
per share, amounting to TZS 143,125 million, was
approved and paid for the year ended 31 December NMB JAMII BOND_TZS
2022. NMB-2023/26. T1A
ISIN: TZ1996105270
The dividend payout ratio for NMB Bank remained NMB BOND TRANCHE 1 (SUSTAINABLE/JAMII)
unchanged, being 1/3 of profit after tax. The bank’s Interest rate: 9.5%
dividend payments have shown stability and growth
over the past 10 years, and its dividend yield NMB JAMII BOND_USD
averaging 6.36%. NMB-2023/26.T1B
ISIN: TZ1996105213
NMB BOND TRANCHE 1 (SUSTAINABLE/JAMII)
Dividend Overview Interest Rate: 6-Month USD Term SOFR + 2.50%
NMB JASIRI BOND

10%
9% 9% NMB-2022/25.T4
361 ISN: TZ1996104463
6% 286
NMB JASIRI BOND TRANCHE 4
4% 193 Interest Rate: 8.50%
137
96
2019 2020 2021 2022 2023
DPS
Dividend Yield

Proactive Engagement with Our
Investor Community
We have conducted over
Recognition
in 2023 20+
interactions with investors, analysts, and rating
agencies through a combination of virtual
discussions, conference calls, and face-to-face
Most compliant taxpayer
meetings. These interactions have aimed to present
awarded by TRA.
our strategy, highlight our performance, and provide
valuable insight into our prospects.
Largest Taxpayer in the category of

Financial Institutions in Tanzania Conducted quarterly results briefings for the
awarded by TRA. investment community and media.
Institution paying the largest taxes in Annual General Meeting held in June 2023 with all
Tanzania (All Sectors) resolutions passed with an average approval rate
90%
awarded by TRA. above
Best Bank for CSR in Tanzania 2023

awarded by Euromoney.
Coverage by over
Best Commitment to ESG Principles

Tanzania 2023
awarded by International Banker
10
research analysts.
Best Corporate Social Responsibility Timely and relevant disclosures of financial

Initiative Tanzania 2023 performance, corporate information, and material
awarded by Global Business & Finance announcements on NMB’s website
Magazine
Stable Credit rating

Safest Bank in Tanzania 2023
awarded by Global Business & Finance
B2+
Stable

2024 Investors
Calendar
The following were key events to engage the investment community in 2024.
First Quarter Second Quarter Third Quarter Fourth Quarter

2024 4Q and FY23 results 2023 Annual General AFSIC Conference 3Q results briefing
briefing, press Meeting 2024
conference and live
webcast.
FY’23 Investors Call 1Q23 Results Briefing, 2Q and 1H23 results Post results meeting
Investor call and live briefing, Investor Call with investors
webcast. and live webcast
ARISE B.V Annual Investors Breakfast

Conference
Integrated Annual
Report Issuance
Investor Relations Contacts
Investor Relations Support Office General Inquiries Email:
NMB Headquarters Officer General Inquiries Email:
PO Box 9213, [email protected]
Dar es salaam General Inquiries Phone:
Tanzania Tel: (General) +255 800 002 002,

While outside Tanzania +255 808 002 002

Business
Segments

Business Segments
Retail
Banking
Flibert Mponzi
Chief Retail
Banking Delivering excellent results
NMB’s Retail Banking had a strong year in 2023,
delivering strong income and balance sheet growth
while continuing to strengthen its customer base
through strategic investments in digital infrastructure
and technology.
We prioritize delivering an unmatched customer

experience by carefully assessing customer
requirements and introducing proposals that align
with their expectations. Consequently, we have
Retail Banking Total Income accomplished a remarkable 17.8% growth in overall
revenue, surging from TZS 893 billion in the previous
1.05 year to TZS 1.05 trillion in 2023. Additionally, we

have achieved strong operational efficiency gains
TZS Trillion by leveraging resources like technology and human
Up 17.8% from TZS 893 Bn in 2022 capital while maintaining a prudent approach to
cost management and implementing disciplined risk
Retail Banking Total Loans management strategies.
5.9
Retail loans and advances grew 15% YoY to TZS 5.9
trillion in 2023. Asset growth levels were sustained
TZS Trillion in line with the strategy, with strong double-
Up 16% from TZS 5.2 Tn in 2022 digit growth in the portfolio reflecting deepened
customer engagements, improved customer value
propositions, and enhanced customer acquisition
Retail Banking Total Deposits and retention strategies. Retail deposits also
grew steadily, increasing by 10% YoY to TZS 5.3
5.3
TZS Trillion
trillion, with continued enhancements in product
development and propositions supporting further
strengthening the deposit base.
Up 10% Year on Year
Maintaining our dedication to a customer-
centric ethos is at the heart of our strategy and
subsequent success. Our continued commitment to
technological and digital investment has paved the
way for a seamless, integrated Customer Journey,
streamlining the banking process while ensuring
security for our customers. The enhancement of
our State-of-the-art Mkononi app in 2023 marked
another milestone, offering Strong security and
convenience on our digital banking platforms. It also

facilitated more expedient processes and provided of customized online banking experience that allows
more optimal payment services. Our digital services Diaspora clients to open Bank Accounts with NMB
continued to attract interest among new customers, Bank, access their accounts, transfer funds, and
evidenced by a 6% uptick in NMB Mkononi App manage personal finances from anywhere around
users tallying over 5 million by year-end and the globe. NMB-Kwetu Proposition offers a seamless
clinching an impressive rate with 96% of all retail- digital document collection portal, the first of its kind
related transactions performed digitally. for a Tanzanian bank that provides the quickest
account opening turnaround time for diaspora clients
We sustained a strong Net Promoter Score for our
from anywhere in the world.
Retail banking at 59 for the year as a testament
to our ongoing efforts to uplift service standards Digital and Technology
and Quality. This focus has yielded strong growth
Our digitization agenda has demonstrated notable
in our customer base, welcoming 1.2 million new
achievements, with our digital banking propositions
customers, resulting in impressive double-digit
increasingly facilitating the integration of digital
growth of low-cost customer deposits. Retail
solutions into our banking services a testament
Banking total deposits have had a considerable
to our dedication to streamlining and enhancing
ascent along with robust expansion in Retail
banking services. This has resulted in a marked
Banking’s overall loan portfolio compared to last
shift over recent years towards alternative banking
year.
channels. In 2023, 96% of customer transactions by
In our Private Banking business tailored for High- volume were conducted digitally and 84% of our new
net-worth clients, we’ve launched innovative customers were onboarded digitally.
offerings and strategies to leverage emerging market
In alignment with the trend toward cashless
prospects effectively. By enhancing the expertise of
payment, we’ve capitalized on our digital payment
our relationship managers via specialized training
system, NMB-Lipa Mkononi. This QR code-based
and workshops, we have attracted additional
payment method simplifies transactions for our
clientele while bolstering our digital offerings.
customers, allowing them to make payments
This arm of the business has been recognized
through QR scanning or via a payment reference
as Tanzania’s premier provider of quality private
number on their mobile devices. Our QR-code base
banking services based on client experience and
increased by 22% in 2023. To continue leading in the
earned the title of Best Private Bank in Tanzania for
cashless payment industry, we refined our merchant
the year 2023 from Euromoney and International
onboarding processes and enhanced POS terminal
Bankers Award.
functionalities while strengthening and establishing
We launched the NMB-Kwetu (Diaspora) strategic merchant partnerships culminating in a 5%
proposition, a proposition of its Kind in the country. and 13% year-over-year growth in merchants and
NMB-Kwetu caters to both Tanzanian and non- POS terminals, respectively.
Tanzanian diaspora members by offering a variety
Our card solutions portfolio remains robust due
Retail Non-Funded Income to to increased penetration rates, resulting in a total
Retail Total Income of 4.8 million cards, a 16% growth year-over-
year and sustained advancement across all card
31.2%
Down 70 bps from 31.9% in 2022
products. We are committed to establishing strategic
partnerships to further expand our card business.
Awards
Best Private Bank for HNWI in Tanzania

2023 by Euromoney
Best Innovative retail Banking in

Tanzania 2023 by Global Business
Magazine
Best Retail Bank Tanzania 2023 by

Global business Magazine
Best Private Bank in Tanzania 2023 by

International Banker Awards
Best Innovation in Retail Banking in

Tanzania 2023 by International Bankers
Awards
Best Retail Bank 2023 by Global Banking

& Finance awards
Best SME Bank in Tanzania 2023 by

Global SME Finance Awards 2023

Bank for MSMEs: Leveraging MSMEs as
Catalyst for Inclusive Growth
The backbone of the economy and society MSMEs Special Agriculture Fund
in Africa are remarkably abundant and garner
attention due to their significant economic impact. A Special Agriculture fund finances the agriculture
They play a crucial role in Africa’s economic value chain at an interest rate of 9% per annum,
aspirations, with 95% of registered businesses almost half the current market interest rate. Over
falling under the MSME category. TZS 250 billion has been issued as a revolving fund.
The bank has taken this initiative to improve further
These MSMEs contribute to 83% of private sector access to credit for SMEs in the value chain, bridge
employment, making them a vital source of job the financing gap, drive sustainable growth of the
opportunities. Additionally, micro companies employ sectors, boost productivity along the agriculture-
50% of all private sector workers in Africa and value chains, manage post-harvest losses, and
contribute to 50% of the region’s GDP. Despite their stimulate job creation.
importance, the MSME sector in Africa currently
faces a funding gap of 331 billion dollars according
to IFC (2018). Jasiri Bond’s Impact to MSMEs
The MSME sector is crucial in driving the country’s Initiatives such as Jasiri Bond have facilitated to
economic growth. At NMB, we take a proactive reach more SMEs through sustainability credit-linked
approach in supporting MSMEs through our facilities.
business banking services. We offer a wide range
of tailor-made products, services, advice, platforms,
and solutions to cater for the unique needs of SMEs.
We aim to help them achieve their vision, create 2023 2022
employment opportunities, and generate wealth. TZS TZS
Jasiri Loans Number Number
Bn Bn
MB products include loans, overdrafts, working
N
Disbursed 3,078 57 3,205 74
capital finance, cash management products, trade
finance solutions, and asset financing. To MSE 2,994 42 3,116 57
To SME 84 15 89 17
MSME beneficiaries of Jasiri Bond 2023 - 2022

Loan Portfolio (TZS Bn) 2023 2022 2021
SME 213 299 213

MSE 379 68 379
Overall, the MSME asset book grew by 61% YoY.

Story
Name: Lucas Kavishe

Business: Cosmetics and Salon equipments
Location: Kariakoo, Dar es Salaam
Mr. Kavishe, an entrepreneur, owns a store in the Kariakoo

area that specializes in selling cosmetics and salon equipment.
In addition to his main store, he also operates small outlet
shops in various locations. 15 years ago, he ventured into the
cereal and cosmetics business before deciding to focus solely
on cosmetics. Starting with a small shop, he soon realized the
need to establish a relationship with a bank to facilitate growth,
leading him to NMB Bank. By accessing loans from NMB, he
was able to expand his business significantly. Subsequently, he
obtained Jasiri funds due to his high female employment rate
(over 33%) and products that cater to women’s needs. With
around 30 employees, 18 of whom are female, Mr. Kavishe
takes pride in serving women and believes that his products are
meeting their needs effectively.

Business Segments
Private
Banking
The Private Banking continued to acquire new Today, we’re proud to record 96% of clients’
clients and deepen existing relationships in 2023. transactions were conducted digitally. We continue
We closed 2023 with total client deposits of TZS 344 to introduce new features to help clients conduct
billion and a total loan book of TZS 172 billion. their financial transactions digitally and seamlessly
transfer funds. Furthermore, we continue to invest in
We support our clients holistically by delivering
our people to equip them with modernized and world
unique and relevant products and solutions,
class relationship skills.
including a full range of lending products and
customized solutions for the private banking To ensure smooth relationship management, Private
segment, to reflect the growing and emerging Banking clients are assigned personal Relationship
affluent market niche in rapidly developing Tanzania. Managers. Clients can also connect in person
to obtain specialised services in Private Banking
We also improved existing client relationships
lounges, which are strategically located across
responsibly by continuing leveraging partnerships
the country. Within the branch premises, a Private
with other lines of business across the bank to
Banking personnel is assigned to assist clients in
continue to improve customer experience. Our
their immediate vicinity.
partnership with Treasury banking, Wholesale
Banking and Other Business segments in Retail
Banking continues to yield benefits for our clients,
helping us serve entire clients by delivering the full
spectrum of our banking capabilities to each client.
Customer experience remains one of our major

priorities and we have continued to demonstrate a
Awards
relentless focus on our digital and people agenda.
We continuously strive to serve our clients with Best Private Bank for HNWI in Tanzania
greater speed, security, seamless and convenient 2023 by Euromoney
banking services. In 2023, we launched new online
and mobile features, such as the NMB-Kwetu a Best Private Bank in Tanzania 2023 by
new proposition of its kind in the Tanzania Banking International Banker Awards
Industry, catering the needs of Our Diaspora clients,
helping them to easily open an account digitally and
access a growing number of banking services online
anywhere around the world.

Net Promoter
Score
59
Strong brand, Customer Effort
Customer advocacy, Score (CES)
93
Accessibility,
Competitive
solutions
High financial service
Customer
experience and utility
Centricity
due to accessibility,
financial ecosystem,
and pan-banking
initiatives
90 Customer
Top customer
Satisfaction
focus ethos
87
Strong positive feedback
from customers

Complaints handling and redress Digital customer service support
management
The growth of digital products; as well as more
Our goal is to provide exceptional solutions and customers transacting outside the branch,
services that meet our customers’ expectations. We customers are also shifting to relying on digital
have invested in tools that help us better understand service support; with 2M+ calls received in 2023
and serve our customers. While the number of through FREE Contact Center # 0800 002 002 and
complaints is small compared to the huge volumes over 1,000 social media messages per day.
of transactions, our strong governance, policies and
checks to safeguard our goals, with procedures
in place to handle complaints as per the Financial Business Partners service support
Consumer Protection Regulations 2019.
In line with our aspiration to grow Wakalas and
Merchants, we launched a dedicated FREE Partner
Contact Center # 0800 002 001.
Creating better customer experiences
In our commitment to “delight customers”, in 2023,
we embarked on creating a customer experience Diaspora service support
framework (Customer Journey Mapping) to govern
the identification, prioritisation, and implementation As part of NMB Kwetu (Diaspora customer
of customer experience improvements that will proposition), we launched a dedicated Diaspora
positively contribute to customer growth by removing Contact Center # 0808 002 002.
barriers to customer onboarding, driving seamless
transactions and customer engagement to enhance
our service delivery and operational excellence.
Customer Experience
Delivering Excellent Results

Business Segments
Wholesale
Banking
Overview
Alfred Shao
Chief Wholesale NMB Bank is a prominent financial institution in
Banking Tanzania, serving a wide range of sectors and
customers, including private and public institutions
such as multinational corporations, agribusiness,
mining, development partners, and government
institutions. Our strength lies in our PanBanking
approach, which aims to deliver a comprehensive
set of services customized to address the unique
requirements of our clients. These services include
diverse solutions, such as structured financing,
global digital transaction services (such as
“Throughout 2023, Wholesale remittance, collections, payments, and integrations),
Banking sustained a consistent cash management solutions, trade finance options,
growth trajectory, showcasing project financing, and deposit services. With our
wide-ranging network, a diverse range of banking
commendable advancements in
products, a strong presence in the domestic market,
strategy execution while remaining rich heritage, and profound industry knowledge, we
flexible to adapt to evolving harness these formidable capabilities to strengthen
business landscapes while our commitment to becoming the favored financial
subscribing to a sustainability service partner for Wholesale Banking customers.
agenda.”
Total Interest Income

Loans
126 In 2023, Wholesale Banking continued to grow

steadily, achieving notable progress in implementing
TZS Billion its strategies. We placed even greater emphasis
Growth 78% YOY, 14% CAGR on vital economic sectors, supporting our clients’
expansion efforts. Our loan portfolio increased by
Total Income 88% year-on-year to TZS 1.97 trillion, surpassing the
(TZS Bn) five-year compound annual growth rate of 30%, thus
enabling businesses to contribute to the country’s
2023 126
overarching socioeconomic goals development.
2022 70.7 While nurturing healthy loan book growth, we
maintained a vigilant approach to asset quality
2021 64.7 through diligent liquidity and credit risk management
efforts. This resulted in enhanced portfolio health
2020 73.4
and positive improvements in our asset book
throughout 2023.
2019 74

Loans
1.97
TZS Trillion
Growth 88% YOY, 30% CAGR
Loans
(TZS Tn)
2023 1.97
2022 1.07
2021 0.65
2020 0.67
2019 0.79
Sector Coverage
8% - Transport and
Communication
16% - Agriculture
5% - Trade
6% - Building
0.35% - & Construction
Tourism
13% -
Other
Services
1,968 Bn 7% -
Loans &
Electricity
Advances
6% - Mining
& Quarry
18% - Gas
19% - Manufacturing 0.44% - Hotel &

Restaurant

Deposits • Trust Accounts
• Call Accounts
Deposits increased by 14.8% YoY, reaching 3.1
trillion, reinforcing a robust foundation to support • Internet Banking (NMB Direct)
our sustainable growth initiatives. This growth
reflects our dedication to fostering deeper customer
relationships, crafting tailor-made solutions, and Technology and Digital Initiatives
gaining a comprehensive understanding of their
needs. We upheld our commitment to delivering extensive
client-centric solutions by leveraging innovative
technology and seamless digital capabilities.
Throughout 2023, we remained dedicated to
Deposits
advancing our digital agenda, aiming to elevate our
3.1
ability to meet our clients’ evolving needs.
Our internet banking platform, ‘NMB Direct,’

TZS Trillion underwent continual enhancements, enriching
Growth 14.8% YoY, 22% CAGR functionalities and catering to our clients’ banking
requisites. The platform’s integration with corporate
Deposits clients’ ERP systems augments user experience
(TZS Tn)
and convenience. Further augmenting the Internet
banking platform remains a top priority, aligning
2023 3.1
with our vision of delivering unparalleled digital
2022 experiences and encouraging wider adoption of the
2.7
solution.
2021 2.2
Our integration with Hospital Management
Systems is a prime example of revolutionizing
2020 1.5
payment processes. This advancement underlines
our dedication to leveraging technology for the
2019 1.4
betterment of critical industries, ensuring swift,
secure, and efficient payment collections.
Product and Service Offerings Meanwhile, we’re developing a comprehensive
Full suite of wholesale banking solutions, including regional trade platform to address Africa’s unique
corporate lending, deposit-taking, trade-finance, and and evolving trade landscape. These initiatives
transactional banking. aim to optimize financial transactions, increase
efficiency, facilitate smoother cross-border trade,
• Structured Financing and stimulate economic growth within our region
• Syndications while leveraging Tanzania’s strategic geographical
• Asset Financing position as a trade gateway.
• Project Financing Simultaneously, our integration with the insurance

• Trade Finance ERP system is another testament to our commitment
to streamlining financial processes across industries.
• Global Digital Transaction Services This initiative enables efficient collection of
• Term Deposits insurance premiums, providing convenience and
• Chinese Desk reliability for insurers and policyholders.

Strategic Objectives and Future Outlook
• Focused efforts on fostering sustainable growth
within Wholesale Banking.
• Driving sector-specific strategies to deepen

market penetration and capitalise on growth
prospects.
• Emphasis on end-to-end digital and

technological enhancements to elevate client
experiences, introduce new products, and
streamline operations for greater efficiency.
• Strengthening collaboration with other

businesses through an ecosystem approach to
unlock opportunities within corporate supply and
value chains.
• Prioritize ongoing professional development

initiatives to empower our workforce and nurture
a culture of growth and development within our
workforce.
• Fortifying key strategic relationships and

partnerships for mutual benefit.
• Focus on enhancing and revolutionising the

client experience.
• Striving for operational efficiency and excellence

in service delivery.
• Commitment to sustainable business practices

that create enduring value.
Awards
Best Investment Bank Tanzania
2023 by Global Brands Magazine

Business Segments
Treasury Overview
The Treasury Business segment demonstrated
a remarkable performance, supported by strong
performance in various areas of the Treasury
Aziz Chacha
Treasurer business, including investments in Government
Securities, Interbank Placements, fixed-income
trading, and a strategic increase in the utilization of
alternative currencies for importation beyond the US
dollar.
The Treasury Division has remained committed to

effective Assets and Liabilities management and
maintaining a sound investment portfolio thus far.
This wholesome strategic approach allowed us to

manage the challenges posed by the headwinds of
volatile global market conditions.
Key Highlights
As a result, Treasury income increased by 29% to
• Strong Growth in Government securities
TZS 287.6 billion in 2023, up from TZS 223.5 billion
portfolio and Interest income.
the previous year.
• Raised Approximately TZS 400 billion in The Treasury’s Net interest income closed in
Jamii Bond Issuance. 2023 at TZS 215 billion, a 26% increase from the
preceding year. Non-interest income rose 36% to
• Disciplined execution of Treasury strategy.
TZS 73.0 billion, with foreign currency dealings and
translations income comprising 89% of total non-
interest income gains of Treasury businesses. The
Treasury Total Income
overall outcome results from strategic investments
287.6
in money market instruments and government
securities amidst liquidity difficulties.
TZS Billion
Up 29% from TZS 223.5 billion in 2023 Total Treasury Assets
Treasury Non-Funded Income 3.95

TZS Trillion
73.0
TZS Billion
Up 6% from TZS 3.72 trillion in 2022
Up 36% from TZS 53.4 billion in 2022

Liquid Assets Ratio
34%
Above 20% Regulatory Minimum

We also maintained a prudent investment portfolio to Acquisition of Yetu Microfinance:
increase interest and trading income.
We completed the acquisition and
Guided by our robust assets and liability integration of Yetu Microfinance Bank’s
management, we continued diversifying our funding assets and liabilities, which was under
sources to protect our portfolio against high risk the statutory supervision of the Bank of
and market volatility. The Bank closed the year with Tanzania; meanwhile, our operations
relatively stable funding and liquidity positions within remained without disruption. The acquisition
the regulatory limits. and integration process, encompassing
customer base transition and assets and
Borrowings remain well diversified over a range of
liabilities transfers, transpired smoothly
currencies and maturities; total borrowings account
without impacting existing customer service
for 14% of the Bank’s total liabilities as of December
continuity.
31, 2023.
Total Investment increased to TZS 2.3 trillion as

of the end of 2023 from TZS 1.9 trillion a year Looking Forward
earlier, with most of it being high-quality, low-risk
government securities. The outlook for 2024 remains positive.
Economic indicators suggest sustained
recovery from the pandemic and the spilling
impact of recent geopolitical tensions.
Our New MTN Programme Inflation is projected to remain moderate,
We successfully launched a 10-year Medium Term and interest rates are forecasted to
Note Programme. Under this Programme, we plan to normalize further. The investment climate
raise TZS 1 trillion for on-lending activities, including and business confidence are expected to
conventional and sustainable projects. This will continue improving markedly.
deepen NMB’s impact in driving inclusive socio-
We are committed to utilizing our resources
economic and sustainable growth in Tanzania while
and robust capabilities effectively,
positively driving the country’s transition towards a
maximizing our solid balance sheet, and
green economy.
strengthening our client relationships
to provide top-notch customer value
propositions.
Contribution to the Bank’s Total Income
21%
TZS 287.6 Bn

Championing the
Sustainable
Financing
Agenda: impact investors worldwide, further diversifying
NMB’s investor base and demonstrating the
bond’s broad appeal.
• The Target at the Opening was TZS 75 billion

with a greenshoe option of up to TZS 25 billion
Jamii Bond in TZS Tranche and USD 10 Million with a green
At NMB Bank, we firmly believe that business shoe option of up to USD 5 Million.
success and building a sustainable future must • The TZS tranche marked 284% oversubscription,
go hand in hand. mobilizing TZS 212.9 billion from the initial TZS
In line with our vision to champion a sustainable 75 billion, while the USD Tranche marked 730%
future through financing, in 2023, through the oversubscription, mobilizing USD 73 Million from
first tranche of our TZS 1 trillion Medium-Term the initial USD 10 Million
Note (MTN) Program, we issued a dual-tranche • Attracted over 5,600 Investors and collectively
sustainability bond, dubbed the NMB Jamii Bond. collected a historic amount of TZS 400 billion
The inaugural sustainable bond raised TZS 212.9 from both TZS and USD Tranche. This marks
billion and USD 73 Million, making the Jamii the largest Sustainability Bond ever listed in the
Bond the largest Sustainability Bond ever issued history of our market.
in the East African region.
The collective amount received from the Jamii

Bond (TZS 400 billion in total) is more than three “The success of our landmark dual-tranche and
times the amount that was earlier approved by inaugural Sustainability Bond offering is even
the Capital Markets and Securities Authority more exceptional against the volatile global
(CMSA) to raise at least TZS 75 billion with a market backdrop. Through this issuance and
green shoe of TZS 25 billion on the TZS Tranche
subsequent issuances under our Sustainable
and USD 10 million with a green shoe of USD 5
Financing Framework, we seek to embrace
million on the USD Tranche.
green financing and further demonstrate our
unwavering commitment to making a positive
Extraordinary Success of our Jamii Bond environmental and social impact so that we can
build a more resilient and brighter future for our
• The landmark transaction marks our first
country and the globe together.
Sustainability Bond under its current MTN,
following the global award-winning, TZS- We are very much aware that the market for
denominated ‘debut Social Bond’ (Jasiri sustainability bond issuance is growing at
Gender Bond) issued in 2022 under the
an impressive rate, and we look forward to
previous MTN.
unlocking new sustainability funding avenues in
• The dual-tranche sustainability bond the future.”
received robust demand from a wide range of
Aziz Chacha
investors, including local retail investors and
Treasurer

Jasiri Bond
Testimony
Name: Amina Hamidu Mwakai

Business: Small Scale Fishing
Location: Manga Pwani Zanzibar
Amina Hamidu Mwakai, a resident of Manga Pwani Zanzibar,

successfully accessed a loan from NMB through Jasiri proceeds
in 2023. Utilizing the loan, she ventured into the fish business
specifically sardines, procuring two small fishing boats and
employing six individuals, including two women. This enabled
her to initiate and efficiently manage her business operations.
Amina and her team, fish, prepare, and sell fried fish to both
wholesale and retail customers. As a result of her new venture,
Amina is now capable of offering improved financial assistance
to her family and has accomplished the construction of her long-
awaited dream house.
Allocation Status
Amount allocated as of Dec 2023
Since its issuance, Jasiri Bond has had a tremendous socio-

economic impact.
Total Loans Disbursed Total MSE Loans Total SME’s Loans Total Agri Loans
3,078 2,994 84 47

Total App
downloads
1 NMB Mkononi
Transactions
Million
+61%
Increase to
Internet Banking
Transactions
134 million
+8%
Increase in Volume

Investing in
Digital Transformation

Digital
Transformation
Technology
Review
Kwame Makundi
Chief Technology & Overview
Digital Transformation
In 2023, NMB Bank remained steadfast in its
commitment to digital innovation, investing
strategically to enhance our technological
capabilities. Our primary goal was to elevate
customer experiences and streamline internal
operations through digitalization.
Throughout the year, significant efforts and

investments were directed towards improving mobile
and payment services for our retail customers. By
“Digitalization remains our expanding our digital payments ecosystem with
pivotal area of focus to ensure embedded financial solutions, we aim to meet
our customers receive the best- customer needs seamlessly and securely.
in-class services by delivering Recognising the importance of a seamless customer

reliable and seamless technology experience, we continued to invest in our strategic
corporate, trade, and forex platforms. These
and innovation that fit their needs
investments were intended to ensure that both local
and provide convenience to our and multinational corporate clients had access to
customers.” top-notch services facilitated by agile platforms and
operational solutions.
Internally, we underwent a continuous

IT Systems Availability
transformation, focusing on cybersecurity and
99.76%
enhancing employee productivity through digital
solutions.
Looking forward, our strategic focus remains

Transactions through on leveraging technology to enhance customer
digital channels solutions through digitization, robust technology
architecture, data analytics, and cybersecurity.
96% These technological advancements serve as the

backbone for delivering winning propositions,
operational efficiencies, and future innovation.
This unwavering commitment to digital innovation

underscores our dedication to delivering exceptional
value to our customers and stakeholders.

Investing in Key Projects
We’ve channelled significant investment into critical
projects, including:
• Enhancing digital experiences through initiatives

such as digital channel transformation and NMB
Mkononi.
• Leveraging data as a strategic asset through our

enterprise data management initiative.
• Continuously evolving our technology

architecture, particularly in payments, branches,
and ATMs.
• Strengthening trust and security through robust

cybersecurity measures.
Widening Financial Inclusion

We recognise the importance of partnerships in
widening digital inclusion, mainly through DSS
platforms and collaborations with startups. Firstly,
the new DSS onboarding application advances
NMB towards the digital bank vision by providing
our customers with a seamless, omnichannel
onboarding experience, with the channel currently
accounting for +80% of accounts being opened.
Secondly, the bank has embraced the embedded
finance revolution wholeheartedly by forging solid
partnerships with fintech companies to test and
scale services thoroughly. In 2023, NMB achieved
remarkable success by actively engaging and
supporting various fintechs such as Laina, Cellulant,
Ongeza Tanzania, Habari Node, Wakandi, and
Digicash.

Evolving Bank Technology and changing legal and regulatory compliance
Infrastructure requirements such as Data Protection Law, GDPR,
SWIFT Customer Security Program, and PCI DSS.
Technology Investment
Data Privacy and Protection
Investing in technology remains a top priority for
NMB Bank. In 2023, we focused on upgrading our In adherence to the Data Protection Law of Tanzania
server infrastructure, the core banking system and and international regulations like PDPA and GDPR,
updating the network. respectively, the bank has focused on data privacy
mechanisms. A Data Governance Committee
• Server Infrastructure Upgrade: We oversees data management, including privacy and
successfully implemented a new Virtualized protection initiatives. Privacy policies, procedures,
technology-based server system, replacing and standards are established to safeguard
outdated standalone servers. This upgrade customer privacy, incorporating the latest legal and
improves performance and security, minimizing regulatory requirements.
vulnerabilities associated with previous setups.
To ensure customer privacy, the bank conducts
• Network Update: Implementing Software data protection assessments on each product and
Defined Wide Area Network (SDWAN) enhances service, including digital services. It implements
network performance, reliability, security, and security controls such as access control, data
operational cost efficiency. anonymisation, and encryption and adheres to
global standards.
• Core Banking System Upgrade: The upgrade
is designed to streamline complex banking
processes and facilitate smoother operations
across various bank functions, thereby Enhancing Service Management
enhancing the efficiency and effectiveness of
Ensuring high-quality service, including availability,
our services.
reliability, and security, remains a top priority.
Throughout 2023, we focused on maintaining high
uptime for critical systems by promptly addressing
Cyber security any issues. This proactive approach resulted in
an average uptime of 99% for critical systems. We
As outlined in the bank’s Information Technology
prioritize optimal network performance and service
Risk Management Policy, cybersecurity is
availability to ensure uninterrupted access to
recognised as one of the principal risks. The
essential banking services.
Enterprise Risk Management Framework ensures
effective cybersecurity risk management through
robust lines of defence, including the Technology
team as the first line, the Risk Management team as Enhanced Monitoring Capabilities
the second line, and the Internal Audit as the third
The bank has prioritised automation to enhance
line.
system monitoring capabilities, notably implementing
To address cybersecurity risks comprehensively, cellular robots. These robots detect events not
the bank has developed its Cybersecurity Strategy, captured on monitoring dashboards, promptly
considering emerging technologies such as Artificial notifying us of service disruptions, augmenting
Intelligence (AI) and cloud computing, geopolitical proactive response mechanisms, and ensuring an
impacts, evolving cyber threats like Ransomware, uninterrupted banking experience. Throughout the
fiscal year, our organisation achieved commendable
levels of operational stability, with the IT system and collections for our clients. Integrating with
boasting 99.76% availability, the ATM network over 20 wholesale clients, including corporate
maintaining a robust 96.62% availability, and the clients, government institutions, and fintechs,
branch network demonstrating a resilient 99.64% has significantly enhanced our ability to facilitate
availability, underscoring our commitment to collections, exemplified by the governments over
providing reliable services. TZS 3 trillion collection through the New GEPG v2.0
integration.
Medium-Term Strategic Focus 2023

Overview Elevating User Experience with the New
Mobile Banking Platform
Enhancing the Winning Proposition
The newly designed Mobile Banking Platform offers
In 2023, NMB Bank launched several digital
an enriched user interface, prioritising customer
initiatives to offer improved and novel banking
experience and functionality. The platform’s design
experiences. These initiatives have attracted
ethos centered on simplicity, placing users at the
new clients and retained existing ones while
forefront by embracing their local culture, values,
simultaneously reducing turnaround times and
and needs. This approach has resulted in a platform
expanding self-service and value-added offerings.
that elevates digital banking experiences and
In the retail banking segments, we introduced a transforms users’ interactions with their finances.
range of new services, including:
• A revamped Mobile Banking Platform (app

Expansive Offering
and USSD).
The new platform offers extensive services,
• Customer Onboarding platform (DSS
including digital loan solutions, fund transfer options,
application).
bill payments, investment opportunities, digital
• International Money Transfer (Outbound and savings, cash withdrawals, merchant payments,
Inbound) partnerships with Thunes and Terra- insurance solutions, and discovery features.
Pay.
• Mobile Device Financing in collaboration with

Embracing New Technology to Meet Client
Tigo and Vodacom.
Demands
• Automation of Government Salary Workers
In response to shifting client preferences, NMB
Loan.
Bank made significant technology advancements
• Banc assurance sales application. on the Mkononi Platform by integrating the React
Native framework. This move allowed us to develop
• Instant Card Issuance. native apps that provide seamless user experiences
across Android and iOS devices. Clients benefit from
These additions have contributed significantly
seamless, user-friendly interactions using a unified
to the bank’s growth, with the Mobile Banking
codebase and synchronised features. Moreover,
platform alone witnessing a remarkable 94% of total
our adoption of containerisation technology within
transactions conducted digitally and over 1 million
the new Enterprise Architecture Framework
downloads of the new app.
ensures scalability, flexibility, and reliability, thereby
In the wholesale business, we continued to offer enhancing clients’ digital experiences.
robust integration capabilities, automating payments

Driving Innovation for the Future Investing in Team’s
In 2023, NMB Bank achieved a significant milestone Capabilities
in its innovation journey by developing and deploying
services to support the proof of concept (POC) of
deposit ATMs for one branch. Since its pilot launch Throughout the year, our significant
on June 8th, 2023, these ATMs have facilitated investment persisted in upskilling our
over TZS 19 billion collections, showcasing their workforce. Concurrently, our efforts centred
potential to increase deposit mobilisation through on fortifying our teams by reinforcing
automated channels. The continuous innovation of attraction and retention strategies. This
our core banking system further enhances resource emphasis aimed to cultivate a robust cohort
productivity and human capital. of IT and engineers, pivotal in meeting the
evolving needs.
Improving Operational Efficiency

NMB Bank continues to prioritise operational Building Team Capacity
efficiency, streamlining processes to enhance the In our commitment to fostering a skilled
overall customer experience. Significant progress workforce, NMB Bank has undertaken
was made in automating banking processes, significant training initiatives. Specifically,
including Standing Instructions, Term Deposits, we have trained 15 staff members in
Fund Transfers, and Account Management. This offensive security, 4 in defensive security,
automation, supported by the latest technology 42 in agile methodologies, 85 in ITIL
deployments, has significantly reduced turnaround practices, and 8 in data science. The bank
times, with processes like Standing Instructions now remains dedicated to building capacity in
taking only 10 minutes compared to 2 hours. This emerging technology areas such as Data
synergy between the Business, Operations, and Science, Artificial Intelligence (AI), and
Technology teams underscores our commitment to Machine Learning. Through continued
transforming operations and enhancing customer investment in our people, we aim to stay at
service delivery. the forefront of technological advancements
and ensure our team is equipped with the
knowledge and skills necessary to drive
innovation and success in the digital age.

Future Trends and 2024 Key Focus 6. Enhanced Customer Journey: We are committed
Areas to simplifying and optimising every step of
the customer journey across digital platforms,
The financial services industry is undergoing ensuring seamless and intuitive experiences.
profound transformations, driven by emerging
technologies like blockchain and artificial 7. Talent Acquisition and Training: We will
intelligence, which are now poised to create enhance our talent acquisition pipeline by
exponential impacts. As we anticipate these shifts, collaborating with universities to acquire top
NMB Bank is strategically aligning its focus areas talent. Additionally, extensive future-ready
for 2024 to capitalize on these technological training programs are implemented for our IT
advancements. employees, aligning with global standards and
industry best practices.
NMB Bank aims to stay ahead of the curve by

Key Technology Changes: focusing on these key areas, leveraging technology
1. Blockchain, Robotic Process Automation (RPA), to drive innovation, efficiency, and superior customer
Artificial Intelligence, and Machine Learning: experiences in the dynamic financial services
These technologies will continue revolutionising landscape.
financial services sector operations, enhancing
efficiency, security, and customer experiences.
2. Adoption of Hybrid, Multi-cloud Infrastructure:

Enabling scalable and flexible infrastructure will
be critical to meet evolving demands and ensure
seamless operations across multiple cloud
environments.
3. Platform Modernization: We will prioritise

modernising our applications in alignment with
our Enterprise Architecture, enhancing agility,
scalability, and interoperability.
4. Accelerated Data Ingestion: By rolling out Data

Science capabilities in terms of skilled personnel
and advanced technology, we aim to expedite
data analysis and derive actionable insights.
5. Implementation of New Core Banking System:

Introducing a new Core Banking System will
streamline workflows and provide a user-friendly
workbench, enhancing operational efficiency
and agility.

Digital
Transformation
Our Digital Digital as an enabler of growth

Story In 2023, we revamped our Mobile banking platforms
and reinforced data protection and cybersecurity
as part of an ongoing risk management culture. We
Our digital platforms gained further strengthened our digital security to safeguard our
momentum in 2023. We are utilizing customers against financial engineering threats and
identity theft and ensure that we remain the safest
our digital and technological
Bank in Tanzania. We also rolled out our digital
investment across the bank to penetration campaign to attract customers to use
enhance capabilities and productivity digital platforms to manage their finances.
while driving growth in the customer In 2023, the NMB-Mkononi subscription increased
base and service excellence. 6% to more than 4 million customers at December
end. In a standout achievement, we continue to see
an increased number of new digitally onboarded
accounts, with a record of more than 924,000
Mkononi subscriptions accounts opened digitally in 2023, representing 84%
of all new-to-bank retail customers. In 2023, 96%
4.95 Mn of customer transactions were conducted through

digital channels.
Digital service activity continued to increase, with

Transactions on the NMB Mkononi (USSD & App)
Agency Banking Agents
increasing by 61% to 134 million in 2023, while
28,295
internet banking (NMB-Direct) transactions were
up 8% from 5 million in 2022 to 6 million in 2023.
WhatsApp Banking, launched in late 2021, gained
strong momentum during the year, complementing
Digitally onboarded the growing role of our social media platforms in
retail customers
providing real-time information.
84% At the same time, NMB continues to develop

strategic partnerships, advancing its activities in the
application programming interface (API) to provide
customers with more choice and embedding banking
services in partner apps.

NMB Mkononi
NMB Bank Mkononi users have significantly
increased over the past year, with millions utilizing
it daily. The platform has approximately 5 million
registered users. This increase in user engagement
has resulted in a notable monthly revenue increase,
skyrocketing from TZS 6 billion to TZS 9 billion
during this period.
Over the past five years, the NMB Mkononi

application has introduced numerous new services,
including an investment gateway for Investing in
Fixed Deposits and UTT AMIS. Through NMB
Mkononi, customers can access multiple products,
services, and solutions available in the bank’s
branches at their fingertips.
New Mkononi Users
+270k
NMB Mkononi
Transaction volume
134 Mn
Active Daily users
1 Mn
NMB Mkononi Revenue
Generated
86.9 Bn

NMB Mkononi significant growth underscores its status as a
compelling alternative channel
Transaction in Million over the years
102 96
83
2023 134 2022
51 47
Agency ATM NMB Mkononi Agency ATM NMB Mkononi
72
Awards
57
est Bank for Digital Solutions in
B
2021 Tanzania by Euromoney

Best Innovation in Retail Banking
in Tanzania by Global Business
Magazine
41
est Innovation in Retail Banking

B
Agency ATM NMB Mkononi
in Tanzania by International Bankers
awards
Quality, Productivity and

Innovation award by ATE

Digital
Transformation
Our Digital Solutions
Flex Malipo
Allows organizations (schools, churches, mosques

etc.) to monitor all payments and contributions to
their organizations conveniently and securely.
UmeBima App
Enables DSS, SFE, and all staff to sell insurance

products to both NMB and Non NMB customers.
NMB Mkononi
Digital portal streamlining customer’s business

finances with services such as pooling, netting,
reconciliations etc.
NMB Lipa Mkononi
Mobile payment solution contained a QR code that

stores merchant information to receive payment
through scanning or a LIPA number for normal
feature phones.
NMB Pesa Wakala
NMB Agent using a mobile phone to offer banking

services.

Real-time digital payments
Transfer funds to any other bank account in real

time.
Pesa Fasta
Allows our customers to send money to anyone who

has a mobile phone number in the country.
NMB Wakala
NMB Agents are equipped with point of Sale

(POS) devices to provide banking services to our
customers on our behalf.
NMB Internet Banking
Allows our customers to have full control of their

business banking in terms of user and access
permissions in a simple, convenient and secure
manner.
NMB ATMS
A wider range of ATM network, access ATM service

on more than 700 ATMs across the Country.
NMB Kwetu
Designed to meet financial needs of diaspora

community, Diaspora can now Digitally sign and
submit relevant documentation without needing to
visit a branch.
Our
People

Our People
Human Resources
Overview Employees
Emmanuel Akonaay NMB Bank proudly sustains a diverse workforce of

Chief Human 3,642 employees, comprising various talents and
Resources Officer expertise. Our workforce breakdown demonstrates
a commitment to inclusivity, with 48% female
representation and 52% male representation.
Additionally, we value diversity in leadership roles,
with women holding 31% of senior management
positions.
At NMB Bank, diversity defines our organization’s

fabric and underscores our commitment to inclusivity
and innovation. We take pride in being more than
just an employer; we’re dedicated partners in
“Our HR team has been fostering career growth.
instrumental in aligning our
Our distinctive strength lies in creating an
workforce with the company’s environment ripe with opportunities for growth,
strategic objectives, driving nurturing talent, and empowering each individual to
performance, and fostering a realise their potential. Beyond conventional roles, we
aspire to be catalysts for professional advancement.
culture of excellence.”
For example, 37 staff benefited from a Bursary
scheme whereby the bank spent TZS 258 million in
Employees 2023. These staff members were sponsored to study
multifaceted programs including undergraduate and
TZS 386 Mn
masters/post graduate degree, and professional
certifications.
Productivity Moreover, we champion continuous learning by

providing relevant and impactful opportunities for
48%
upskilling. In 2023, the Management and Board
of Directors approved an 8% increase in the 2022
Training Budget, making it TZS 5.3 billion in 2023,
Women for staff development. 227 training programs were
implemented, with 6,439 trainees, both from the
3,642 Head Office and Branch Network, an average of 28

staff per program.
Staff The bank also invests in e-learning through its LMS

(Learning Management System). This year, we
32%
surpassed the assigned licenses for usage, with
1,117 users and 89,000 eBook downloads.
Women in Leadership

Our Talent Strategy 1. Through the Female Future program, 1 female
staff member was promoted to cluster manager,
1 was promoted to Senior Manager, 1 was
222 59% promoted from Branch Manager (BM) grade

3 to BranchManager (BM) grade 2 and 1 was
New hires Internal appointment promoted to Senior Human Resources Business
(2022:64%) Partner (HRBP).
2. Trust but Verify training marked below significant
96.5% achievements;
Employee Retention Rate: a. Declining operational Losses: Witnessing a

(2022: 98%) consistent decline in operational losses.
b. Enhanced Branch Vigilance: Specific

Talent Acquisition and Retention branches displayed remarkable vigilance,
In the pursuit of excellence, NMB Bank has detecting and preventing fraud incidents.
implemented innovative recruitment strategies c. Process Enhancements: Tangible
to attract top-tier talent. We hired 222 new improvements in customer onboarding,
employees from the market throughout the year, Internet Banking, and teller transaction
leveraging digital platforms and targeted recruitment processes.
campaigns. This includes 11 new technical
employees working across the technology space, 3. Through the Relationship Manager’s academy, 2
from cybersecurity to IT infrastructure, and data candidates from the academy were promoted to
scientists in functions like risk, compliance, and become Relationship Managers.
credit.
4. Through Branch Manager’s academy, 35
Our focus on retention strategies resulted in employees were promoted to become Branch
a commendable retention rate of 97%, while Managers.
the attrition rate stands at 3.46%, emphasising
5. Overall, 308 employees were promoted, some
our commitment to nurturing and retaining our
through a direct promotion as per the bank`s
exceptional workforce.
promotion policy and others through a
competitive recruitment process.
Employee Training and Development

(Future-fit-workforce) Workforce Development
Investing in our employees’ growth remains a

cornerstone of our HR initiatives. We’re proud to
report a 54% increase in employee participation in
5.3 Bn 227
our professional development programs compared Training Budget Training Programs
to the previous year. Notable outcomes were (8% Increase)
highlighted for the 2023;
TZS 258 Mn
Bursary Scheme

Employee Compensation and Benefits Wellbeing, Health, and Safety
At NMB Bank, we prioritize our employees’ Employee well-being and safety are paramount
well-being and offer competitive benefits & at NMB Bank. We bolstered our health and
compensation packages. This year, we enhanced safety protocols throughout the year, ensuring
our staff loan benefit, improved parental leave compliance with occupational health and compliance
policies, and revamped our incentive structures to requirements and standards.
align with individual and team achievements. Our
comprehensive benefits package contributed to a
lower attrition rate of 3.5%. Corporate Culture and Values
The core values of integrity, collaboration, and
innovation continues to shape NMB Bank’s
Performance Management corporate culture. We actively promote a culture
Performance evaluation at NMB Bank is a of inclusivity, respect, and ethical behaviour. Our
collaborative process to foster growth and values resonate throughout our HR practices,
recognition. Our robust performance management contributing to a harmonious and productive work
system integrates regular feedback sessions and environment.
goal-setting exercises. In line with our commitment
In adherence to our strategic priorities, we’ve
to transparency, 92% of employees participated
placed significant emphasis on transforming
in performance reviews, fostering a culture of
our workplace into an inspiring and dynamic
continuous improvement and accountability.
hub, pivotal for delivering unparalleled customer
experiences and driving exceptional performance.
Throughout 2023, we intensified our focus on the
Diversity, Equity, and Inclusion (DE&I) culture transformation journey, achieving significant
milestones (an 89% completion rate) across critical
NMB Bank remains dedicated to fostering a diverse
strategic dimensions. This means that out of the 56
and inclusive workplace within its institutional
interventions designed to address different gaps, 50
framework. Our Diversity, Equity, Inclusion and
were closed by the end of 2023.
Belonging policy and initiatives, including training
programs and resource groups, have driven
positive outcomes. We are proud to report a 6%
increase in women in top management positions, Future HR Strategies
reaffirming our commitment to equity and inclusivity.
Looking ahead, NMB Bank remains committed to
This commitment is not merely a statement but a
furthering our HR initiatives. We aim to introduce a
continual process, evidenced by ongoing initiatives
revised mentorship framework, expand remote work
that extend through 2023.
policies, and implement agile HR practices to adapt
Each passing year marks significant advancements to evolving workplace dynamics. These strategies
in fostering gender diversity, with female align with our vision to empower our workforce and
representation comprising over 48% of our total drive sustainable growth.
workforce and exceeding 31% in leadership roles.
These statistics reflect our commitment and tangible
progress in creating an environment where diverse
voices are heard and respected, propelling us
toward a more inclusive and representative future.

Looking Ahead
Awards
As we stride into 2024, our vision remains resolute:
to propel our organisation towards greater heights of
excellence and innovation. Building upon the strong
foundation laid in the previous year, we are poised
to embark on an ambitious trajectory of growth, NMB Bank achieved remarkable
transformation, and resilience. recognition at the recent awards in
2023 ceremonies:
Our primary focus will be further amplifying our
employee-centric approach. We are committed to
nurturing an environment that fosters productivity,
MB Bank was honoured as the
N
creativity, and empowerment. We aim to elevate
overall runner-up for the Employer
our employee engagement scores to new heights,
of the Year Award by the esteemed
nurturing a workplace where every individual feels
Association of Tanzania Employers
valued, motivated, and empowered to contribute
(ATE).
their best.

The cornerstone of our strategy for 2024 is centered
on talent, innovation, and adaptability. We are Securing the runner-up position
primed to attract and retain the brightest minds in in the Private Sector for the ATE
the industry, further augmenting our talent pool. Employer of the Year Award 2023
Investing in cutting-edge technology and fostering further highlighted NMB Bank’s
a culture of innovation will be pivotal in maintaining dedication to excellence.
our competitive edge and enhancing customer
experiences across our services.
Notably, our commitment to Gender

Empowerment was acknowledged
as NMB Bank was honoured as the
Overall Winner at the Tanzania
Gender Equality Awards 2023 by
the ATE.
elebrating our leadership, Ms. Ruth

C
Zaipuna, our CEO, was bestowed
with the esteemed title of Best
Tanzania Banks CEO of the year
2023 by Africa 4.0.

Key Employee Figures 2023 2022 2021 2020 2019
Female staff (in %, Headcount) 1
Female ExCo 31 25 25 25 22
Female Head of Department 30 29 32 33 36
Female Senior Managers 30 26 21 25 31
Female Managers 33 32 31 30 30
Female Officers 52 52 52 52 51
Total female staff in % 48 48 48 48 47
Age (in %, headcount) 2
20 - 29 years 3 2 1 1 0.2
30 - 39 years 51 50 50 47 47
40 - 49 years 38 38 39 40 42
50 - 59 years 8 10 10 11 10.8
Division (in %, Headcount) 3
Retail Banking 81 81 81 82 82
Wholesale Banking 2 2 2 2 2
Treasury Banking 1 1 1 1 1
Other 16 16 16 15 15
Total in % 100 100 100 100 100
Employment type/Contract (in % of total staff)
Permanent-term Employment 79 84 86 88 87
Fixed-term Employment 21 16 14 12 13
Total in % 100 100 100 100 100
Other Metrics
Employees 3,642 3,544 3,482 3,471 3,452
Women in Leadership % 32 31 31 30 30
Internal mobility/hires % 59 64 64 57 47
Internal Hires by gender (women) % 36 40 30 26 39
Employee retention rate % 97 98 97 97 95
Age Cluster in % Headcount
50 - 59 years
8%
20 - 29 years Women
48%
3%
40 - 49 Youth
3,642 33%
years
30 - 39
38% years
Employees 51% 20 - 35 years

Sustainability
Agenda

Sustainability
Agenda
Our long-term
value creation
purpose
At NMB Bank, we believe that Sustainability Our priorities are:

consideration is not just a corporate responsibility
but a strategic imperative that is integral to driving • To be an organization that contributes
business resilience, innovation, competitiveness, positively to the country’s sustainable
and long-term value creation. By embracing economic growth agenda.
sustainability as a core business principle, NMB • To be a responsible organization with a
impacts the community and positions the bank great sense of social and environmental
for success in an increasingly complex and responsibility and stewardship.
interconnected global landscape.
• To drive shared value through community
The communities that we serve and businesses impact investments
alike, face several challenges. These challenges
include, environmental challenges, and more so the
threat of irretrievable harm being done to our planet.
Other pressing issues are developmental and social, Coverage and Reporting Principles:
including poverty, unemployment, gender inequality,
This Sustainability Report is approved by the Board
and the impact of new technologies on data privacy.
and is prepared in consideration with the following
As a leading bank in Tanzania, it is our firm belief regulations, standards and guidelines:
that companies such as ours have a central
• Tanzania Financial Reporting Standards I
role to play in seeking to find solutions to these
(TFRS1)
challenges. We firmly believe that by ensuring the
sustainability of our operations, strengthening our • Dar es Salaam Stock Exchange Listing Rules
clients’ relations, and accelerating our social impact 74 (8) on Sustainability Report, and per the
investments, we will continue to be an important Guidelines specified under Attachment 4 to
vehicle for long-term value creation in Tanzania. Our the Third Schedule.
ambition is to be the region’s leading bank, driving
• The Global Reporting Initiative (GRI)
the Sustainability agenda.
Standards – Core Option, issued in October
Our approach to sustainability is therefore guided 2016 and the G4 Financial Services sector
by this sense of purpose: to create value for the disclosures by the GRI Global Sustainability
long term, by managing our business in an ethical, Standards Board
balanced and responsible way, with long termism at
• Recommendations of the Task Force on
the center of all our decisions.
Climate-related Financial Disclosures (TCFD)
in June 2017

Reporting principles
The content of this report follows the GRI Standards
Reporting principles.
Principle 1 - Stakeholder Inclusiveness
We identify key stakeholders, engage them and

respond to the key topics and feedback received.
Principle 2 - Sustainability Context
We present performance in the broader context of

sustainability.
Principle 3 - Materiality
We focus on matters that impact on business growth

and are of importance to our stakeholders.
Principle 4 - Completeness
We include coverage of material topics and their

boundaries to reflect significant ESG impact, and to
enable stakeholders to assess our performance in
the reporting period.
We have structured this Sustainability section by

looking at our Entity model in terms of the inputs;
material issues driving our strategy, our impacts
(positive and negative), and how they respond to the
needs of our key stakeholders. It is our great hope
that this report will be useful to our stakeholders.

Sustainability
Purpose
Model &
Strategy
Strategic Sustainable
Pillars Operations
Ambition Operate a responsible

Our sustainability strategy is based business with the highest
on our GRI materiality assessment ethical standards to
and guided by the UN SDGs. preserve integrity and trust
Focus Area 1. Corporate

governance,
compliance and code
of conduct
Climate Sustainable
Risk Financing 2. Risk management and
cybersecurity
3. Community
investment
4. Tax transparency
5. Best employment
Sustainable Practices
Operations Financial
Inclusion
Commitments • Drive best in class
governance in the
region, and continue
to enhance ethical
banking practices
• Maintain industry
leading data privacy
and information
security
Enablers Sustainabilty governance

and policies
To create sustainable value for our stakeholders
Sustainable Climate Financial

Financing Risk Inclusion
Provide inclusive and Support the transition to Drive financial inclusion

innovative financial a net zero economy and agenda in Tanzania
services to drive manage climate change
sustainable economic risks
growth, whilst reducing own
GHG emissions
1. Grow portfolio of 1. Strengthening Climate 1. Mass Account

green and social Risk Governance Opening
eligible loams
2. Environmental 2. Micro credit
2. Gradual reduction of and social risk
3. Extending our Wakala
exposure in high-risk management (ESRM)
footprint
sectors
3. Reducing impact of
operations
• Enhance efforts to • Finalize on-going • Continue to lead and

mobilize funds to emissions baselining champion the financial
finance transition to and setting future inclusion agenda in
low carbon economy decarbonization Tanzania
targets
• Accelerate • Onboarding of more
environmental than 1.5 million
stewardship efforts customers in 2024
Targets, KPIs Training and Stakeholder External partnerships Reporting and

and rewards upskilling management and and commitments disclosures
communications
Sustainable Expanding Digital and Technological
Offerings & Capabilities
Operations
Summary +84% 96%
of clients of transactions made outside
on-boarded digitally the Branch
Sustainable Operations
(Responsible practices) Creating Social Impact
CSI spend Employment Volunteerism
4.2 186 2,516

participated
Best Bank in Tanzania 2023 in community
Euromoney Excellence work through
TZS Billion Branches Staff
Awards 2023 the CSI
(2022: TZS
matching up
Best Bank in Tanzania 2023
Global Business and
2.9 billion)
20,300+ initiative
Finance Magazine Impacted Tanzanians
Nuru Yangu scholarships (2022/2023)

Employment Practices
130
Best Employer of the Year Responsible Tax Management Community Impact Awards
2023, Runner-Up in the
overall winner category
Best Private Sector

Employer 2023, Runner-up
Overall, winner: Largest Best Corporate Social
Quality, Productivity, and Taxpayer In Tanzania Responsibility Initiative
Innovation Award Tanzania 2023 Global
Overall, winner: Most
Business & Finance
Best Employer - Gender Compliant Taxpayer in
Magazine
Equality and Equity Award Tanzania
Best Bank for CSR in
Largest Taxpayer: Financial
Tanzania 2023 Euromoney
Institutions category
Awards for Excellence 2023

Sustainable Jasiri Bond Dashboard
Financing
Summary 100% 197% #1
of net proceeds oversubscription Bank in sub-
disbursed before listing in Saharan Africa to
by Dec. 2022 the Dar es Salaam list its gender bond
Sustainable Financing Stock Exchange in the Luxembourg
(Responsible Banking) (DSE) Stock Exchange
100% 74.26 6,100+ 70%

of Jasiri Bond allocated TZS Billion loans disbursed to of loans
to Women-led or Owned women led MSMEs guaranteed
raised against a
Businesses in the last 2 years to women
target of TZS 25
entrepreneurs
billion and a green
through the
shoe option of TZS
partnership with
15 billion
Africa Guarantee
Fund
Jamii (Sustainability) Bond Dashboard
Debut Issuance of a Dual tranche Sustainability Bond. Dubbed Jamii Bond.
TZS tranche mobilized USD tranche mobilized
212.94 284% 73 730%

TZS Billion Oversubscription USD Million Oversubscription
The net proceeds will be used to finance eligible green and social assets in line with the Bank’s
sustainability Financing Framework (in adherence to the ICMA Sustainability Bond Guidelines)

Climate Risk Financial
Summary Inclusion
Summary
Climate Risk has been
Intergrated as one of
Principle Risk types in the
ERMF
New Accounts onboarded in 2023
The Bank is in the final

stages of enhancing its
Environmental and Social 1.2
Policy (E&S) framework to Million customer accounts
address climate-related risk
MSMEs Loans
Finalizing emissions
baselining and setting future
decarbonization targets
47,181 777
Total Number Amount in
Finalizing the creation of the
of loans TZS Billion
Sustainability Governance
(2022: TZS
Framework 690 Billion)
Financial Inclusion Awards:

Environmental stewardship
commitment
1.2 Best Retail Bank Tanzania & Most

Innovative Retail Bank Tanzania
Million trees planted Global Business Magazine
Best Retail Bank in Tanzania

Global Banking & Finance Awards
Best Retail Bank & Best SME

Bank in Tanzania
International Business Magazine
Best SME Financier of the Year

Global SME Finance Awards 2023

Governance
Summary
Cyber Security: No material
instances of data loss
Preventing Financial Crime:

No material instances
No material instances of
non-compliance concerning
fair dealing
Enhanced Board oversight
Governance Awards:
Overall, Winner: Most Compliant

Taxpayer in Tanzania
Safest Bank in Tanzania Global

Business and Finance Magazine
Best Commitment to ESG

Principles Tanzania 2023
International Banker Banking
Awards 2023

Sustainable Sustainable
Operations Financing
At NMB Bank, our core belief lies As a leading bank in Tanzania, we
in conducting ethical practises that believe we have an essential role in
are environmentally and socially facilitating and promoting a sustainable
responsible. We believe in creating future. Supporting sustainable and
value for all stakeholders, while responsible growth, including delivering
meeting the environmental, social the UN Sustainable Development
and governance challenges. Our Goals (‘SDGs’), represents a significant
decisions and operations are guided opportunity for the bank. In pursuing
by a strict sense of long-termism and this opportunity, we continue to provide
take into account environmental and products and services that promote
societal considerations in our day- to- sustainable development and conduct
day business operations. We pride our business in a fair and responsible
ourselves in complying with the law manner. This includes advancing
and do not take any business decisions responsible financing and facilitating
that are seen or perceived to be seen a just transition to net zero carbon
violating the letter or spirit of the law. emissions.
Strong internal controls and governance
practices are in place to ensure, we
remain compliant.
We provide an inclusive work

environment which fosters innovation
and nurtures talent for professional and
personal growth for all our employees.
We are aware of our responsbility

to manage our direct environmental
footprint and remain ever so committed
to reduce the impact of our operations
on the environment. We seek to adapt
sustainable practices that will reduce
the impact of own operations, whilst also
influencing our supply chain towards
sustainable practices.
We are committed to paying our share

of taxes and we continue to make
impactful social-economic contributions
to the communities in which we operate
through community investments.

Climate Financial
Risk Inclusion
We recognise climate change as one of Over the years, NMB bank has
the most significant risks facing our planet. remained a champion in promoting
Climate risk is central to our sustainability financial inclusion in the country
agenda at NMB as we look to limit the impacts by reaching out to the unbanked
that result from the transitional or physical communities. Since our inception in
effects of climate change. We continue to 1997, we have been instrumental in
work on the measures required to address making sure that those who are banked
climate change, to mitigate the impact of are benefiting from– and where those
our operations on climate and to support a who aren’t included have an opportunity
transition towards lower-carbon operations to join, the financial mainstream,
and products. participate in the formal economy, and
build more self-determined lives.
The Bank is in the final stages of enhancing
its Environmental and Social Policy (E&S) Leveraging on technology and our vast
framework to address climate-related risk. network which touches every corner of
The Bank’s Enterprise Risk Management our country, each year we bring millions
Framework for risk identification, mitigation, of Tanzanians into the formal banking
and reporting (including socio-environmental) sector. Our financial literacy program
identifies risk elements and assigns equips Tanzanians with important
overall mitigation and risk management knowledge that is critical for accelerating
responsibilities within the Bank. The E&S the financial inclusion for the unbanked.
Policy to be enhanced will ensure climate-
related factors are given due consideration in
lending decision-making and clearly articulates
mitigants to address identified climate-related
risks. The policy will also provide relevant
criteria against which clients and transactions
are screened, as well as excluded sectors that
the bank will not finance.
So far, the Bank has established a dedicated

unit within the Credit Directorate to manage
Environmental and Social Risks associated
with lending operations.
The Bank continues to strengthen capabilities

to support our overall ambitions and to deploy
relevant tools that enable the Bank to measure
and monitor our portfolios and alignment
towards supportive climate efforts consistently.
The Bank aims to adopt relevant, applicable
standards wherever possible to allow for
compatibility and efficiency across industry
peers as much as possible. NMB Integrated Annual Report 2023 | 120
Sustainability
Agenda
Progress on
Sustainable
Development Goals
(SDGs)
NMB’s business contributes directly to the SDGs
Agenda 2030. We have a firm commitment towards
the Sustainable Development Goals. We play a
crucial role in promoting sustainable development
in Tanzania and across the East Africa region. With
our vast resources and expertise, we have been
instrumental in addressing key challenges related
to financial inclusion, poverty reduction, agriculture
development, MSMEs financing, personal financing,
employment generation, and recently environmental
sustainability.
With our operations touching real lives, communities

and the economy, we therefore remain ever so
committed to driving progress towards achieving
SDGs. We have chosen to focus on the following
SDGs which we believe we can make meaningful
contributions to, and after taking into account the
markets we operate in.

Sustainability & ESG Metrics Monitoring
Climate and Environment Impact Metrics
ESG ESG Metric Monitored Progress Progress SDG Mapping

Category 2023 2022
Climate Dedicated Sustainability and TZS 0

Action Climate Budget Commitment 2 Billion
Climate Action Conferences / 3 1

Events supported
Number of dustbins >200 >150

supported to enhance clean
environment
Climate /ESG Collaborations Partnership N/A
and partnerships with TFS
Value of Disaster Recovery > TZS 70 N/A

support to the Community Million
Tree Planting Tree Planted 1,200,000 N/A
Dedicated Sustainability and TZS 155 N/A

Climate Budget Commitment Million
to tree planting intuitive
Beekeeping Beehives donated to 500 N/A
beekeeping groups
Beekeeping groups 15 N/A

supported
Energy Electrical energy 14% 12%

Efficiency consumption reduction
Number of branches using 175 150

LED lighting
Use of LED lighting adoption 100% 100%

at HQ and Training Centre
Clean Energy Number of Motor Vehicles 8 2

transition converted to use CNG
Number of Branches piloting 1 N/A

using Solar Energy

Sustainability & ESG Metrics Monitoring Continued
Climate and Environment Impact Metrics Continued

Category 2023 2022
Waste Volume of paper waste 32 tons N/A

management recycled
GHG Total Greenhouse gases 14,812 tons 12,173 tons

Assessment emitted by internal operations
Climate Introduction of Climate Risks 1 N/A

Governance Management Policy
Establishment of 1 N/A
Environmental and Social
Credit Risk unit
Social and Community Impact Metrics

Impact to the Value of Corporate Social TZS 4.2 Billion TZS 2.9 Billion
Community Responsibility budget spent
NMB Marathon Donation N/A TZS 600 Million

toward Fistula treatment to
women
Donation toward Muhimbili TZS 350 Million N/A
Maternity Ward
Donation toward Building TZS 600 Million N/A

of School in Zanzibar
(Makunduchi Nursery School)
Education Number of Scholarship 65 64
Support offered
Value of Scholarship support TZS 436 TZS 286.5

offered Million Million
Number of School Desks 15,500 68,850

Donated
Number of schools that 247 459

received the Desks
Donations

Social and Community Impact Metrics Continued

Category 2023 2022
Diversity, Percentage of Women 48% 48%

Equality and employees in the total
Inclusion workforce
Percentage of women in 32% 31%
Senior Leadership positions
Percentage of Youth in the 33% 32%

workforce (Below 35 years)
Number of Staff with 13 11

Disabilities
Certified as EDGE Access for Edge (Assess) Edge (Assess)

upholding Gender Equality Certified Certified
Youth and Number of NMB customers 2,450,300 1,964,048

Women who are women
Economic
Empowerment
Percentage of Women 37% 32%
Customers in the NMB
customer base
Value of loans disbursed to TZS 1,565 TZS 1,295
women Billion Billion
Number of youth customers 3,252,808 2,765,106
Percentage of Youth active 70% 46%

customers
Number of youth reached Over 652,000 Over 503,000

through the GO NMB
programme
Number of women reached +7,000 +4000
through the Jasiri Business
Clubs and provided Financial
Literacy

Social and Community Impact Metrics Continued

Category 2023 2022
Financial Total number of NMB 7,100,000 5,978,886

Inclusion customers
Total Number MSME 386,417 233,603

customers
Total value of loans to MSME TZS 777 Billion TZS 690 Billion
customers
Total Number of NMB Agents 28,295 19,870
Total Value of transaction TZS 55 Trillion TZS 25 Trillion

through Agents (Wakala)
Total Volume of transactions 96% 94%

through Alternate Channels
Working Upholding the Equal Pay Continuous Continuous

Conditions Policy
Upholding the Flexible Continuous Continuous

working Policy
Upholding the Diversity and Continuous Continuous

Inclusion Policy
Upholding the Non- Continuous Continuous

Discrimination Policy
Tanzania Employers 4 2
Association Awards

Sustainability
Governance
The Board has the responsibility for the overall Roles and Responsibilities
direction toward sustainability, with the role and
responsibility to approve the Bank’s sustainability The Executive Committee, chaired by the Chief
policy and strategic direction. Executive Officer, is tasked with the following roles
and responsibilities:
Board’s Role
1. Endorsing policy and strategy and proposing
The Board defines ESG/sustainability in the them to the Board of Directors for approval.
context of its fiduciary duty which is to oversee the 2. Overseeing the Bank’s sustainability policy,
long-term success and viability of the organization plans and implementation.
while considering its impact on the bank itself,
stakeholders, and the broader society (who form part 3. Endorsing sustainability performance before
of our clients-the reason for our being in the market), reporting to the Board of Directors, at least on
and environment. This definition guides the NMB an annual basis.
Board’s decision-making processes and strategic
direction, ensuring that the factors related to ESG The Sustainability Steering Committee, chaired by
(including its emerging opportunities and challenges) the CFO (and Treasurer as Co-Chair), is tasked with
are integrated into corporate governance practices the following responsibilities:
and business operations.
1. Reviewing strategic direction before presenting
them to the Executive Committee or other
Role of the Board in the oversight of
relevant committees.
Sustainability
2. Supporting and overseeing implementation of
The role of the Board in the strategic oversight of sustainabilty initiatives and providing guidance
sustainability is multifaceted and crucial for ensuring for improvement.
that the organization integrates sustainability
considerations into its strategy, operations, and 3. Monitoring and assessing performance against
risk management. The Board plays a critical role in targets on a quarterly basis and reporting to the
embedding sustainability into the DNA of the NMB, Executive Committee
driving long-term value creation, and safeguarding 4. Appointing special task forces to manage
the interests of stakeholders and the broader new and emerging sustainability issues as
society. appropriate.
Performance measurement
Progress in our sustainability related initiatives is

reflected directly in the balanced scorecards of
the CEO and relevant Executives. The balanced
scorecard is used to set objectives, drive behaviors,
measure performance and determine the
remuneration of our people.

Material ESG
matters
Identify
We identify ESG matters that may

impact the execution of our strategy and
those that are pertinent to the market
we operate in line with stakeholders’
expectations and our license to operate.
Prioritise
From the list of identified ESG matters,

we prioritise those that most significantly
impact our ability to successfully
execute our strategy and deliver long-
term value to our stakeholders.
Integrate
Those ESG matters that are material

to value creation are integrated into
our balanced scorecard, which is used
to set objectives, drive behaviours,
measure performance and determine
the remuneration of our people.

Materiality to
the Business
Medium Priority High Priority Concentrated Impact
Demand on governance,
Significant
regulations and risk

management
Risk Management
Climate
Change and
Community
Sustainable Finance Engagement
Employee
Environmental Impact
Stakeholder needs
Development
and Wellbeing
Financial Digital Inclusion

and Innovation
Not relevant
Not relevant Significant

Business Impact

Sustainability
Agenda
Sustainability
Pillars
Sustainable Operations Our Approach

(Business practices) Embracing Good Governance
The Bank actively embraces effective corporate
governance through well-defined governance
Our responsible business structures, recognized as vital support for our
practices have a direct, capacity to create and preserve value. Our
governance approach not only propels the
positive impact on two areas achievement of strategic objectives but also
critical to our growth: our harmonizes the interests of all stakeholders,
strength and stability as a fostering sustainable value creation. Moreover,
our Board maintains an unwavering commitment
leading financial institution;
to advancing corporate governance principles and
and our capacity to meet the practices by staying abreast of regulatory changes
needs of our key stakeholders. and best practices.
To achieve this, we take Our corporate governance approach ensures that
into account economic, the bank:
environmental and societal • Adheres to applicable legal, regulatory, and
considerations in our day-to- effective corporate governance practices.
day business operations. • Delivers sustainable impact to the bank’s
stakeholders.
• Cultivates an ethical and risk-awareness culture.
• Promotes transparency, accountability, and

empathy in managing relationships with
stakeholders.
Continual improvement in corporate governance

principles and practices remains a key focus,
ensuring the bank’s resilience in a dynamic
regulatory landscape and adherence to the highest
standards of ethical conduct and responsible
business practices.

Status Report
A strong governance and compliance culture is necessary for long-term and
sustainable growth and value creation.
Target Progress / Achievements Awards & Recognition
Achieve no material Regulatory penalties: NIL Tax Compliance: Overall, Winner:

instances of non-compliance Most Compliant Taxpayer in Tanzania
or regulatory breaches. Cyber Security: No material instances
of data loss Safest Bank in Tanzania
Global Business and Finance
Preventing Financial Crime: No Magazine
material instances of financial crimes
compliance breaches Best Commitment to ESG Principles
Tanzania 2023
No material instances of non- International Banker Banking Awards
compliance concerning fair dealing. 2023
Championing thriving communities The Bank sets aside one percent (1%) of profit after
(community investments) tax to holistically address the diverse challenges
faced by communities. In 2023, the Bank allocated
The Bank’s Corporate Social Investment (CSI) TZS 4.2 billion to implement its CSI initiatives,
Strategy is being implemented to ensure the focusing on thematic areas of education, health,
generation of shared value and inclusive growth financial capability, and disaster recovery. The
with a dedicated focus on promoting and advancing agenda intends to create value and positive socio-
socio-economic development within the Tanzanian economic and business impact.
community. The Bank has committed to making
positive contributions to society and maintaining an Nuru Yangu Scholarship
inspired stance that aligns with the United Nations’
Following completion of the selection process,
Sustainable Development Goals (SDGs) and the
the first cohort of beneficiaries were identified for
2025 Tanzania Vision.
the program, comprising 65 registered students.
The program is now in the process of selecting its
CSI Spend (TZS Billions) second cohort of students, which is expected to
comprise 65 students, bringing the total number
2023 4.2
of sponsored students to 130. Currently, the on-
2022 2.9 boarding process of the scholarship awardees is at
final stages. Once students have been on-boarded,
2021 2.1
payments are made to cover their tuition, direct,
accommodation and allowance costs, of which
approximately TZS 436 million has been spent.

Empowering Dreams through the NMB
Nuru Yangu Scholarship Program
Name: David Benedicto Mbinji

Age: 23
Program: Bachelor of Science in Accounting
and Finance
University: Mzumbe University
Testimonial
In my pursuit of higher education, the NMB Nuru Yangu Scholarship Program has
been a beacon of hope amidst financial uncertainty. As a second-year student at
Mzumbe University, studying Accounting and Finance, I am immensely grateful
for the transformative impact this scholarship has had on my academic journey.
Coming from a working class household, financing my education seemed

overwhelming. However, the Nuru Yangu Scholarship Program provided
financial assistance and a renewed sense of purpose and determination. With
the assurance that my fees are covered, I can now focus wholeheartedly on my
studies, knowing that my future is secure.
I first learned about the scholarship during a time of personal hardship, and the
prospect of joining university seemed uncertain. Thanks to the timely intervention
of a friend who informed me about the NMB advert, I was able to apply and
secure the scholarship just days before the deadline.
The impact of this scholarship extends beyond my academic pursuits; it has

alleviated a significant financial burden on my family.
While expressing my deepest gratitude to the Management of NMB Bank

and NMB Foundation for their visionary initiative, I also urge consideration
for expanding the program’s reach. By extending its reach to more deserving
candidates, we can ensure that every aspiring scholar has the opportunity to
fulfill their potential.

Impact in the community through Employee are built on our ability to embrace diversity – and
Volunteerism we believe that everyone should feel valued for
their contributions. By working together, we will
NMB encourages a giving culture, and its employees deliver the best possible services and solutions
voluntarily contribute funds to support a cause of for our customers.
their own as a means of making a difference in the
lives of the underprivileged in the community. In 3. Inclusion – We foster a company culture
this year, 186 branches and 2,516 staff members where differences are not just accepted but
participated in community work through the CSI valued, where everyone can grow aligned with
matching up initiative and positively impacted the our Bank’s vision and values. We strive for a
lives of over 20,300 people with different needs workplace where people feel connected and
across the country. influential in our shared success.
4. Belonging – the feeling of security and support

when there is a sense of acceptance, inclusion,
Championing Diversity and Inclusion and identity for a member of a certain group or
NMB Bank PLC is an equal opportunity employer place. When people feel a sense of belonging,
aiming at promoting an inclusive culture through they can share ideas, confidently speak up, and
diversity, equality, and inclusion in all aspects within fully contribute.
the workplace from resourcing, rewarding, career
growth, training and development programs. This
does not only end with employees but also revolves Initiatives
around our customers who are the source of us
1. NMB Balance: To further champion Gender
existing in the business environment that we are
Diversity, Inclusion and Equity, we launched
operating with high levels of excellence.
NMB Women Arise, a beacon calling forth
Diversity and Inclusion in the workplace women to seek top management positions. This
initiative did more than inspire it has increased
To ensure that our colleagues feel valued, and the number of women leaders to 32%, with an
integral to our success, we developed the ‘Diversity, overall gender representation of 52% male and
Equity, Inclusion and Belonging Policy.’ The policy 48% female. In 2020, we expanded this initiative
ensures that our unique differences are respected and renamed it “NMB Balance” to include
and celebrated, leading to a place where fairness men and youth more broadly. NMB balance
prevails and everyone has access to opportunities. (Internal Diversity and Inclusion forum) consists
Our Diversity, Equity, Inclusion and Belonging policy of representation from Board, ExCo different
supports a varied workforce and respects diversity departments with a special focus on women
of perspective. It also aims to make our organization men and youth empowerment through several
adaptable while acknowledging the diverse nature of programs including ATE Female Future, Women
our stakeholders. It is based on four key principles. CEOs Roundtable, WIMA, and this quarter
a special team of 60 Women Leaders are
1. Equity – we promote equity by removing scheduled for a program on Women Leadership
barriers, eliminating discrimination and ensuring Development by either Strathmore University/
equal opportunity and access for all groups of GIBS/ESAMI.
people, both within NMB as well as with partner
organizations. 2. SIKIKA Forum: Chaired by the CEO, the NMB
SIKIKA forum is an open employee platform
2. Diversity – We recognize each individual’s where NMB staff express their opinion about
uniqueness. Our success and competitiveness their welfare and working environment. .

3. Other Internal initiatives • Maintaining the zonal mentorship program
by the mentor leaders through frequent staff
• Enforcing trust to employees through trust
engagement to closely guide and empower
and open communication empowerment and
the zonal/branch staff.
engagements.
• Increasing transparency of management
• Embedding a culture of learning from
decisions making, and empowering middle
mistakes that are not intentional by taking
managers to cascade across the Bank.
corrective actions such as mentoring,
coaching, providing constructive feedback etc.
• Promoting fair treatment regardless of job

level, gender, age, workstations and ethnic
backgrounds.
Status Report
Equal opportunity for all.
Target Progress / Achievements Awards & Recognition
Creating a positive, diverse, We have made progress on gender Best Employer of the Year 2023,
and productive workforce parity as of December 2023. Female Runner-Up in the overall winner
staff at NMB accounted for 48% of category
total full-time employees, and 49% of
total staff include fixed-term staff. Best Private Sector Employer 2023,
Runner-up
25% of Top Executive Committee
positions are held by women Quality, Productivity, and Innovation
while Women hold 32% of Senior Award
Management positions and 30%
of other managerial control lines Best Employer - Gender Equality and
positions. Equity Award
In 2022 we became the 1st Financial

Institution in Africa to be awarded
EDGE Gender Certification.

Sustainability
Sustainable
Financing
(Responsible
Banking)
We deliver products and Our Approach
services that promote NMB Bank is on a significant change journey to
sustainable development integrate sustainability in all functions and business
and conduct our banking areas. Promoting businesses and innovations with
sustainability considerations as a core facet of our
business with a greater organization purpose and focus is a priority in our
sense of responsibility to the investment and lending policies and guidelines. The
environment that we operate Bank’s Sustainable Financing Framework, which
was approved in 2023, represents a further step in
in, and the communities that
our effort to incorporate environmental and social
surround us. considerations in our operations.
Currently, through our lending strategy, we ensure

Why it matters that our clients adequately comply with the required
statutory environmental and social regulations as
Sustainable finance plays a key role periodically stated through the National Environment
in promoting the transition to a carbon Management Council (NEMC), the specific sectoral
neutral and sustainable economy. As regulatory agencies and the Office of the Vice
a duty to society and shareholders, President’s Union and Environment.
we support our customers’ transition
To further govern our environmental stewardship
to more sustainable models of doing
and social impact commitments, we have put in
business by supporting projects that
place a comprehensive and specific set of guidelines
prioritize resource efficiency, healthy
that are referred to as part of our sustainability risk
ecosystems and promote the circular
management process. The Policies and Guidelines,
economy. Through the integration of
inter alia, guides us when making end-to-end
environmental, social, and governance
environment and social impact risk assessments as
(ESG) factors into our credit decision,
part of the Bank’s lending business, from the point
we believe we are able to play a more
of credit origination to business appraisal processes,
purposeful role in Tanzania’s transition
approvals and monitoring stages.
to a low carbon future and contribute
to a more resilient economic and social
development.

Sustainability
Agenda
NMB’s Sustainable Financing Framework: Under this framework, NMB may issue 3 types of
instruments:
This framework which is now in operation aims
to provide a foundation under which the Bank • Green bonds/loans etc. where an amount
can execute and, where applicable, list green, equal to the net proceeds will be exclusively
social and/or sustainable liabilities (sustainable used to finance and/or refinance eligible loans
instruments) including, but not limited to, bonds, falling within the Eligible Green criteria,
loans, and deposits. NMB’s sustainable instruments
• Social bonds/loans etc. where an amount
offer investors an opportunity to invest in assets that
equal to the net proceeds will be exclusively
create positive environmental and social impact in
used to finance and/or refinance eligible loans
Tanzania.
falling within the Eligible Social criteria,
The framework is aligned with international best
• Sustainability bonds/loans etc. where an
practice and guidance issued by the International
amount equal to the net proceeds will be
Capital Markets Association (ICMA) and Loan
exclusively used to finance and/or refinance
Markets Association (LMA), namely:
eligible loans falling within both Eligible Green
• Green Bond Principles (GBP) 2021 and Social criteria.
• Social Bond Principles (SBP) 2023
• Sustainability Bond Guidelines (SBG) 2021
• Green Loan Principles (GLP) 2023
• Social Loan Principles (SLP) 2023
Status Report
Initiatives/ Programme Additionality & Impact
Signed financing contracts/ The aim is to enhance access to finance for SMEs, Midcaps, and Co-operatives
agreements with EIB worth across various eligible sectors, focusing on the blue economy and businesses
EUR 100M for gender and blue managed or owned by women, thus promoting gender equality and women’s
facilities in February 2023 economic empowerment.
• On-lending activities to contribute to improving access to credit to mostly SMEs,

especially in the two thematic sectors that suffer from constrained access to
longer-term financing.
• Therefore, through issued loans to eligible private sector businesses, NMB

will address the market challenges of asymmetric information that SMEs are
confronted with when applying for finance, as well as environmental and climate
externalities associated with the blue economy, for instance, pollution reduction
and protection of maritime life.
• Furthermore, the proceeds address gender gaps in finance SMEs and support
women’s inclusion and position in supply chains, including the blue economy.

Status Report Continued
Initiatives/ Programme Additionality & Impact
Signed a senior loan of up to The loan helped the Bank meet the COVID-19-related working capital and trade-
US$100 million with a tenor of related needs of its clients, all of which are small and medium enterprises (SMEs).
2-year renewable for one more
year with International Finance • The loan provides additional liquidity support amidst prevailing global economic
Corporation (IFC), under headwinds to meet the post-COVID-19 related working capital and trade-related
needs of NMB clients, many of which are SMEs.
the COVID-19 Emergency
Response WCS Envelope
• Working capital and trade finance loans to SMEs expedited post-crisis recovery.
(WCS Envelope)
Issued and Listed Jamii The landmark transaction marks NMB’s first Sustainability Bond under its current TZS
Bond in Q3 2023, being the 1 trillion Medium-Term Note, following the global award winning, TZS denominated
1st tranche under the newly debut Social Bond (Gender issuance) issued in 2021 under the previous Medium-
approved MTN Programme. Term Note. The issuance of this sustainable bond further reinforces the position of
NMB Bank as the market leader and a true pioneer in sustainability. The net proceeds
This is the first Sustainability of the Jamii bond will be used to finance activities that align to the Bank’s updated
Bond in the East African Sustainability Financing Framework
Region with a total subscription
amount of TZS 400B. The • The TZS 400 billion raised from the Jamii bond, which matures in 2025 and was
bond had a TZS and USD eight times oversubscribed, will be used to support projects that create positive
social, economic, and environmental benefits as aligned to selected SDG targets.
series, making it the first
These could include green projects, Renewable energy, Gender, Education,
domestic bond in Tanzania to
affordable housing.
be issued and listed in foreign
currency. • The issuance of Jamii Bond is a testament of NMB’s longstanding commitment
to sustainable development and its ambition to play a leading role in sustainable
finance.

Climate
Risk
We recognize climate change as Our Approach
one of the most significant risks We believe that Banks have a unique role to play
facing our planet. Climate risk is in tackling the pressing agenda of climatic change
central to our sustainability agenda and related risks. At NMB we believe that we can
play a purposeful role in combating climate change
at NMB Bank, as we look to limit through a combination of several initiatives all
the impacts that result from the aiming at reducing bank’s own emissions, emissions
transitional or physical effects of through bans finance and capital flows, coupled
with advocacy initiatives geared towards advancing
climate change. We continue to
climate friendly practices across the value chain.
work on the measures required to
address climate change, to mitigate Reducing impact of our operations
impact of our operations on climate All functions of the bank have been engaged in
and to support a transition towards reducing carbon emissions from our operations.
Some of the initiatives include:
lower-carbon operations and
products. • In the year 2022, the Bank fully implemented
LED lighting at the head office and NMB
Academy facility. In 2023, NMB Bank
successfully reduced electricity consumption by
14%, thanks to the collective efforts in adopting
LED lighting at the branch level. This transition
has now been extended to 175 branches, an
increase from the previous 150 branches in
2022.
• As of December 2023, one bank branch

conducted a pilot project on the utilization of
solar energy.
• In the year 2023, a total of 8 vehicles underwent

conversion to CNG, which is a significant
increase compared to the 2 vehicles converted
in 2022. This continuous remarkable progress
in the CNG conversion of our fleet leads us
to anticipate a substantial 30% reduction in
associated operating expenses.
• Since 2021, the HR department has undertaken

significant initiatives to automate processes,
resulting in an impressive 80% decrease in
paper usage.

Sector deep dive for Six priority sectors
Oil & Gas
NMB Bank proactively identifies sectors that may 6.6%
pose risks to its business and its community. In
alignment with this commitment, NMB Bank has Electricity
expanded its analysis and disclosure of climate- 3.1%
related risks, particularly focusing on sectors with
high carbon footprints. Utilising a specialised
unit within the Credit Directorate, the bank has Transportation &
pinpointed specific sectors within its loan portfolio 25% Communication
2.3%
that exhibit heightened exposure to climate-related
risks for action. The identified sectors represent 25%
of the total loan portfolio. Building &
Construction
6.6%
The maximum exposures in the table below
encompass loans and advances to customers at
amortised cost on both On-Balance and Off-Balance Manufacturing
sheets. It’s important to note that the full exposure 9.3%
does not encompass private loans. As reporting

standards evolve towards harmonising around Agriculture
green, sustainable, and transition taxonomies, we 8.6%
will adapt our reporting methodologies accordingly.
Initiatives Loans and advances to CO2 related

We believe that NMB can make the greatest and Climate-Sensitive Sectors
difference by supporting our clients in climate
On-balance Off-balance
sensitive sectors to transition to a low-carbon TZS billion
sheet sheet
economy, rather than by simply phasing out support Sector 2023 2022 2023 2022
for them. The Bank is therefore committed to its role Agriculture 513 732 18 115
in enabling climate mitigation and adaptation efforts
of the country through both its lending activities, and Building and 147 150 281 496
by reducing the carbon footprint of its operations. Construction
Energy: 11 142 152 161
Key focus areas include: Electricity
• Sustainable agriculture and food security Energy: 34 365 624 282

Oil & Gas
• Sustainable infrastructure Manufacturing 249 387 166 533
• Renewable energy
Transportation & 124 168 100 63
• Clean transportation Communication
• Sustainable Fisheries Total 1,079 1,944 1,341 1,650
• Climate Adaptation
• Waste and water management
Financial
Inclusion
Efforts to promote and facilitate Our Approach
financial literacy, inclusiveness, In the last 12 months, the Bank has introduced
and accessibility to financial innovative products and services and continued
services for the underserved to meet its customer and clients& savings,
transactional and financing needs in urban and rural
or unserved individuals areas.
and businesses, alleviating
financial hardships and thus
expanding access to formal Driving Inclusive Growth through Financing
banking services for all. The 2023 FinScope survey shows that formal
banking services are used by just 22% of adults in
Tanzania, with key groups like women, youth, SMEs,
and small-scale farmers being largely underserved
and excluded. As a leading financial institution in
the country, NMB bank is committed to supporting
Tanzania’s journey toward financial inclusion. We
have launched different proposition to fit the needs
of Women, Youth, and small-scale farmers.
Initiatives
• Women Proposition: We launched a unique
Women Proposition, dubbed NMB Jasiri Women
Proposition in 2020. The Jasiri Program/
Initiative with the main objective of Drive
Economic Empowerment of women through
creation of a unique market proposition for
women.
• Award winning Social Bond: In 2022 we

successfully Issued the first gender bond in the
whole of Sub-Saharan Africa (SSA), debuted
“Jasiri Bond” the bond set new benchmark
for issuance of gender-based instruments.
including an oversubscription of 197%. The
bond aimed at financing Women owned Agri,
SME’s and MSME businesses which addressed
SGD goals 1, 5 and 10 i.e. No Poverty, Gender
equality and Reduced Inequalities. This initiative
addresses SGD goals 1, 5 and 10

• i.e. No Poverty, Gender equality and Reduced • Youth Propositions: We also introduced
Inequalities. ‘Mshiko Fasta’, an innovative mobile loan
service without the need for collateral. It offers
• Expanding access to finance to SMEs, and
up to TZS 500,000 to support small business
Small-scale farmers:
cash flows for women and youth entrepreneurs.
• We have established a TZS 200 billion This has been a success, with over TZS 46.4
Agriculture Value Chain fund that facilitates billion disbursed.
loans at low-interest rates (9%) and supports
• Expansion of our network:
at least 38 agricultural value chains. With
an annual growth rate of around 40%, our • Revamped our Agency banking services
agricultural loan portfolio is one of the fastest- to bring banking services closer to our
growing segments of our lending activities. customers. Through the new, in 2023 we were
Our innovative “360° Food Supply Ecosystem able to expand our agency footprint to 28,295
Solutions” approach connects all participants banking agents across Tanzania, from 19,870
in the agricultural sector from farm to fork, in 2022, hence expanding access to banking
fostering synergies within the value chain. services in rural and remote areas.
• A total of TZS 20 Bn ($7.9 Mil )has been set • We also opened 4 new branches and
aside for supporting Government’s Building relocated 2 branches.
Better Tomorrow agriculture program for youth
and women.
• All these initiatives address SDG goals 1,2,5

and 10 i.e. No Poverty, Zero Hunger, Gender
equality and reduced inequalities.

Status Report
Outreach 2023 2022
Number of branches 231 228

Number of branches in rural areas 155 153
Number of agents 28,295 19,854
Number of agents in rural areas 12,733 8,736
Number of ATM's 715 781
Number of ATMs in rural areas 350 346
Number of mobile banking subscriptions (active users) 4,952,822 4,677,020
Number of internet banking subscriptions (active users) 41,652 25,020
Total number of customers 6,945,767 5,840,589

1. 'Of which are mass market consumer retail 6,374,124 5,520,578
2. 'Of which rural retail customers 3,604,249 2,942,468
3. ’Of which are rural female retail customers 1,204,209 888,625
4. 'Of which Private Retail Banking 32,827
5. 'Of which Corporates 72,949 7,378
6. 'Of which Micro, Small and Medium Enterprises (MSMEs) 367,664 226,211
7. 'Of which any Other category of customer not listed above 98,203 86,422
8. 'Of which are business customers (SMEs, corporates, special Agri-purpose 69,252 120,868
account holders etc.) active in the Food and Agri value chain
8.1 'Of which are Corporates 8,335 5,528
8.2 'Of which are MSMEs 60,917 115,340
8.3 'Of which are farmers 805,113 117,092
9. 'Of which are farmer cooperatives 3,483 3,166
10. 'Of which are Agri-processors 982 610
Definitions
Corporates (as applied to the data in this questionnaire):

Turnover TZS 20 billion and above. Borrowing limit TZS 5 billion and above
MSMEs (as applied to the data in this questionnaire):

SME: turnover between TZS 150 million - TZS 15 bln. Borrowing limits TZS 50 million < x < TZS 5 billion
MSE: turnover up to TZS 150 million. Borrowing limits TZS 500,000 < x < TZS 50 million
Women-owned business:
Women owned business is considered by:
- Ownership - more than 51%
- Management - 20-30% women in management position
- Staff composition - employs 30% or more women
- At times - product/service impact

Status Report Continued
Indicator Our Initiative

A dedicated team/unit focused on The team seats under Retail Products, Pricing and Insights.
Women-owned MSME banking
Sales and specific relationships are handled by Relationship officers/
managers in both business banking and agri business units
Dedicated products/services The following products have preferential features such as rate and
customized for the women owned requirements for women:
MSME segment • Jasiri Loans
• Special rate Fanikiwa Loans
• Family banking (Mtoto, Chipukizi, Mwanachuo account)
Dedicated team/unit focused on The team seats under Retail Products, Pricing and Insights.
women retail banking
Products specifically designed for the The following products are specifically
low-income retail segment
• NMB Pesa (Mobile Based account)
• Micro savings wallets: Spend 2 save
• Group account - Pamoja account
• Loans:
• Mshiko Fasta (Micro digital loan)
• Fanikiwa Loan
• Machinga loans
Dedicated products/services The following products have preferential features such as rate and
customized for women in the retail requirements for women:
segment
• Jasiri Loans
• Special rate Fanikiwa Loans
products specifically for low-income The following products are specifically for low-income businesses:
business traders / microenterprises
• Chap chap Fanikiwa account
• Fanikiwa account
• Fanikiwa Loans
• Machinga Loans
Microfinance loans We offer micro loans such as:

• Digital Loans (Mshiko Fasta) from TZS 1,000 to TZS 500,000

Corporate
Governance

Dear
Shareholders
Throughout 2023, we remained true to our We acknowledge both the positive and negative
principles and maintained a firm conviction that consequences of our operations’ impact on the
robust corporate governance is essential for our economy, community, and environment. The Board
bank’s lasting prosperity. Our resolute dedication manages and mitigates adverse impacts while
to making long-term decisions to generate championing environmental and socio-economic
lasting value for all stakeholders remains the sustainability. Our Sustainability Programme,
cornerstone of our approach. initiated in 2022, aims to integrate sustainability
considerations into our decision-making processes
We maintained a stringent governance
comprehensively. Such initiatives take a forefront in
framework throughout the year, aligning with
our decision-making as we integrate sustainability
the Bank of Tanzania’s Principles of Good
into every decision, from the boardroom to the front
Governance and Corporate Governance
lines.
Guidelines. Adhering to the Code of Corporate
Governance Practices for Listed Companies The Board reaffirms its commitment to upholding
and the Companies Act Cap 212 (as amended) exemplary governance practices, recognizing
underscores our dedication to transparency and their pivotal role in our long-term success. We will
accountability. continue collaborating closely with management to
ensure that these high standards permeate every
In 2023, we continued to invest in the diversity
aspect of our business and drive the successful
of skills and competencies within the Board,
execution of our strategic priorities.
balancing continuity with the infusion of
experience and expertise essential for steering We’re capitalizing on good governance,
our long-term success. The re-appointment of digitalization, and sustainability, and with your
the Chairman, Dr. Edwin Mhede, and one Non- continued support, our achievements are limitless.
Executive Director, Juma Kisaame, enriches
In closing, I extend my sincere gratitude to our
our Board with diverse skills in finance, risk
shareholders for your continued trust and support.
management, and governance.
Together, we will navigate the evolving landscape
Aligned with our strategic vision, the Board with resilience and determination, positioning NMB
sustained its focus on digitalization, making for sustained growth and prosperity.
prudent investments in technology. We observed
significant progress in digital adoption, with
alternative channels accounting for 96% of total Dr. Edwin Mhede
transactions by volume as of December 2023. Chairman
This underscores our commitment to enhancing
customer experience through innovation.

Corporate
Governance
Our Board
of Directors
Dr. Edwin P. Mhede - 45 Juma Kisaame - 60 George Mandepo - 48

Chairman Non-Executive Non-Executive
Economist, CDIoDT Banker, CDIoDT Lawyer, CDIoDT
Appointed on 5th June 2020 Appointed on 5th June 2020 Appointed on 15th June 2019
Re-appointed on 2nd June 2023 Re-appointed on 2nd June 2023 Re-appointed on 3rd June 2022
Hendrik Reisinger - 59 Benson Mahenya - 55 Aziz Dachi - 48

Non-Executive Independent - Non-Executive Non-Executive
Economist/ Banker CPA (T), CDIoDT ICT, Auditor, CDIoDT
Appointed on 15th June 2019. Appointed on 15th June 2021 Appointed on 3rd June 2022
Re-appointed on 3rd June 2022
2023 Focus Areas
• Reviewing progress on Medium-

Term Plan (2021-2025) and
relevant strategic initiatives
• Reviewing and approving

Governance policies
Clement Mwinuka - 60 Ramadhani Mwikalo - 69
Independent - Non-Executive Independent - Non-Executive • Overseeing performance and risk
CPA (T), CDIoDT IT Expert, CDIoDT
• Overseeing the execution of the
Appointed on 3rd June 2022 Appointed on 3rd June 2022 Banks Transformation journey

The Board guides the strategic direction of the Bank by approving and monitoring effective strategy
execution by Management.Our Board composition embodies a wide range of diversity, including age,
race, ethnicity, country of origin, culture, educational background, skills, experience, and knowledge. This
diversity fosters meaningful discussions, valuable input, constructive challenges, and thoughtful outcomes.
We are fully committed to fulfilling our governance, social, and regulatory responsibilities. Additionally, we
continuously monitor and report on various diversity measures, such as skills, educational qualifications, and
age.
Age Independence
60+ years
(37.5%) Non Executive
- Independent
Director
40-49
years
54
Average Age
38%
Independence
(37.5%)
Non Executive
50-59 years Director
(25%)
40-49 years 50-59 years 60+ years Non Executive - Independent Non Executive
Director Director
Tenure Nationality
Ugandan (1)
Above 5 0-2 years
years (2) (3)
3
Dutch (1)
Average
Tenure
75% Tanzanian
3-4 years (3) Tanzanian (6)
0-2 years 3-4 years 5 years Tanzania Ugandan Dutch
Number of Board
Committee Meetings 41
2022: 45
Board Committee
Atendance 99.5%
2022: 89.3%

The Bank’s
Governance
Framework
The Board is satisfied that the The Board is satisfied that it The Board believes
delegation of authority framework has fulfilled its responsibilities in arrangements for accessing
contributes to role clarity and the accordance with its charter for professional services are
effective exercise of authority and the period. effective.
responsibilities.
< Delegation
Board
Accountability >
Bank
Chief Independent
Executive Oversight, assurance Assurance
Officer Delegation
and reporting
Supported by our Bank External audit, internal

Executive Committees and audit, and other
various sub-committees. professional advice.
Board Committees
Board Executive Committee (BEC) Board Credit Committee (BCC)
Board Audit, Risk and Compliance Board Human Resources and

Committee (BARCC) Remuneration Committee (BHRRC)
All Board committees are satisfied that they have fulfilled their
responsibilities in accordance with their respective charters for the
reporting period.
Executive Committee
Management Assets & Risk & Management

Executive Liabilities Compliance Credit
Committee Committee Committee Committee

Board Committee Focus Areas
Committee 2023 focus area and material decision 2024 focus area
Board Executive • Reviewed and approved policies. • Integrating the ESG strategy within the
Committee (BEC) Bank; developing the various climate-related
• The Board continued to oversee the bank’s standards; and achieving substantial
governance, smooth operation, and oversight. and tangible results towards the Bank’s
sustainability commitments.
• Received updates on the bank’s performance,
including business-level performance updates. • Board effectiveness actions evaluations.
• Reviewed and approved rebased Medium-Term • Board composition (to achieve optimal
Plan. composition in terms of the number of
members, respective skillsets, and gender)
• Regulatory relations (top-of-mind matters, fines
Juma Kisaame and succession planning.
and penalties, and regulatory commitments and
Non-Executive relationships) • Executive management succession planning
• Evaluation regarding the effectiveness of the • Board governance objectives (approve

Board and its committees (outcomes were objectives and monitor the work performed)
presented, with actions introduced, where
relevant)
Board Human • Appointments and progress of on-going key • Attracting and retaining top talent, scarce
Resource and recruitments (senior and middle management and critical skills, and mitigating the impact
vacancies) of increased sectoral competition for local
Remuneration talent.
Committee (BHRRC) • Extending participation in our long-term
incentive arrangements to increase coverage • Fair and responsible remuneration in the
for scarce and critical skills and align with peers’ context of fair pay practices and evolving
market practices. market dynamics.
• Taking additional steps in fair and responsible • Ongoing evaluation of the impact of our
pay, predominantly regarding fixed remuneration evolving remuneration frameworks and their
increases and short-term incentive allocation outcomes ensure that they remain locally
for frontliners, as well as addressing pay relevant and competitive and effectively
differentials. balance stakeholder interests.
George Mandepo
Non-Executive • The Board approved exponential training budget
growth to further accelerate the upskilling
agenda for the bank.
• Overseeing cost-benefit analysis and related

implications of changes of the emolument’s
adjustments.
• The Committee received regular updates on the

progress of the Culture Transformation project
and key labor cases.

Board Committee Focus Areas Continued
Committee 2023 focus area and material decision 2024 focus area
Board Credit • Discussed and approved Risk Appetite and • The Bank’s loans and advances growth
Committee (BCC) Sectoral Limits. in the context of concentration risks and
exposures, in particular to the higher risk
• Reviewed, and approved credit portfolio sectors of the economies.
strategies.
• Close monitoring of the sectors affecting
• The Committee continues to monitor the our ESG ambitions and targets regarding
credit risk exposure, sector, and single name gross loans, losses, returns, and emissions
concentration of the corporate loan book. management.
• Material limit increases in 2023 for several

significant single-name exposures were
reviewed and approved,
Hendrik Reisinger • The overall portfolio health of the lending book,
Non-Executive the related loan loss ratios, vintages, and
related matters were considered.
• Deep dives were conducted on higher risk

sectors and portfolios (including the agriculture,
and transportation sectors), considering the
global macroeconomic environment, resultant
heightened risks, and the impact of climate
risks.
Board Audit, Risk • Receive internal and external Audit reports and • Internal capital adequacy assessment
and Compliance oversight to management on improving control process (ICAAP)
enviroment.
Committee (BARCC) • Internal liquidity adequacy assessment
• Liquidity simulation (with the participation of process (ILAAP)
ExCo) and assess capital adequacy.
• The macroeconomic environment, including
• Evaluated risk appetite and principal risk economic recovery, headwinds and volatility,
profiles. and customer stress to assess possible
impacts on the Bank’s risk appetite.
• Deep dives into market and liquidity risks
including FX liquidity and overall impact to • Processes for screening sensitive and ESG
clients and the business. financing transactions.
• Update on Policy changes including Compliance • The macroeconomic environment, including

Risk Management Policy, Financial Consumer economic recovery, headwinds, volatility,
Protection Policy, and Strategic Risk risks, and opportunities.
Management Policy.
Clement Mwinuka • Regulatory developments (a) as part of the
Independent - • Received, reviewed, and approved financial Basel III finalisation, appropriate courses of
results. action to manage cost and capital impact
Non-Executive and ensure regulatory compliance and (b)
• Received regular risk reports focused on the appropriate risk processes to respond to the
bank’s risk and control operating environment. direct and indirect impacts of climate change.
• Approved the risk appetite validation of the 2024

Budget.
• Considered external legislative and governance

developments and received regulatory updates.
Note: This is a summarization of key committee activities; detailed highlights can be found on Those Charged with
Governance Report.

Categories of Directors and Balance of Skills
Finance (Analysis
Credit & reporting)
Risk Strategic
Management Planning 8 6
8 8
Sustainability
(Climate Change Human
and Environmental) Resources/
Accounting Compensation
4
3 3
Corporate Information Systems Econo

Management Governance Technology Audit mics Legal
8 8 3 3 1 1

Evaluation and
Performance of
the Board
The Board ensures that the

evaluation of its performance, and
that of its committees, its chair and
its members supports continued
improvement in its performance and
effectiveness
Assessing the Board’s effectiveness
The Board assesses its performance and

that of its committees in several ways:
The Board conducts a formal and rigorous annual

evaluation of its collective performance, the
1 Mandate individual Directors’ contributions, and the Board

self-reviews Committees’ performance against their respective
mandates to constructively identify achievements
and improvement areas.
The Board, its Committees and individual Board

members in accordance with the section 21 (i)
2 Effectiveness
evaluation
of the Bank of Tanzania Corporate Governance
Regulations 2021, undergo a comprehensive
evaluation periodically to assess the effectiveness
of the Board, its committees and its members.
3
Evaluation of individual director performance is
Peer to Peer
carried out by an Independent External evaluator
evaluation
in one-one-one discussions with each Board
member.

Key areas in the 2023
review included:
• Board Composition and Board
Structure Evaluation
Score
• Board Operations and Meetings
• Governance and ethics
• Cooperation with management
• Strategic Leadership
92%
• Team player
• Strategic alignment and the 2023
The Board Committees are
evaluated on effectiveness in Board mandate
discharging their responsibilities, • Diligence and commitment
diligence, and responsiveness
to the Board. Additionally, the
Key Findings:
Committees self-evaluate on
annual basis their abilities to The Board performed very well
carry out the responsibilities set in the overall evaluation based
out in their respective Terms of on responses received from the
Reference. questionnaires for evaluating Board
effectiveness.
In 2023, the Board engaged
KPMG East Africa, an Overall, the Board has shown
independent external
evaluator, to conduct the Board
resilience, through facing and
confronting complex issues. The
2022 88%
performance and evaluation Board sub-committees are an
with the Company secretary effective element of the overall
overseeing the process and the oversight and governance framework.
BHRRC providing guidance.
The Board has been proactive in
The evaluation process took the addressing the areas of improvement
form of a series of questions identified in the previous assessment.
that allowed the Board to review
There is a solid relationship of
its effectiveness in 2023, with
mutual respect and trust between
the opportunity to provide free
Board members that enable
text comments or observations
robust interactions. The executive
throughout the questionnaire.
management team is appropriately
82%
The evaluation also focused
empowered to execute the strategy,
on the Board’s effectiveness in 2021
with the Board playing an oversight
overseeing new and emerging
role.
themes and the bank’s strategic
priorities. The chairman is a team player,
and has ability to unite the Board
members to a common purpose
for the achievement of the bank’s
strategy.

Corporate
Governance
Driving the strategy of the bank

Our Executive Team
Ruth Zaipuna - 50 Juma Kimori - 45 Filbert Mponzi - 48

Chief Executive Officer Chief Financial Officer Chief Retail Banking
ACPA (T), MBA, CDIoDT ACPA (T), MBA, CDIoDT ACPA (T), MBA, CDIoDT
Appointed on 18th August 2020 Appointed on 12th March 2021 Appointed on 01st June 2019
Alfred Shao - 48 Aziz Chacha - 42 Nenyuata Mejooli - 50

Chief Wholesale Banking Treasurer Chief Shared Services
ACCA, MBA, CDIoDT MBA, ACI MBA, CDIoDT
Appointed on 17th Febrary 2020 Appointed on 27th August 2011 Appointed on 01st June 2019
Nishad Jinah* 46 Emmanuel Akonaay - 42 Kwame Makundi - 42

Acting Chief Credit Officer Chief HR Officer Chief Technology & Digital
BSc Banking and Finance MBA, Certified Reward and HR Transformation
Practitioner, CDIoDT MBA
Appointed on 13th December 2023 Appointed on 06th August 2020 Appointed on 01st November 2021
*Nishad Jinah was appointed Acting Chief Credit, succeeding Daniel Mbotto, effective from December 2023.

8%
Tenure
on ExCo
Doreen Joseph - 41 Ezekiel Herman - 43

Chief Risk Officer Chief Compliance Officer 59% 33%
MBA CPA (T)
Appointed on 12th September 2022 Appointed on 03th October 2022 0-3 years 4-6 years +6 years
17%
Tenure
at NMB
Benedicto Baragomwa - 40 Mwantumu Salum - 54

Chief Internal Auditor Company Secretary 50% 33%
ACPA, MSc, LLB (Hons), LLM
CISA, CDIoDT Certified Compliance Officer
0-3 years 6-10 years +10 years
Appointed on 15th November 2021 Appointed on 11th October 2023
25%
2023 focus areas
Diversity
• Execution of key strategic initiatives in line with our MTP
• Making sound investment choices in critical strategic areas 75%
• Enhancing our risk management and governance framework
• Advancing the bank’s sustainability agenda
Male Female
• Investing and empowering our people to create a fit for
purpose and fit for growth organization.
• Expand and deepen our customer offerings in line with our
‘customer first commitment.

Long-Term Viability
and Going Concern
Statement
In an ever-evolving financial landscape, NMB Bank
remains steadfast in its mission to deliver value
Dr. Edwin P. Mhede to stakeholders while navigating challenges and
Chairman
seizing opportunities. Our viability statement for 12
months to 31 December 2024 reflects our proactive
approach to risk management, strategic planning,
and operational resilience.
• Our Medium-Term Plan for 2021–2025 serves

as a strategic roadmap, outlining initiatives
to enhance profitability, manage risks, and
ensure sustainable growth. By aligning our
operations with long-term objectives, we mitigate
uncertainties and position ourselves for success
in the years ahead.
“NMB Bank presents its • NMB Bank conducts rigorous stress testing
Integrated Annual Report exercises and internal projections to assess
our resilience to adverse scenarios. These
for the year ended 2023, assessments, covering profitability, capital
highlighting our commitment adequacy, and liquidity, form the foundation of
to transparency, resilience, and our viability assessment and strategic decision-
making process.
long-term sustainability. In line
with regulatory requirements • We continuously monitor and manage
principal risks, including geopolitical
and best practices in corporate
tensions, macroeconomic uncertainties,
governance, we provide a digitalization, technological advancements, and
comprehensive assessment of environmental, social, and governance (ESG)
our long-term viability and ability risks. Implementing robust mitigation strategies
safeguards our long-term viability and ensures
to operate as a going concern.” prudent risk management. (see page 190, 213-
222)
• A comprehensive analysis of our financial

position considers key metrics such as
profitability, regulatory capital requirements,
liquidity funding, and minimum own funds and
eligible liabilities. Maintaining adequate levels of
capital and liquidity is paramount to supporting
our operations and withstanding potential
shocks. (see page 207, 215)
• We assess the potential impact of external
factors, such as geopolitical events, economic
uncertainties, and regulatory developments,
on our operations and financial stability. Our
proactive approach and contingency plans
enable us to mitigate adverse effects and
maintain business continuity in challenging
environments.
NMB Bank remains committed to regulatory

compliance and upholding the highest governance
standards. Our robust regulatory compliance
framework ensures that we adapt to evolving
regulatory requirements and maintain the trust and
confidence of our stakeholders.
Operational resilience is a key priority for NMB

Bank. We continuously enhance our operational
infrastructure and processes to withstand disruptions
and maintain the continuity of critical services. By
focusing on operational resilience, we mitigate
operational risks and ensure the stability of our
operations.
In conclusion, NMB Bank is well-positioned to

navigate the challenges and opportunities that lie
ahead. Based on our comprehensive assessment
of present and potential conditions, we reasonably
expect to continue operations and meet liabilities
over the next 12 months. We remain committed to
delivering sustainable value to our stakeholders and
upholding our status as a responsible corporate
citizen.
NMB
NMBIntegrated
IntegratedAnnual
AnnualReport 2023 || 158
Report2023
Risk
Report

Risk Update
Risk
Update Loan Book Quality
Our loan book remained resilient, and our Non-
Doreen Joseph performing loan ratio, asset quality, value at risk
Chief Risk Officer and loan provision coverage ratios were at healthy
levels. We safeguarded our asset quality with
robust risk controls and measures. We adopted a
risk-based approach to focus on high-risk sectors,
tightened credit lending criteria, intensified portfolio
reviews and stress tests on sectors and targeted
portfolios.
Total credit impairment charges were TZS 84.4

billion in 2023 compared to TZS 81.2 billion (2022).
While net recoveries of TZS 28 billion were also
“2023 was a challenging year
above TZS 23 billion a year ago. The year-on-year
for the credit and financial net increase in NPLs mainly comprised corporate
markets globally; increasing accounts, which drove the increase in the non-
geopolitical tension and weak performing loans ratio to 3.2% from 3.1% (2022).
and uneven global economic Nonetheless, the Bank continued to retain a healthy
growth had resulted in a coverage ratio, with non-performing loan allowances
tightening monetary stance covering 41.8% of the non-performing loans.
amongst developed economies,

which in turn affected interest
Market Risk
rates in global financial markets.
Against the backdrop of all Global market risk increased in 2023, mainly due to
these challenging environments, increasing interest rate risk in the banking book and
we have managed to maintain inflation risk during the year. The overall market risk
remains moderate and well within the Bank’s risk
a high-quality and robust
appetite.
loan portfolio; we remain well
capitalized with sufficient Central banks have continued with the ambition
liquidity position.” of pushing inflation down with significantly higher
rates. As a result, the trend of interest rate volatility
continued to accelerate during 2023. The year has
also been characterised by significantly higher
market volatility compared to 2022. In 2023, NMB
Bank’s risk exposure amount for market risk was
TZS 46.1 billion (2022: TZS 14.1 billion). This
change was, to a large part, driven by increased
exposure to interest rate risk in the trading book.

Resilience
Operational risk
As our customers expect seamless and continuous
performance 2023
access to NMB Bank’s services in a secure,
convenient, and uninterrupted manner, regardless
of the channel they choose, it is our responsibility NPL Ratio
to ensure efficient, secure, stable, and resilient
operating systems. NMB continues to closely
monitor risks and recurring incidents that may 3.2%
potentially result in service disruptions affecting Up 10 bps from 3.1% in 2022
our customers and operations. The overall level of
operational risk remained acceptable throughout
the year and stayed within the risk appetite limits.
NPL Impairment Cover
The number of material incidents remained stable
compared to 2022, and our risk exposure related to
operational risk, calculated using the Basic Indicator
Approach, was TZS 708.1 billion (2022: TZS 574
41.8%
12.1pp down from 53.9% in 2022
billion).
In 2023, we launched the “Shaping a Risk-Resilient

Organizational Culture” program, resulting in a Cost of Credit risk
decrease in the number of risk events compared to
2022. Most of the recorded operational risk events
occurred with minimal financial loss to the bank.
1.06%
Down From 1.2% in 2022
Liquidity and Capital Risk

Liquid Asset Ratio
The Bank continued to maintain a robust liquidity
position with all liquidity metrics within regulatory
limits; at the year-end of 2023, NMB’s Liquidity ratio
was 32.95%.
33%
UP 10.68 Pps from 22.27% in 2022
The loan-to-deposit ratio was 95% at the end
of 2023 compared to 83% at the end of 2022,
on account of increased customer deposits and Total Capital Adequacy Ratio
proceeds from the issuance of the Jamii bond. The
loan-to-deposit ratio is predicted to remain in this
range, and deposits will continue to be the largest 23.26%
source of funding for the Bank in the years ahead. Above regulatory requirement of 14.5%
The Bank continued to maintain a strong funding

position and was well-capitalised. As of the end of
December 31, 2023, customer loans and Advances
of TZS 7.71 trillion were up 28% compared to TZS
6.01 Trillion in 2022, driven by Corporate loans
and other consumer-related loans and loans to the
SME&MSE. Customer deposits rose by 11% to 8.47
trillion and represented 83% of the Bank’s funding identified, assessed, quantified, managed and
composition. The growth in deposits was on account monitored.
of an 11% rise in current account and savings
Each business line engages in the risk management
(“CASA”) deposits, and the CASA to total Customer
process by identifying the key risks applicable to its
deposits ratio improved to 85% from 84% in 2022.
business. The principal risks and uncertainties faced
The Bank’s Tier 1 Capital adequacy ratio and Total by the bank are identified through this bottom-up
Capital adequacy ratio were 23.25% and 23.26%, process. On a day-to-day basis, the Bank’s Risk
respectively. These ratios remained well above the Management Committees are responsible for the
regulatory minimum thresholds of 12.5% and 14.5%. implementation of the Bank’s risk management
and internal control policies and procedures. In
As of December 31, 2023, the FX Net Open Position
line with our risk culture, managers “own” the risks
stood at 0.70%, showcasing a substantial reduction
originating in their respective business processes.
from the previous year’s 3.89%. It is crucial to
For each material risk identified at any level of the
highlight that this level remains well within both
business, the risk is assessed, mitigated (via set
internal and regulatory limits, which is 10%.
of viable controls) and monitored in accordance
with our policies and procedures. In regard to
such risks, managers (risk owners) are required to
Risk Governance report on identified issues and risk responses in a
timely, consistent, and systematic manner. The Risk
Our risk management approach ensures consistent
Management Committees regularly reviews and
and effective risk management within our Board-
challenges the output from the bottom-up process as
approved risk appetite and provides for appropriate
it receives reports regarding the assessment of the
accountability and oversight.
effective implementation of the controls as itemised
We take a holistic, forward-looking view of the by the SOPs (Standard Operating Procedure) and
risks we face, assessing both the prevalent and policies of risk management and internal control. Our
emerging threats in our operating environment. Our reporting process enables key risks to be escalated
well-developed framework supports a consistent to the appropriate level of authority and provides
approach to risk and capital management throughout assurance to the Committees and the Board.
the Bank.
Key developments affecting our principal risks
and associated mitigating actions are reviewed
quarterly (or more often, if necessary, on an ad hoc
Our Risk Framework basis, outside of the regular reporting process) by
The Board’s mandate includes determining the the Audit, Risk and Compliance Committees, as
bank’s risk appetite and risk tolerance as well as appropriate, and the Board. The emerging risks and
monitoring risk exposures to ensure that the nature uncertainties are addressed in the same manner and
and extent of the main risks we face are consistent identified through the above processes.
with our overall goals and strategic objectives. The
Board is accountable for reviewing the effectiveness
of the system and processes of risk management The Enterprise Management Framework
and internal control, with the Audit, Risk and
The Enterprise Risks Management Framework
Compliance Committee assisting in discharging
sets the strategic approach for risk management by
this responsibility. At the Board, Committee and
defining standards, objectives, and responsibilities
Management levels, we develop formal policies and
across NMB Bank’s Operations. It is approved
procedures that define how risks are systematically
by Board and then adopted by the Bank with

modifications as needed. The framework supports Acting within an authority delegated by the
Executive Management in effective risk management Board, the Board Audit, Risk and Compliance
and in maintaining a strong risk culture. Committee (BARCC), whose membership is
comprised exclusively of non-executive directors,
The ERMF outlines:
has the responsibility for oversight and review
1. Segregation of duties: The ERMF defines a of prudential risks including, but not limited to,
Three Lines of Defence model. credit, market, capital, liquidity and operational.
It reviews the bank’s overall risk appetite and
2. Principal risks faced by the Bank: This list makes recommendations thereon to the Board.
guides the organization of the risk management Its responsibilities also include reviewing the
function, and the identification, management and appropriateness and effectiveness of the bank’s risk
reporting of risks. management systems and controls, considering the
implications of material regulatory change proposals.
3. Risk appetite requirements: This defines the
level of risk the Bank is willing to undertake in its The BARCC receives regular reports on risk
business. management, including our portfolio trends, policies
and standards, stress testing, liquidity, and capital
4. Roles and responsibilities for risk management:
adequacy. It is authorized to investigate or seek any
The ERMF outlines the accountabilities of
information relating to an activity within its terms of
the Bank’s CEO and other Members of the
reference.
Executive Management.
5. The ERMF is complemented by frameworks,

The Board
policies and manuals that are primarily aligned
to individual Principal Risk. The Board has ultimate responsibility for the
effective management of risk and approving Bank’s
risk appetite. It is responsible for delineating the
Our Risk Management Strategy involves overall risk management strategy and supervising
Our strategy in risk management entails: the risk management framework of the Bank,
directly or through the Audit, Risk and Compliance
• Risk identification: Conducting an impact Committee.
analysis of risks arising from growth plans,
strategic initiatives, and business model Main duties of the Board of Directors around risk
vulnerabilities. management are:
• Risk appetite: Performing an impact analysis to • Establishing the risk appetite and risk capacity
confirm that growth plans and strategic initiatives framework of the Bank.
are within the Board Approved Risk Appetite. • Approving a risk-management policy consistent
• Stress Testing: Utilizing the outcomes of the with the risk-appetite framework, including the
risk identification process to develop scenarios establishment of risk limits in the various areas
for stress tests, and using the results of stress of activity and main risk areas.
tests to recommend strategic actions. • Providing clear guidance to senior management
with regard to risk management, based on the
Risk Governance recommendations of the executive committee,
headed by the CEO, and ensuring that senior
Ultimate responsibility for setting our risk appetite management takes the necessary actions in
and for the effective management of risk rests with order to identify, measure, monitor, and control
the Board. risks.
• Approving methodologies for risk assessment and control, and for the allocation of capital in respect of
risks.
• Supervising and monitoring the implementation of the established risk- management policy; examining
the Bank’s actual risk profile and examining the processes and actions that the Bank must apply to
comply with all regulatory directives concerning risk management.
Board of Board Executive Committee

Directors
Board Audit, Risk, and Compliance Committee
Board Credit Committee

Board Human Resource and Renumeration Committee
CEO
Management Committees
Executive Management Committee
Management Legal Committee
Assets and Liabilities Committee
Management Tender Committee
Disciplinary Appeals Committee
Product Approval Committee
Customer Experience Management Committee
Corporate Social Responsibility Committee
Project Management Committee
Risk and Compliance Management Committee
Wholesale Credit Committee
Retail Credit Committee
Management Audit, Risk and Compliance Committee
Loan Portfolio Quality Committee
Risk &
Business Support Control Internal
Segments Functions Functions Audit
First Line Second Line Third Line

Risk Committees the identification, monitoring, management and
reporting of credit, market, liquidity, operational,
To facilitate strong risk oversight, the following risk capital and reputational risks.
committees have been established.
• The BARCC also reviews certain key risk
At the Board level, there are three Board-level methodologies, the effectiveness of risk
committees which oversee the application of the management, and NMB Bank’s risk profile,
ERMF and review and monitor risk across NMB including the material issues affecting each
Bank. These are: the NMB Bank Board Audit business portfolio and forward risk trends.
Risk and Compliance Committee; Board Credit The committee also commissions in-depth
Committee and the Board Human Resources and analyses of significant risk topics, which are
Remuneration Committee which oversees among presented by the Chief Risk Officer and Chief
other things, pay practices focusing on aligning pay Compliance Officer or senior risk managers
to sustainable performance in line with policies. in the businesses.
Finally, the NMB Bank Board receives regular
information on the risk profile of the Bank and has • It also receives regular reports on the
ultimate responsibility for risk appetite and capital effectiveness of internal control systems, on
plans, within the parameters set by the Board. material control issues, and on accounting
judgements (including impairment), and
• The Board: One of the Board’s responsibilities a quarterly review of the adequacy of
is the approval of the risk appetite of the Bank. impairment allowances, relative to the risk
The NMB Bank Board is also responsible for the inherent in the portfolios, the business
adoption of the ERMF. environment, and NMB Bank’s policies and
methodologies.
• Board Credit Committee: The Committee
assists the full Board on the management of
credit risk by reviewing continuously the credit Internal Control Framework
portfolio, credit standards and Credit Policy.
Our Three Lines of Defence
• Board Human Resources and Remuneration
Committee (BHRRC): The BHRRC receives a Roles and responsibilities for risk management
detailed report on HR related risk management are defined under a ‘three lines of Defence’ model.
performance and risk profile, and proposals Each line of Defence describes a specific set of
on ex-ante and ex-post risk adjustments responsibilities for risk management and control.
remunerations. These inputs are considered
This model delineates management accountabilities
in the setting of performance incentives. The
and responsibilities for risk management and
primary function of the of the Committee is
the control environment. The model underpins
to assist the Board of Directors in fulfilling
our approach to risk management by clarifying
its oversight responsibility to shareholders
responsibilities and encouraging collaboration,
by ensuring that the bank has coherent
as well as enabling efficient coordination of risk
remuneration policies and practices that fairly
and control activities. As such, all NMB Bank’s
and responsibly reward executives and staff
employees are responsible for understanding and
having regard to performance, governing laws
managing risks within the context of their individual
and the highest standards of governance.
roles and responsibilities, as set out below:
• The Board Audit, Risk and Compliance
Committee (BARCC): The BARCC oversees

1. First line of Defence: all employees are required to ensure the effective management of risks within
the scope of their direct organizational responsibilities. The first line is responsible for identifying and
managing the risks they generate, establishing a control framework, and escalating risk events to Risk
and Compliance.
2. Second line of Defence: this comprises the Risk Control Owners, supported by their respective control
functions. Risk Control Owners are responsible for ensuring that the risks within the scope of their
responsibilities remain within appetite. The scope of a Risk Control Owner’s responsibilities is defined by
a given Risk Type and the risk management processes around that Risk Type.
3. Third line of Defence: the independent assurance provided by the Internal Audit (IA) function. Its role is
defined and overseen by the Board Audit, Risk and Compliance Committee.
Executive Management Committees As the overall executive body regarding strategy, performance,
and risk matters. From a risk perspective the Executive Committee
oversees NMB’s risk management and control environment.
Each of the committees reports to the Executive Committee, individually and collectively they serve as
executive forums to discuss and implement NMB’ s risk management.
Overall responsibilities of Management Committees:
• Oversee NMB’s risk management infrastructure, which includes frameworks, decision criteria,
authorities, people, policies, standards, processes, information, and systems.
• Approve risk policies and procedures, stress testing scenarios (including macroeconmic variable
projection) and the evaluation and endorsement of risk models.
• Assess and monitor specific credit concentration.
• Assess and approve risk-taking activities.
• Oversees new product approvals, assessing risks and their mitigating risk within the Bank and
the appropriate systems to monitor and manage the resulting risks.
• Achieve sustainable and stable profits within a framework of acceptable financial risks and
controls and to maximize the value generated from active management of balance sheet and
financial risks, within agreed risk parameters.
• Review and approve credit applications as per mandated credit thresholds.
Asset and Liability Wholesale Credit Retail Credit Product Approval

Committee Committee Committee Committee
Management Audit, Loan Portfolio Quality Risk and Compliance

Risk and Compliance Committee
Committee
Committee

Risk Appetite and Risk Thresholds the results are discussed at the BARCC.
Risk appetite is an expression of the amount of Stress testing and scenario analysis are used to
risk we are willing to take in pursuit of our strategic assess the financial and management capability
objectives, reflecting our capacity to sustain losses of the bank to continue operating effectively under
and continue to meet our obligations arising from a extreme but plausible operating conditions. Such
range of different stress trading conditions. conditions may arise from economic, regulatory,
legal, political, environmental, and social factors.
Our Risk Appetite is set by the Board and governed
by the Risk Appetite Statement. This seeks to Our stress testing framework is designed to:
reinforce our risk culture and provide clarity on
• Contribute to the setting and monitoring of risk
the risks that we are willing to accept. A robust
appetite.
organizational risk and governance culture, helps us
to further embed our Risk Appetite. We define our • Identify key risks to our strategy, financial
risk appetite in terms of both volatility of earnings position, and reputation.
and the maintenance of adequate regulatory
capital requirements under stress scenarios. We • Support the development of mitigating actions
also define a risk appetite with respect to liquidity and contingency plans.
risk, operational risk, and reputational risk. Our • Ensure effective governance, processes and
quantitative risk profile is assessed through a systems are in place to co-ordinate and integrate
bottom-up analytical approach covering all of major stress testing.
businesses and products. It is also assessed against
a range of exposure concentration thresholds. • Ensure adherence to regulatory requirements.
The bank’s risk appetite statement is approved by Our stress testing activity focuses on the potential
the Board and forms the basis for establishing the impact of macroeconomic, geopolitical, and physical
risk parameters within which the businesses must events on relevant customer segments, product lines
operate, including policies, concentration limits and and asset classes.
business mix. We will not compromise adherence to
our risk appetite in order to pursue revenue growth
or higher returns. NMB Bank’s Risk Culture and Code of
Conduct:
All NMB Bank’s staff must attest to the Bank’s
Stress Testing
Code of Conduct, and comply with all frameworks,
Stress testing is an integral part of NMB’s risk policies, and standards applicable to their roles. The
management processes and is used to evaluate the Code of Conduct outlines the purpose and values
Bank’s potential vulnerability to certain unlikely but which govern our way of working. It constitutes a
plausible events or movements in financial variables. reference point covering the aspects of colleagues’
It includes both sensitivity analysis and scenario working relationships, with other NMB employees,
analysis and is conducted regularly. Additional stress customers and clients, governments and regulators,
tests are carried out in response to microeconomic business partners, suppliers, competitors, and the
and macroeconomic conditions or portfolio
developments. Every stress test is documented, and

broader community. climate risk and strategic risk.
NMB Bank PLC is committed to maintaining a Each of the principal risks is overseen by an
robust risk culture in which: accountable executive within the Bank who
is responsible for the framework, policies and
• Management expect, model, and reward
standards that detail the related requirements.
the right behaviors from a risk and control
Risk reports to executive and Board committees
perspective.
are clearly organised by principal risk. In addition,
• Staff identify, manage, and escalate risk and certain risks span more than one principal risk;
control matters, and meet their responsibilities these are also subject to the ERMF and are
around risk management. reported to executive and Board committees namely
reputational risk.
• Specifically, all NMB Bank’s employees
regardless of their positions, functions or
locations must play their part in the Bank’s risk
management. All employees are required to be
familiar with risk management policies which are
relevant to their responsibilities, know how to
escalate actual or potential risk issues, and have
a role-appropriate level of awareness of the risk
management process as defined by the ERMF.
Our Principal Risks

The ERMF identifies eight principal risks and sets
out associated responsibilities and expectations
around risk management. The principal risks are
credit risk, market risk, liquidity and solvency risk,
technology risk, operational risk, compliance risk,

Principal Risk Definition Approach Oversight
Credit Risk Potential for financial loss due • Credit risk is managed through a Accountable executives:
to the failure of a customer to deep analysis and understanding of
Chief Credit Office
meet the agreed obligations our corporate customers’ business
activities, risks, returns and needs Chief Risk Officer
to pay the Bank. This also
together with the industry and Chief Retail Banking
includes concentration risk
economy in which they operate.
(large exposure to specific Chief Wholesale Banking
client groups, sectors, or • We apply a set of criteria and
policies to lending.
geographies) and decreases
in credit quality. • We have established risk appetite Accountable Committees
per sector, assigned credit ratings
Board Committees
and set lending limits. Risk appetite
statements are set and approved by • BARCC
the Board. • BCC
• We use our internally built Risk Management Committees
rating models using Bank’s loss
• RCC
data to assign Rating for Corporate
and Higher end Retail Portfolios. • LPQ
• We regularly monitor credit

exposures, portfolio performance,
and external trends that may impact
risk management outcomes.
• Internal risk management reports
are presented to risk committees,
containing information on key
environmental, political, and
economic trends across major
portfolios.
• Independent credit risk
management function that reports
to the CRO is responsible for
developing and maintaining
a robust credit stress testing
programme.

Our Principal Risks Continued
Market Risk The risk of loss arising from • We apply a set of market Risk Accountable executives:
potential adverse changes in policies to obtain the best balance
Treasurer
the value of the NMB’s assets of risk and return whilst meeting
customers’ requirements. Chief Risk Officer
and liabilities from fluctuation
in market variables including, • We actively manage our liquidity
but not limited to, interest and funding base to ensure that the
Accountable Committees
rates, foreign exchange, Bank always has sufficient liquidity
to meet its liabilities when due, under Board Committees
equity prices, commodity
both normal and stressed conditions, • BARCC
prices, credit spreads,
without incurring unacceptable
implied volatilities, and asset Management Committees
losses or risking damage to bank’s
correlations. • ALCO
reputation.
Primary categories of Market • We control our Treasury Banking • RCC
risks are Liquidity Risk, activities to ensure that losses related
Interest Rate Risk, Currency to market risk do not cause material
Risk, and Capital Risk. Impact to the Bank.
• The Bank’s Treasury Policy sets our
overall approach towards market risk
management. Treasury Policy consist
of Guidelines that provides more
details on each market Risk type and
set overall approaches, Standards
and Controls governing Market Risk
Stress Testing within NMB Bank.
• We measure the risk of losses
arising from future potential adverse
movements in market rates, prices
and volatilities using the VaR
methodology.
• Robust Internal Controls, processes
and systems which are reviewed
regularly have been assigned and
implemented to support our Risk
Management Approach.

Operational Risks The potential risk of loss • Operational risks can arise from Accountable executives:
arising from inadequate or all business lines and all activities
Chief Risk Officer
failed internal processes, carried out by the Bank. We seek to
systems and technology, poor systematically identify and manage
operational risk by segmenting all our Accountable Committees
management, human error, or
activities into manageable units.
external events. Board Committees
• Each unit undertakes self-risk
Operational Risk subtypes • BARCC
control assessments regularly by
includes Process failure,
evaluating the effectiveness of its risk Management Committees
External rules and and control environment, including
• RCC
Regulations, Liability, Legal compliance with legal and regulatory
enforceability, Damage to requirements.
Assets, Safety and Security, • Each unit conducts a Key risk
Internal Crime or Dishonest indicators assessment conducted to
and External Financial Crimes detect early warning signals and drive
appropriate management actions
before the risks materialise.
• We manage operational risk by
ensuring accountability and ownership
across the Bank.
• We have adopted five levels of
operational risk severity ratings
— insignificant, Minor, Moderate,
Major and Catastrophic —The Bank
mitigates these risks at all times,
balancing the cost of maintaining
a controlled environment against
the impact and likelihood of a risk
occurring.
• We monitor the stability of our
systems, the effectiveness of
business continuity planning and
disaster recovery to ensure the level
of service we offer customers, and
regulators’ expectations are never
compromised.

Our Principal Risks Continued
Climate Risk The potential adverse • We have developed a new Climate Accountable executives:
effects that climate change Risk Management Policy in line with
Chief Risk Officer
and the transition to a low- the Bank of Tanzania guidelines.
carbon economy can have The policy assigns clear roles and
responsibilities for managing climate- Accountable Committees
on financial institutions,
related financial risks, establishes
businesses, and investment Board Committees
lines of authority, and requires that
portfolios.
material risks are embedded into • BARCC
policies, processes, and controls.
• BCC
• A comprehensive NMB Climate
Risk Management Policy has been
developed to effectively manage • RCC
climate-related risks. This policy • LPQ
serves as a guiding document for
decision-making, ensuring strict
adherence to the provided guidelines.
• We have reviewed our Stress testing
policy to integrate climate-related
risks.
Technological The potential for technology- • The bank has adequate oversight Accountable executives:
Risk related events or issues of technology risks at the Senior
Chief Risk Officer
to harm the bank’s ability Management and Board of
to achieve its objectives. It Directors levels through governance
committees such as the Risk and Accountable Committees
encompasses a wide range
Compliance Committee, Executive
of potential challenges and Board Committees
Committee as well as Board, Audit,
uncertainties that can arise in
Risk and Compliance Committee. • BARCC
the context of technology use
• The bank manages technology risks Management Committees
and application.
through adequate implementation of
• RCC
technology risk policies that address
all key areas of cybersecurity, vendor
risk, IT operations, and third-party
risks.

Top and Emerging Risks
Economic Risk NMB Bank is exposed to Tanzania and Global economic and political risks, including Foreign-
currency liquidity challenges and a rising interest rate environment. These risks could impact
customer resilience and funding affordability. The outlook for the Tanzania economy remains
relatively stable. However, it may be affected by Global development, including falling economic
activity in developed markets and China, a high inflation environment, rising interest rates across
developed markets, elevated energy prices, and developing and emerging Geopolitical conflicts.
These risks are monitored closely with strategic plans adapted as appropriate.
We conduct stress tests on possible scenarios to forecast impact of certain market risks on our
performance, and ensure we take correct mitigating actions.
Regulatory Risk Future changes in economic policies, laws and regulations may have an impact on the bank’s
strategy. These changes could also affect the volatility and liquidity of financial markets, and more
generally the way we conduct business and manage capital and liquidity. The evolving regulatory
and reporting landscape – including Basel reforms, overhaul of accounting standards, financial crime
risks (encompassing money laundering and sanction risks), emerging privacy, cyber security, and
conduct legislation – may affect our business model and give rise to compliance risks.
The Bank implements new regulatory requirements and incorporates the implications of related
changes in its strategic and financial plans. Also, we continue to work with regulators to ensure the
Bank meets all obligations
Cyber attacks The prevalent threat of cyber-attacks on financial institutions remains one of our top concerns. NMB
operates a multi-layered approach to its defences and continues to invest significant resources in
developing cyber security controls and capabilities designed to minimise the potential effect of cyber-
attacks.
Climate related Risk Climate Change poses increasing serious threats to the global economy. Transition to a low carbon
economy may entail extensive policy, legal, technology and market changes which can give rise to
credit, Operational and reputational risks. We have embedded climate risk into our risk framework,
and adapting NMB Bank’s operations and business strategy to address the risks aligns with our
Sustainability strategy and Medium-term plan.
Competitive Environment NMB Bank operates in highly competitive markets, raising the threat of a loss of market share and
reduced revenue and profitability. The risks mainly relate to changes in regulation, developments in
financial technology, new entrants to the market and shifts in customer behavior. The Bank closely
monitors the competitive environment and adapts strategy as appropriate to deliver innovative and
compelling propositions for customers.

Top and Emerging Risks
Data stewardship NMB Bank relies on the effective use of accurate data to support operations and deliver its strategy.
Failure to produce high-quality data and the misuse, incomplete, non-protected or absence of such
data could result in a significant risk to implementing the Bank’s strategy, including reducing costs,
and meeting customer expectations. The Bank has a comprehensive framework of control in place to
manage and mitigate data risks, with continued investment into data management capabilities.
Fraud Risk The risk of fraud and other criminal activities is growing as criminals become more sophisticated
and as they take advantage of the increasing use of technology in society. Controls are embedded
in our policies and procedures across a wide range of the Bank’s activities, such as Origination,
recruitment, physical and information security.
ICT System Resilience NMB Bank continues to invest in Digital and Information technology infrastructure to prevent
customer service disruption, which could result in financial, reputational, and regulatory damage. We
have invested more in our digital and technology capabilities to mitigate these risks and minimise
service disruption.
Change Risk Implementing NMB Bank’s Medium-Term Plan and focusing on transformation can result in
heightened execution, operational, and people risks. NMB continues to manage and implement
change per its Medium-term plans while assessing implementation risks and taking appropriate
mitigating action. Furthermore, the Bank continues to monitor and strengthen its control environment
through robust governance and control frameworks. Managing change sustainably, efficiently, and
agilely is a priority for the Bank.
Geopolitical Events We face a risk that escalating Geopolitical events or conflicts could further impact trade flows, exert
further inflationary pressures, and impact some of our clients’ ability to pay their obligations. We
actively monitor the global political situations and conduct regular stress test of impact of such events
on our portfolios, which inform assessments of risk appetite and any need to take mitigating actions.
People Risk NMB’s success depends on its ability to attract, retain, and develop highly skilled, qualified, and
highly performing personnel despite a highly competitive labour market and internal cost reduction
pressures. Detailed resource planning and close monitoring of staff well-being and attrition levels,
including industry benchmarks. We have introduced our “Employee proposition” to help support
colleagues and strengthen our proposition in the market.
Reputational Risk The risk that the bank’s reputation is damaged by one or more reputational events and causes a
negative publicity to NMB’s business, products, practices, staff and/or financial condition. This kind of
publicity whether true or not, may impair the public and market confidence of NMB and may result in
costly litigation, decline in customer base, business or revenue.

REPORT OF THOSE
CHARGED WITH
GOVERNANCE AND
AUDITED FINANCIAL
STATEMENTS

Table of Contents
Corporate information 181
The Report of Those Charged

with Governance 182
Statement of Directors’
responsibilities 265
Declaration of the Chief Financial Officer 266
Independent auditor’s report 267 Financial statements:
Consolidated statement of profit or loss and other

comprehensive income 272
Bank’s statement of profit or loss and other

comprehensive income 274
Consolidated statement of financial position 276
Bank’s statement of financial position 277
Consolidated statement of changes in equity 278
Bank’s statement of changes in equity 280
Consolidated statement of cash flows 281
Bank’s statement of cash flows 282
Notes to financial statement 208 - 411

CORPORATE INFORMATION
DIRECTORS
Name Remarks
Dr. Edwin P. Mhede Chairman
Benson Mahenya Independent Non-Executive Director
Hendrik Reisinger Non-Executive Director
Juma Kisaame Non-Executive Director
George Mandepo Non-Executive Director
Clement Mwinuka Independent Non-Executive Director
Ramadhani Mwikalo Independent Non-Executive Director
Aziz Dachi Non-Executive Director
BOARD EXECUTIVE COMMITTEE
Name Remarks
Juma Kisaame Chairman
Dr. Edwin P. Mhede Member
Ramadhani Mwikalo Member
BOARD AUDIT, RISK AND COMPLIANCE COMMITTEE
Name Remarks
Clement Mwinuka Chairman
Aziz Dachi Member
Benson Mahenya Member
BOARD HUMAN RESOURCES AND REMUNERATION COMMITTEE
Name Remarks
George Mandepo Chairman
Ramadhani Mwikalo Member
Hendrik Reisinger Member
BOARD CREDIT COMMITTEE
Name Remarks
Hendrik Reisinger Chairman
Juma Kisaame Member
George Mandepo Member
COMPANY SECRETARY Mwantumu Salim
REGISTERED OFFICE NMB Head Office

Ohio/Ali Hassan Mwinyi Road
P.O. Box 9213
Dar es Salaam

CORPORATE INFORMATION (CONTINUED)
AUDITOR Deloitte & Touche
Certified Public Accountants (Tanzania)
3rd Floor, Aris House
Plot 152, Haile Selassie Road
P.O. Box 1559
Dar es Salaam
LAWYERS Galati Law Chambers Advocates Adca Veritas Law Group

P.O. Box 11317 P.O. Box 63238
Mwanza Dar es Salaam
CSB Law Chambers Nexlaw advocates

P.O. Box 375 P.O. Box 75578
Morogoro Dar es Salaam
K&M Advocates Apex Attorneys

P.O. Box 71394 P.O. Box 34674
Dar es Salaam Dar es Salaam
Baistar Advocates Locus Attorney

P.O. Box 1854 P.O. BOX 4110
Mbeya Dar es Salaam
Derost Attorneys & Law Counsellors CLYDE & CO

P.O. Box 1481 P.O Box 80512
Mtwara Dar es Salaam
Goldmark Attorneys Dexter Attorneys

P.O. Box 1605 P.O. Box 1976
Dodoma Arusha
MM Attorneys Vemma Consult Attorneys

P.O. Box 7281 P.O. Box 7297
Breakthrough Attorneys Kemi Advocates

P.O. Box 72838 P.O. Box 106196
Eastwoods Attorneys KZR Law Chambers

P.O. Box 72432 P.O. Box 988
Dar es Salaam Mwanza
Luno Law Chambers

P.O. Box 75045
Dar es Salaam

NMB BANK PLC
THE REPORT OF THOSE CHARGED WITH GOVERNANCE
FOR THE YEAR ENDED 31 DECEMBER 2023
1 INTRODUCTION
Those charged with governance, the Board of Directors (the “Directors”), are honoured and have the
pleasure to submit their report and the audited financial statements for the year ended 31 December
2023, which discloses the state of affairs of NMB Bank Plc (the “Bank” or “NMB” or “Entity”) and its
subsidiary, Upanga Joint Venture Company Limited (“UJVC”) together hereinafter referred to as, the
“Group”.
This report has been prepared in compliance with the revised TFRS 1: The Report by Those Charged
with Governance issued by the Tanzania’s National Board of Accountants and Auditors (NBAA), effective
on 1 January 2021.
2 INCORPORATION
The Bank is incorporated in Tanzania under The Companies Act, Cap 212 (as amended), as a public
company limited by shares with the International Securities Identification Number (ISIN) TZ1996100222.
The Bank was established in 1997 and listed on the Dar es Salaam Stock Exchange (DSE) in 2008.
3 VISION
To be the preferred financial services partner.
4 MISSION
To be the Bank of choice, delivering an innovative and transformative customer experience that promotes
financial inclusion and wellbeing.
5 ENTITY OPERATIONS
NMB is a fully-fledged commercial bank incorporated in the United Republic of Tanzania and licensed
under the Banking and Financial Institutions Act, 2006 to conduct banking business in Tanzania. The
Bank is regulated by the Bank of Tanzania (BoT) and is subject to the provisions of the Banking and
Financial Institutions Act, 2006 and its regulations.
The Bank is a Public Company limited by shares that were incorporated in the United Republic of Tanzania
in 1997 under the Companies Act, Cap 212 (as amended) and was listed on the Dar es Salaam Stock
exchange (DSE) in 2008, under the ticker symbol NMB.
The Bank takes customer deposits, provides credit facilities, and offers other commercial banking services
and related financial solutions. Through its three main business divisions, Retail, Wholesale and Treasury,
NMB provides a suite of financial services and products to retail customers, farmers, industrialists, small
businesses, corporations, institutions, and the Government. As of 31 December 2023, the Bank has 231
branches, 715 ATMs, 54 cash collection points (CCPs), 2 stand-alone Bureau de Change outlets and
28,295 active agents nationwide.
The Bank’s subsidiary, Upanga Joint Venture Company Limited (UJVC), specializes in property
development and leasing to potential tenants.

NMB BANK PLC
THE REPORT OF THOSE CHARGED WITH GOVERNANCE (CONTINUED)
6 EMPLOYEES’ WELFARE
Gender Parity
As of 31 December 2023, the Bank had 3,642 employees (in comparison of 3,544 employees in 2022),
out of which 52% were male and 48% were female. The Bank’s Diversity and Inclusion (D&I) policy
continues to drive the diversity, equity, and inclusion agenda. Gender diversity in the total workforce
composition of NMB from 2019 to 2023 is provided in the table below:
Key Employee Figures 2023 2022 2021 2020 2019
Total Employees 3,642 3,544 3,482 3,465 3,450
Total % of Women 48% 48% 48% 48% 47%
Management and Employees’ Relations
The employee relations landscape across the bank’s network has remained very stable, as evidenced
by the healthy working relations between management and trade unions with regular interactions and
engagements between the parties.
Employee engagement continues to be a strategic focus for the bank due to its direct impact on
productivity, quality of service embodied in customer satisfaction, and overall business success. The
Bank leverages on various initiatives geared towards driving engagement. These initiatives include
SIKIKA Forums (quarterly employee engagement forum with key management personnel), Quarterly
CEO Townhall Meetings, an open-door policy, engagement through Human Resources champions, and
ExCo Zonal Mentorships.
The Bank remains steadfast in its vision of being the employer of choice in Tanzania by attracting and
retaining best talents in the market. In this spirit, NMB is committed to policies, standards and practices
that provide equality of opportunity for all, protect the dignity of employees, and promote an environment
that fosters innovation and growth.
Performance Management
NMB’s robust performance management system integrates regular feedback sessions and goal-setting
exercises. The Bank’s inclusive performance management stems from the bottom-up approach as
evidenced by 99% of employees who actively participated in performance reviews, fostering a culture of
continuous improvement and accountability.
Training
The Bank allocated TZS 5.3 billion in 2023 for staff training, representing an 8% increase from the previous
year (2022), to enhance the much-needed employees’ technical skills and overall performance. A total of
227 training programs were conducted, with an average of 2 trainings per staff member and an average
of 28 staff members participating in each program. Training programs have been and are continually
being developed to ensure employees are adequately trained at all levels. All employees have an annual
training plan to upgrade skills and enhance development.
Medical Assistance
All staff and their dependents (spouses and up to four children) are provided with medical services by the
bank through an external service provider. Staff’s parents and their in-laws are included under medical
insurance with the current external service provider.

NMB BANK PLC
6 EMPLOYEE’S WELFARE (CONTINUED)
Diversity, Equity, and Inclusion (DE&I)
NMB is an equal-opportunity employer, and we hire based on merit, competencies, and organizational fit,
regardless of gender, ethnicity, background, or physical attributes.
The Bank gives equal opportunities to all and creates a conducive working environment where individuals
are respected, supported, empowered, and included. The Bank’s commitment to diversity and equal
opportunity is covered through its Diversity and Inclusion Policy which seeks to promote diversity and an
inclusive culture within the organization.
Currently, females represent over 48% of the bank’s workforce and 31% of all leadership roles. While
there is more work to be done, these figures represent good progress along the Bank’s efforts in ensuring
equitable representation of women across the organization.
In recognition of the Bank’s commitment to gender equality, in October 2022, NMB became the first
financial institution in Africa to gain workplace gender equality certification using a global assessment
methodology, the Economic Dividends for Gender Equality (EDGE).
Financial Assistance to Staff
Loans are available to all confirmed employees depending on the eligibility assessment per the bank’s
policies. Loans provided to employees include personal loans, vehicle loans, mortgage loans, and other
advances. Below is a summary of total staff loans outstanding balance in 2023 and 2022:
TZS’ Millions TZS’ Millions %
2023 2022 Change
General Staff loan 285,358 245,981 16%
Staff Mortgage Loan 12,953 8,767 48%
Staff Car Loan 2,333 1,715 36%
Staff Annual Loan 171 189 -10%
IPF Loans 92 122 -25%
Prepaid House allowance 1,263 1,244 2%
Total 302,170 258,018 17%
Physically-Challenged Persons
Applications for employment by physically-challenged persons are always considered, bearing in mind
the aptitude of the applicant concerned. In the event of staff members becoming physically-challenged
persons, every effort is made to ensure that their employment with the bank continues, and appropriate
training is arranged. The Bank’s policy is that training, career development and promotion of physically-
challenged persons should, as far as possible, be identical to that of other employees.
Employees Benefit Plan
The Bank is obligated to make mandatory contributions to publicly administered pension plans, which are
considered well-defined contribution plans. Various pension legislations and regulations determines these
plans. For example, PSSSF offers employee pension plans, where a pension allowance contribution of
20% is made. NMB has made a deliberate decision to support staff under this person scheme where
employees contribute only 5% and the bank contributes 15% of the basic salary. The financial statements,
note 16, reveals that a total of TZS 21 billion was paid under pension plans for the year 2023 (2022: TZS
19 billion).
NMB BANK PLC
7 OPERATING STRUCTURE
NMB Bank’s Operating Model
The Bank’s operating model enables the bank to manage resources and relationships responsibly to
deliver the best outcomes for stakeholders. The business is anchored by a corporate philosophy that
is centered around customer focus and agility to change while encouraging for a robust and economic
transformation.
The Bank develops and distributes a wide range of solutions, products, and services tailored to our
market segments in a secured and accessible channel and runs a strong customer care program. These
activities help to ensure sustainable business growth and high levels of financial output. In turn, the Bank
uses the financial output to reinvest in the resources and relationships we rely on to do business and
deliver our core purpose.
Our Offerings: Solutions, Products, and Services
The Bank has grown to become the most innovative and preferred financial solutions and services
partner, supported by unique and updated services such as agency banking, mobile banking, and Internet
banking. The core solutions and services provided by the bank include retail banking, consumer banking,
payment solutions, corporate banking, treasury services, business banking, agribusiness, bancassurance
services, custody services and advisory services.
Resources Management
The Bank’s relevance today and in the future, along with our ability to create long-term value for our
stakeholders, is dependent on our readiness and ability to effectively manage and leverage the forms of
capital available to us.
Financial Capital
This capital enables us to deliver sustainable funding for our business activities. The Bank maintains
a strong level of capital to support its business growth strategies and to meet regulatory requirements.
We deploy this capital to productive opportunities to sustain our business, leverage growth, achieve
sustainable returns, and create value for the Bank’s shareholders and our stakeholders (including the
community in which we operate).
The Bank has pursued a balanced funding strategy that enables us to reward shareholders while at the
same time providing funds to support our business growth ambitions. The balance sheet has recorded
a steady growth over the years to TZS 12.2 trillion (18.9% YoY) as of the end of the year 2023, with
shareholders’ funds growing to TZS 2.1 trillion (23.6% YoY) as of the end of December 2023. The Bank
paid shareholders dividends in June 2023 to TZS 143.1 billion for the year ended 31 December 2022.
In addition to the retained earnings, most of the bank’s funding comes from customer deposits, which
comprises the majority (83%) of our funding base. In 2023, through the Bank’s wide distribution networks,
enhanced customer propositions, and solid financial footing, we attracted and mobilized a good mix of
deposits to support our business growth ambitions. Our customer deposits grew by 11.5% year-on-year
to TZS 8.5 trillion, with the majority comprised cost-effective deposits, which supported a 28.1% growth
in our loan book to TZS 7.7 trillion. The borrowed funds, mainly from our key strategic and development
partners, stood at TZS 1.4 trillion at the end of December 2023.

NMB BANK PLC
7 OPERATING STRUCTURE (CONTINUED)
Resources Management (Continued)
Financial Capital (Continued)
The Bank has robust internal policies for capital and liquidity management, in line with regulatory
requirements, which ensure all its obligations to stakeholders are met on a timely basis and that strong
returns are achieved from these investments. With a Liquid Assets Ratio (LAR) of 33% as of the end of
December 2023, our balance sheet can adapt to the current and emerging opportunities and changes in
our external context, enabling us to respond appropriately to borrowers and new prospects when these
arise.
Cost efficiency also guides the bank’s financial decision-making, ensuring we manage our operating
costs with necessary effectiveness. The Bank has pursued various strategies and initiatives aimed at cost
optimization, with further efficiency gains during the year, resulting in a cost-to-income ratio of 39.0% as
of the end of December 2023 (2022: 41.7%).
Asset quality continues to be an area of emphasis, with further improvements seen in overall credit quality
during the year. The Bank’s NPL ratio for the year stood at 3.2%, below the regulatory threshold of 5%,
with the performance anchored on proactive and close customer relationship management. In addition,
we have robust risk management measures and credit underwriting policies that underpin our approach
to lending.
The Bank will continue to enhance its balance sheet to remain agile and adapt to any changes in the
business operating environment as enabled by stable funding position, adequate capital position, and
improved asset quality. The Bank will continue to invest in automating our business algorithms, by using
information and communication technologies (ICT), for increased operational efficiency, convenience to
our customers, and diligently oversee the utilization of financial resources in the bank’s operations.
Human Capital
People remain the critical factor in deriving positive results from all other capitals as they carry the
vision of the bank. Therefore, human capital (embodied in people) is at the core of the bank’s strategic
ambitions. To deliver on our strategic ambitions, we have a team of 3,642 employees drawn from diverse
professional backgrounds, serving our customers across the business networks. The Bank continues to
buttress it’s human capital by investing in human resource development, focusing on, but not limited to,
training, staff wellness, staff recognition, competitive remuneration, and career growth.

Fostering a performance-driven culture
NMB is committed to having a strong ‘high performance’ culture, whereby an extrinsic rewarding of good
performance is one of the key elements of the bank’s remuneration philosophy and policy. To embed the
high-performance culture across the network, the bank reviews performance through financial and non-
financial lenses and assess individual performance on ‘what’ is achieved. This approach applies equally
to executives and all other employees. In 2023, the People agenda continued to focus on enhancing staff
productivity across the bank, in line with the bank’s goal of being customer-centric and highly performing.
Annualized income per staff in 2023 was TZS 386 million (2022: TZS 342 million). This is an increase of
12.9% year-on-year. During the year, the bank undertook various programs, including both virtual and in-
person training courses, to build the capacity of staff to be able to position the bank to achieve its strategic
goals and deliver its mission.

NMB BANK PLC
Human Capital (Continued)
Investing in our People
A key pillar of the bank’s people strategy is to develop and nurture talents across the NMB network.
To achieve this, the bank has continued to invest significantly in staff Learning & Development (L&D),
welfare, rewards, and benefits. In 2023 the Bank invested over TZS 298 billion in staff related costs (an
increase of 12.0% from TZS 266 billion in 2022). Staff costs currently contribute more than 54% of the
bank’s total costs, further highlighting the bank’s unwavering commitment towards employees’ welfare.
Diversity and Inclusion
Diversity, equity, and inclusion are cornerstones for the bank as they provide a competitive advantage by
enriching the composition of the talented team. The Bank continues to support all staff (in line with our
diversity and inclusion agenda) to achieve their career goals in the bank through deliberate efforts around
performance management, coaching, and mentoring. To this end, the bank continues to implement
initiatives that drive this agenda.
Intellectual capital comprises the bank’s brand perception, its intellectual property, and its overall capacity
to be innovative in the provision of its products and services. At NMB, our intellectual capital includes
highly talented human capital, leading technological innovations, our systems and processes, our rich
heritage, and a strong brand that resonates with over 7 million customers in Tanzania.
Brand and Reputation
NMB brand is supported by marketing efforts, investor relations, well-trained personnel, and customer
advocacy. The Bank is geared to create positive customer experiences at every touch point. The Bank
periodically undertakes a review of brand health, identifying top brand drivers and the stress points with
specific remedial actions. To this end, NMB has invested in various products and solutions and has a
contact center that handles a high volume of customer engagements. Furthermore, the Bank ensures
its reputation remains solid, driven by rigorous and professional stakeholders’ engagement, compliance
with regulatory requirements, and a strategic communications approach. The Bank maintained a positive
tonality level of 99% during the year 2023.
Innovation
Products and services need to be reflective of the ever-evolving customer needs to remain relevant.
During the year, our innovation teams continued to work on different projects to enhance customer
propositions through continued innovation and development of our platforms. The ongoing innovation
has resulted in better customer experience, improved system efficiencies, and helped unlock big data
potential for future product development.

NMB BANK PLC
Technology
Technology plays a pivotal role in driving our growth, performance, and operations. To drive the digital
transformation agenda, we have recruited specialists in key areas, including Data Analytics, Data
Architecture, and Systems Development, to enhance our technological capabilities. We have also made
several enhancements to our technological infrastructure, resulting in improved stability, connectivity, and
service availability. Nonetheless, an upsurge in the usage of digital channels and technology means an
increase in potential risks that target technology solutions and clients on various platforms. To enable us
to protect against potential attempts, we enhanced our overall cyber-security environment to safeguard
our information and technological assets. We regularly carry out tests on our systems for cyber risks and
security as we continue to prioritize the safeguarding of our client’s information. Our customers entrust
us with confidential and personal information that we keep safe and aim to always comply with respective
data protection requirements.
Manufactured capital consists of equipment, physical facilities and infrastructure, digital channels such as
ATMs, and technology whose value is realized in the delivery of products and services. Our equipment
and facilities primarily provide comfort, convenience, and security to our customers and employees.
Our wide distribution network and innovative digital platforms, including the mobile banking, cards, and
agents, provide competitive differentiation and are key delivery channels which support the widening of
access to financial services in the country – over 96% of all our customer transactions are carried out on
our alternative channels. We invest constantly to improve our infrastructure, which is essential for the
efficiency of our business model.
Bank’s Channels:
To complement the wide branch distribution, the bank has invested heavily in innovative delivery channels,
which have played a critical role in improving access to financial services and widening financial inclusion.
NMB Mkononi: NMB Mkononi is a mobile banking service that enables customers to enjoy easy
•
access to various banking services, including money transfer and payment services. NMB Mkononi
has continued to reach many customers who would have remained unbanked. In 2023, the mobile
banking (NMB Mkononi) users increased by 5.9%, reaching 4,952,822 users from 4,677,020 in 2022.
Agency Banking: The Bank has been at the forefront of widening financial inclusion by implementing
•
the agency banking model. Through agents, the bank can extend banking services in areas where
banking services are unavailable or not easily accessible. With 28,295 agents as of the end of
December 2023, agency banking also creates business opportunities for service providers, allowing
them to create income and employment where it is most needed. Agents enable customers to access
banking services, including deposits, withdrawals, and bill payments beyond official banking hours.
Due to the greater geographical area covered by agents, customers also enjoy greater convenience
as services come closer to their most accessible location.

NMB BANK PLC
Bank’s Channels (Continued)
• Internet Banking (NMB Direct): NMB Direct is the bank’s internet-banking solution, which enables
customers to do end-to-end banking through a secure and feature-rich platform. The platform continues
to be enhanced to improve the overall customer experience and see good growth year on year in
the number of users. In 2023, the number of Internet Banking users increased by 66.5% reaching
41,652 users from 25,020 in 2022. More details are shared under Note 10 to Those Charged with
Governance.
Branch Network and ATM: Our footprint across the country consists of 231 branches and 715 ATMs,
•
which support service delivery to our customers nationwide. Services accessed by customers in our
ATMs include cash withdrawals and deposits, balance inquiries, and cardless cash withdrawals. More
details are shared under Note 10 to Those Charged with Governance.
Cards and Merchants: We have a widely recognised range of card-based payment products,
•
including debit cards, credit cards, prepaid cards, and QR codes as cash-free payment solutions. Our
debit and credit cards can also be used for online e-commerce transactions. Our cards feature industry
PCI security standards to safeguard our customers’ transactions. We have partnered with various
merchants to offer card discounts to our customers to support cash displacement.
ICT infrastructure
The Bank invests optimally in ICT to improve the overall customer experience. Various robust digital
platforms enable us to offer enhanced digital experiences to our customers. As a result of the continued
investment in the digital space, we remained a top-tier financial institution in the country, providing
innovative solutions, improving ease of access to banking services, and ensuring system availability and
reliability.
We are also upgrading the Core Banking System (CBS) to ensure continued stability and enhanced
customer satisfaction.
We are keen to ensure that we remain a pacesetter for the progressive modernization of the infrastructural
and manufactured capital, improving efficiency and enhancing our multi-channel customer engagement
while creating a scalable and resilient infrastructure. Our investments in these areas will deliver a more
efficient, scalable, and flexible infrastructure to support our strategic ambitions.
Natural Capital
Natural capital encompasses the natural resources that we employ in our value creation for our
stakeholders. We are committed to responsibly employing natural resources, ensuring that we minimize
negative impacts on the resources. The Bank recognizes its responsibility to achieve global climate
goals and is investing optimally to ensure systemic change. Internally, the bank is committed to reducing
its carbon footprint by continuing to install energy-efficient LED lighting and HVAC systems across the
network. We will continue to identify effective ways to use and manage the natural resources that are
available to us more efficiently and support our customers to elevate ESG compliance.

NMB BANK PLC
Social and Relationship Capital
At NMB, we firmly believe that we can only prosper if the communities that have given us the social license
to operate thrive. This is what forms the basis of our social and relationship capital. The social and
relationship capital broadly represents the bank and the relationships within and between communities,
various stakeholders, and the ability to enhance individual and collective well-being. To champion socio-
economic development, the bank implements various social impact initiatives through its Corporate Social
Investment arm, which serves as its corporate philanthropy vehicle.
The social investment programs are guided by the key pillars of Education, Health, Natural Disaster
Recovery, and Financial Skills-building for various groups. To deepen its impact on communities, the
NMB Foundation was established as a vehicle to broaden social impact. A core facet of the revamped
model seeks to leverage the bank’s strategic partnerships with local and international stakeholders,
including development organizations and the private sector, to advance social and economic change for
Tanzanians further.
We maintain strong and positive working relationships with our industry regulators and key stakeholders,
including the Government of the United Republic of Tanzania and Revolutionary Government of Zanzibar.
The relationships have been deepened through enhanced engagements to support the bank’s overall
mission.
8 OPERATING ENVIRONMENT
Global Macro Landscape and Economic Overview
In 2023, the world economy grew at a modest pace and uneven across countries and regions. The global
economy is estimated to have expanded by 3.1% in 2023, a slight dip from 3.5% in 2022 (IMF WEO
Update January 2024). In Advanced Economies, economic growth slowed from 2.6% in 2022 to 1.6% in
2023 on the back of subdued economic activity in the Euro area and the UK due to high inflation, which
continued to limit household spending. In developing countries, however, economic growth remained
at 4.1% in 2023 as in the previous year due to lagging effects from COVID-19 and the Russia-Ukraine
conflict.
While global economic growth is projected to remain at 3.1% in 2024, a slight growth recovery is anticipated
to be at 3.2% in 2025 (IMF WEO, January 2024), aligning with the resurgence of global demand, easing
financial conditions, and the restoring of inflation rates within Central Banks targets. Economic growth
is expected to slow down among developed economies such as the Euro bloc, the UK, and the US.
The monetary policies are anticipated to exert downward pressure on growth, while external factors like
geopolitical tensions, climate change, tightening credit conditions, commercial real estate challenges,
and high mortgage rates may contribute to inflationary pressures.
Furthermore, China faces challenges such as growth deceleration in 2024 and 2025 due to supply
and distribution disruptions, funding difficulties after real estate developer defaults, and home buyer
confidence issues. The property sector remains a potential weak point, though ongoing policy support
may sustain recovery hopes. The International Monetary Fund (IMF) predicts that India’s GDP output
growth will experience a marginal uptick to 6.7% in 2024, followed by a 6.5% increase in 2025. These
projections indicate a sustained growth path, positioning the country as one of the G-20 nations with the
highest economic expansion.

NMB BANK PLC
8 OPERATING ENVIRONMENT (CONTINUED)
Global Macro Landscape and Economic Overview (Continued)
espite global economic challenges, inflation has generally trended downward in recent months,
D
remaining below the target levels set by various central banks. Global inflation is estimated to have
decreased from 8.7% in 2022 to 6.8% in 2023 (IMF WEO Update January 2024), mainly due to lower
food and oil prices, tightening monetary policies, and reduced household spending. The decrease in oil
prices was driven by restrained demand in advanced economies, subdued economic activity in China
and the increase in shale oil inventories in the US, which exerted downward pressure on oil prices.
Lower inflation is expected in 2024 across many economies, particularly in developed economies where
effective monetary policy has contributed to disinflation.
Central banks have maintained interest rates steady to mitigate risks associated with reduced economic
growth, inflation, property market challenges, decreased consumption, and heightened geopolitical
tensions. A continued decline in global inflation is projected, however, a longer duration is anticipated for
inflation rates to return to target levels in numerous economies, necessitating a delicate balance between
inflation mitigation and recession prevention.
Africa Region Highlights
Africa’s economic growth has been hampered by persistent challenges, including the long-lasting impact
of the COVID-19 pandemic, the Russia-Ukraine conflict, rising energy and food prices, climate change,
fiscal structural issues, monetary policy tightening, and increased borrowing costs.
In 2024, Africa is projected to experience modest economic growth of 4% from 3.3% (IMF World Economic
Outlook Update, 2024), with most countries in the continent showing an acceleration compared to the
previous year. Among the different regions, the East Africa bloc is expected to outperform others in terms
of economic growth. However, it is important to note that major African economies, including the Sahel
region, Algeria, Ghana, and South Africa, face potential political risks due to upcoming major elections.
These elections could have an impact on the economic stability of these countries.
One of the emerging challenges that some African countries will face in 2024 is the financial strain caused
by Sovereign debt and the burden of repayment. According to IMF, the region’s ratio of interest payments
to revenue, a key metric to assess debt servicing capacity and predict the risk of a fiscal crisis, has more
than doubled since the early 2010s and is now close to four times the ratio in the advanced economies.
These trends sparked concerns of a looming debt crisis in the region. However, resource-intensive
economies and major commodity exporters are expected to fare well due to the intense competition and
high prices for Africa’s hydrocarbons, mining sector output, and agricultural produce. This will continue
to attract substantial investment in Africa, especially in the energy sector, as well as minerals and metals
that play a crucial role in the global energy transition and digital transformation.
The Inflationary pressures are expected to ease in the most African countries in 2024, compared to the
elevated levels recorded in 2023. Admittedly, however, analysts indicate generally that few countries,
including Angola, the Democratic Republic of Congo (DRC), Ethiopia, Egypt, Ghana, Nigeria, Sudan, and
Zimbabwe, will continue to potentially face double-digit inflation. This inflationary environment can pose
challenges to these economies and may require specific measures to address.

NMB BANK PLC
Africa Region Highlights (Continued)
Exchange rates in African countries are expected to face modest depreciatory pressure in 2024,
except in the CFA franc zone, where currencies will remain pegged to the euro, leading to appreciation.
Additionally, states with excessively high inflation rates will experience a more substantial depreciation
in their exchange rates. These exchange rate dynamics will have implications for trade and economic
stability.
Sub-Saharan Region
The Sub-Saharan Africa (SSA) region growth is predicted to accelerate to 3.7% in 2024. Excluding 2021,
the peak year for post-COVID-19 recovery, this is the fastest rate of growth in a decade and positions SSA
as a global outperformer, given slowing growth in developed markets. However, faster headline growth
masks underlying vulnerabilities, with inflation remaining sticky and elevated debt-servicing costs putting
pressure on fiscal balances and foreign reserves.
East Africa Bloc Outlook
Despite the slowdown, East Africa remains the fastest-growing region in Africa. GDP growth is expected
to outpace its counterparts (The Economist Unit, 2023). This will be supported by a full recovery of the
services sector, private consumption, and improved export performance.
East African FX rates were broadly stable from 2016-20 but showed weakness in 2021-23 as the US
Dollar strengthened. Thus, currency weakness has, until recently, not been an issue faced by most.
Table 1: Currency devaluation of the East Africa major economies:
Country 5 Years 10 Years 20 Years

Kenya 9% 6% 4%
Tanzania 2% 5% 4%
Uganda 0% 4% 3%
Rwanda 7% 6% 4%
Tanzania Focus: Operating Environment, Market Overview and Outlook
Tanzania’s economy demonstrated resilience against domestic and external shocks, yet it faced
challenges from an unfavorable global economic setting and domestic factors that exerted pressure on
its growth trajectory.
Following a slowdown to 4.7% in 2022, GDP growth rebounded in 2023 and is expected to grow 5.3%,
according to the Bank of Tanzania. This resurgence was predominantly fueled by robust expansion in the
service sectors, notably financial and insurance services, along with information and communications.
The mining and quarrying sectors witnessed a 10% expansion, attributed to increased activities in coal
extraction.
Agriculture, constituting approximately 27% of the total domestic gross production, was the primary
contributor to GDP. With favorable weather conditions in 2023, the agriculture sector is poised for
continued growth in 2024. The Government projects a 10% growth in the agriculture sector by 2030.

NMB BANK PLC
Tanzania Focus: Operating Environment, Market Overview and Outlook (Continued)
Inflation:
Inflation peaked at 4.9% in January 2023 and decelerated to 3.0% by December 2023, comfortably below
the bank of Tanzania’s 5.0% target. Factors contributing to this decline included a significant drop in non-
core inflation, less accommodative monetary policies, diminishing inflationary pressures, the positive
impact of improved weather conditions on crop harvests, and alongside government policy responses in
agricultural sector.
Liquidity and Monetary Stance
The private sector experienced robust credit growth in 2023, surging to 17.1%, surpassing the 16.4%
target, driven by increased economic activities, an upsurge in demand for capital spending, and a
generally optimistic economic outlook. While overall lending rates remained relatively stable at 15.34% as
of December 2023, deposit rates marginally increased by 4.52 basis points to 7.45% in 2023 compared
to 6.94% % in 2022.
Within Tanzania’s economic blueprint, specifically under the ‘Agenda 10/30,’ agriculture is a pivotal growth
driver. The overarching objective of this initiative is to realize a 10% expansion in the agricultural sector
by the year 2030. Critical factors integral to its success includes fiscal and monetary policy support,
augmenting the labour force and land allotments, prioritizing irrigation schemes, implementing a ‘block
farm’ model, and incorporating advancements in seed multiplication techniques.
Looking ahead: According to the International Monetary Fund (IMF), Tanzania’s economy is projected to
grow by 6.1% in 2024, buoyed by a tourism rebound, an improved business environment, and agricultural
growth supported by a favorable harvest season. Inflation is expected to stay within the Bank of Tanzania’s
5% target.
35.0 25%
32.1
30.0
27.3 20%
25.0
22.3
TZS Trillion
20.3 17%
19.7 15%
20.0
23%
15.0
11% 10%
10%
10.0
5%
5.0
3%
0.0 0%
2019 2020 2021 2022 2023
Total Credit to Private

Sector in Tanzania Growth (RHS)
Figure 1: Bank of Tanzania (BOT) Monthly Economic Review - January 2024

NMB BANK PLC
Regulatory Environment in Tanzania Financial Services Sector

The oversight role of the Bank of Tanzania in supervising financial institutions remains paramount for
fortifying the stability and soundness of the financial sector. The regulatory environment stands as a
bastion of stability, and our ongoing engagements with regulators exemplify our unwavering commitment
to achieving optimal compliance.
In 2023, the Bank of Tanzania introduced new regulations. The new regulations include the Foreign
Exchange (Bureau De Change) Regulations 2023, The Banking and Financial Institutions (Capital
Adequacy) Regulations 2023, The Banking and Financial Institutions (Liquidity Management) Regulations
2023 and The Banking and Financial Institutions (Prompt Corrective Actions) Regulations 2023.
The new liquidity management and capital adequacy regulations signify the broader adoption of Basel II
and Basel III reporting frameworks requirements of the Basel Committee on Banking Supervision (BCBS),
aimed at ensuring that commercial banks have sufficient liquidity and capital levels to be resilient in times
of crisis or internal and external shocks and maintain public confidence in the banking sector.
The new regulations require banks and financial institutions to maintain a Common Equity Tier1 (CET1)
ratio of not less than 8.5%, a leverage ratio of not less than 7%, a stock of unencumbered high-quality
liquid assets (LCR) amount not less than 100% of total net cash outflows, and a net stable funding ratio
(NSFR) of not less than 100% at all times.
Banks are accorded between 18 to 54 months moratorium periods to ensure compliance with the new
regulations. Notably, as of December 31, 2023, NMB has conducted a gap analysis on the new regulatory
requirements, and we are on course to ensuring compliance.
Tanzania Banking Sector: Higher Credit Growth and Rising Profitability.
The accommodative business environment in Tanzania supported banks’ financial results in 2023 through
increased credit portfolio expansion, elevated total revenue, and significant increase in profitability.
Despite a slight softening, credit growth in the private sector persisted with double-digit increases due to
post-pandemic pent-up demand for credit.

NMB BANK PLC
Tanzania Banking Sector: Higher Credit Growth and Rising Profitability (Continued)

Banking Sector’s Loans & Deposits
37.1
32.6
32.9
27.7 27.1
23.8 24.6
21.9
19.0 19.8
2019 2020 2021 2022 2023
Figure 2: Illustrates the five-year performance of loans and deposits in the banking sector. Loans
Source: Bank of Tanzania 2023, Fourth Quarter Statistical Bulletin
Deposits
The Tanzanian banking sector recorded robust performance and remained stable and resilient to short-
term internal and external shocks, mainly on account of a stable macroeconomic landscape.
Overall, Tanzania’s banking sector registered profit after tax of TZS 1.6 trillion in 2023, a 70% rise
compared to the previous year. The non-performing loan ratio declined to 4.3%, indicating improved
banking sector loan portfolio quality, whereby strong economic growth and an improved operating
environment contributed to ongoing reductions in non-performing loans and loan loss provisions. The
cost-to-income ratio stood at 50.7% (2022: 54.0%), highlighting significant efficiency gains across the
sector. Loans and advances growth accelerated to reach TZS 32.9 trillion, further highlighting increased
private sector credit appetite.
The banking sector also has robust capital adequacy levels, with capital above regulatory requirements.

NMB BANK PLC
Selected Financial Soundness Indicators as Per Bank of Tanzania (BOT)

NMB
Financial Ratios (%) Industry Position*
Bank
2023 2022 2021 2020 2019
Core Capital/TRWA+OBSE 23.3 18 20 17 17
Total capital/TRWA+OBSE 23.3 19 20 18 18
Liquid assets to demand liabilities 33.2 27 29 31 32
Gross NPLs to gross loans 3.2 6 8 9 10
Return on assets 4.7 3 3 2 2
Return on equity 28.6 15 12 8 8
Net open positions to total capital 2.0 3 8 9 9
Source: Bank of Tanzania; Financial Sector Supervision Annual Report FSSA 2022, and NMB computation
Note: *The 2023 FSSA 2023 is expected to be issued in September 2024,
OBSE is off-balance sheet exposure, and TRWA is total risk-weighted assets.
According to industry benchmarks, NMB remains the top performer in its class. As stated in the Tanzania
Financial Sector Supervision Annual Report 2022, which assesses the financial sector’s sustainability,
NMB has consistently surpassed the industry standard, highlighting its exceptional financial soundness
indicators.
NMB Performance in the Banking Industry
The Bank maintains its position as the leading bank in Tanzania, demonstrating superior profitability
metrics across various dimensions. The bank achieved an outstanding profit after tax of TZS 542 billion,
securing the highest market share at 34.4%. Notably, the Bank’s efficiency ratio surpassed the industry
average, establishing it as the foremost performer in this category. Refer to the table below.
Key performance indicators of the bank in comparison with the industry in 2023.
KPI Industry Average NMB Bank Plc

Non-Performing Loans 4.3% 3.2%
Return on Asset 2% 4.8%
Return on Equity 13% 28.7%
Cost to Income Ratio 51% 39.0%
Net Interest Margin (NIM) 6% 10.0%
Cost of Funds 3% 2%
Loan-to-Deposit Ratio (LDR) 87% 94.8%
ooking Ahead: The banking sector outlook remains positive, with anticipated sustained growth and
L
enhanced performance. The favourable sector outlook aligns well with the positive operating environment,
the resilience of a well-diversified Tanzania economy, and structural soundness of the sector, especially
the strength of the systemically important banks in the country. The Bank recognizes liquidity challenges
and has put in place key initiatives to address those challenges in order to operate within acceptable
limits.

NMB BANK PLC
Competition
The Tanzanian banking sector continues to be competitive. In this situation, banks aggressively launch
various products to retain customer deposits and provide adequate funding to meet increasing credit
demands.
To secure sturdy growth in our main target segments, we continue to develop best-in-class propositions
and experiences to target robust growth in our key target segments. We focus on deepening the customer
experience and launching new propositions to achieve above-market average growth. In the credit, our
focus remains on maintaining a high portfolio quality and better pricing, considering the competitive
yet subdued market conditions. Our success includes targeting relationship deposits and new current
accounts while remaining cost-effective for term deposits as we optimize our cost of funding.
We expect the credit market to sustain its competitive nature, so we are exploring expanding opportunities
in underserved market segments. We also expect that deposit markets will maintain their competitiveness
as customers continue to seek favourable returns on their funds.
Technology Dynamics
The banking sector, recognizing the transformative potential of technology, has shifted gears to serve
customers with enhanced efficiency and convenience. The evolution from traditional brick-and-mortar
structures to a click-based approach has revolutionized service delivery across various channels.
NMB is strategically aligned to leverage technological advancements, catering to customers’ evolving
demands while maintaining a competitive edge. We are steadfast in our commitment to adopting
emerging technologies and business models that foster growth and drive digital adoption. Investments in
technological and digital capabilities will remain an area of strategic investment focus for the bank in 2024
and for years to come.
The advent of online banking has not only transformed operational methodologies but has also introduced
new risk dimensions. Heavy reliance on technology exposes banks to potential risks, including information
and cybersecurity threats. Unauthorized access or cyberattacks leading to data leakage and confidentiality
breaches pose legal challenges and can inflict severe damage on a bank’s reputation. NMB has proactively
established a comprehensive cyber risk management framework to fortify its network against cyber-
attacks. Since our core business spans physical and online outlets, safeguarding information security
remains paramount. In demonstrating the robustness of our risk management capabilities, NMB has been
recognized as the Safest Bank in Tanzania by Global Business and Finance Magazine (2023).

NMB BANK PLC
SWOC Analysis
Item Description
The Bank boasts a robust brand presence, establishing itself as a leading financial institution.
With a substantial asset size, NMB holds a systematic market position in Tanzania. A commitment
to digitalization and innovation places us at the forefront, facilitating outstanding customer
experiences and fostering growth.
Customer focus, extensive network, operational excellence, and strong governance foundations
Strengths are integral components of NMB’s competitive edge. Our unwavering commitment to customer-
centric practices distinguishes us as the bank that listens and is closer to its customers. With the
largest network of branches and agents, we maintain an extensive footprint.
The Bank has forged strong relationships with diverse stakeholders, including the Government,
and has demonstrated a commitment to Corporate Social Investment (CSI), contributing to
community development.
To further differentiate ourselves, there is a need to enhance our competitive model, focusing on
Weakness
product offerings, customer experience, and pricing strategies.
Amidst a growing and vibrant population, there are significant opportunities to tap into the youth
segment. The underserved segments of women, informal businesses, and SME sectors present
areas for expansion. Exploring the unexploited potential in agriculture value chains can yield
fruitful outcomes. The rural population, remains largely excluded from formal financial services
Opportunities
and this also presents a significant growth opportunity for the bank.
Strategic partnerships with diverse stakeholders will offer a pathway for growth and expedited
execution. There is also an opportunity to position NMB Bank as a pan-African bank, solidifying
its status as a crucial regional player.
The landscape presents challenges in the form of cyber risks, macroeconomic and geopolitical
Challenges uncertainties, climate-related risks, disruptions caused by evolving technology, and market
competition. Addressing and mitigating these challenges will be crucial for sustained success.
Environmental Challenges and Bank’s Climate Actions
According to the Intergovernmental Panel on Climate Change (IPCC), human carbon dioxide and other
greenhouse gas emissions are a primary driver of climate change and present one of the world’s most
pressing challenges. Greenhouse gas emissions have increased since the pre-industrial era, driven
largely by economic and population growth, and are now higher than ever. A changing climate has a range
of potential ecological, physical, and health impacts, including extreme weather events (such as floods,
droughts, storms, and heatwaves), sea-level rise, altered crop growth, and disrupted water systems.
Economic activities produce or result in accelerated climate change by releasing additional CO2 into the
atmosphere. The effects of climate change, in turn, impact the communities and environment in which
corporations operate.
As a vehicle for sustainable socio-economic development in Tanzania, the bank recognizes the impact
of climate change and its role in addressing overall environmental challenges. The Bank is committed to
ensuring lasting prosperity for society and the environment in which the bank operates. By engaging in
the positive transformations of businesses and society, our teams work daily to build, together with our
stakeholders, a better and more sustainable future through responsible and innovative financial solutions.

NMB BANK PLC
Environmental Challenges and Bank’s Climate Actions (Continued)
ur Environment and Social Policy (E&S Policy) and the Climate Risk Policy are critical tools we use to
O
assess and review the risks of our lending activities. The policies provide relevant criteria against which
clients and transactions are screened, as well as excluded sectors that the bank will not finance. The
policy, along with accompanying tools, is applied and embedded into our credit approval process. The
Bank continues to strengthen capabilities to support our overall ambitions and to deploy relevant tools
that enable the bank to consistently measure and monitor our loan portfolios and alignment towards
supportive climate efforts.
Social, Political Context and Prospects
According to the 2022 census, Tanzania’s population stands at around 62 million people, experiencing
a growth rate of 37% since 2012. The country’s demographic makeup reveals a predominantly youthful
population, with over 60% being under the age of 25. From a political standpoint, Tanzania maintains
stability as a unitary republic, featuring both a national government and a decentralized government in
Zanzibar, granting autonomy for non-union matters. The country operates within a multi-party system.
Since independence, the country has undergone impressive political and economic developments and
improvements in social welfare. It remains as a model of political stability within the region.
The overarching policy goals of the current government align with the Tanzania Development Vision 2025
and its corresponding five-year development plans. Looking ahead, the Government is gearing up for
the next phase, Development Vision 2050, which aims to propel the nation toward enduring social and
economic prosperity while adapting to the evolving technological landscape.
In its diplomatic endeavours, the Government actively collaborates with the multilateral and bilateral
development partners. Evidently, the Government prioritizes an export-led-and-inclusive industrialization
and job creation through public and private sector partnership by emphasizing the private sector as a key
driver of broad-based economic growth.
Stakeholders’ Issues and Engagement
takeholders’ engagement formed part of the Board’s extensive agenda in 2023 and 2024 going forward.
S
NMB has a wide range of stakeholders with differing interests. The Board has different mechanisms
to ensure effective engagement with key stakeholders and that the interests of those stakeholders are
considered duly in Board deliberations and informed decision-making processes.
We regularly liaise with other key stakeholders, including the Government, regulators, and policymakers
(at national, regional, and global levels) to share insights and support the development of best practices
across our markets.
As part of our regular engagement with the regulator, we discuss bank-specific and system-wide issues
and use the Tanzania Bankers Association (TBA) platform and other banks to discuss broader banking
systems issues, such as regulations and macro issues.
During the year, the Board continued to engage with stakeholders and was informed about relevant
stakeholder matters through management updates. The Board engaged with or received views from its
key stakeholders during the year are provided below.

NMB BANK PLC
Stakeholders’ Issues and Engagement (Continued)
Table 2: Stakeholders Engagement Summary 2023
Stakeholders And How We Engage Stakeholders Expectations How We Meet Stakeholders’ Expectations Our Efforts In 2023
Customers
• Face-to-face interactions • High quality and seamless • Maintaining the highest professional and • Revamped our Mkononi platform to add more
• Interactions at our branch network. service. ethical standards when dealing with our features.
• Social media and website channels. • Customer privacy and data customers. • Revamped our Agency banking services to bring
• Call centre interactions. protection • Focusing on both the personal and business banking services closer to our customers.
• Customer satisfaction surveys • Strong cyber risk management. financial needs of our customers when • Opened 4 new branches and relocated 2 branches.
• Reasonable service fees. developing our products and services. • Launched NMB Kwetu to suit the needs of Diaspora
• Innovative financial solutions and • Strengthening cyber risk management and Customers.
services. data privacy policy. • Launched NMB Hekima plan to suit the needs of
• Convenient access to banking • Improving our digital banking channels to pensioners.
services through digital chan- enhance seamless accessibility. • Added 2 new deposits accepting automated teller
nels • Ensuring that our people are equipped with machines.
• Knowledgeable employees relevant knowledge on service delivery and • Signed collaboration agreements with government,
• After-service care. committed to giving advice and acting in the trade, and commercial organisations to help facilitate
• Minimal service disruptions. best interests of our customers. the expansion plans of our corporate clients
Community
• University scholarships (Nuru Yangu • Good corporate citizen • Integrating ESG factors into our risk • Providing financing to sustainable projects.
Scholarship). • Inclusive and equal employment framework and credit decision processes. • 62 Scholarships were offered to students through the
• Participate in the Government’s opportunities. • Giving back to the community through Nuru Yangu Scholarship costing 286,559,200.
employment creation initiatives. • Responsible financing. corporate social investment programs • NMB has supported 247 schools with 15,500 desks
• Supporting financial inclusion • Contributing to job creation. focused on Education, Health, and to benefit over 46,500 students and teachers. Also,
initiatives. • Partnership to address social Environment. provided 34 schools with 1,480 double-decker beds
and environmental issues. • Creating an inclusive workforce and work to accommodate 2,960 boarding students.
• Support for communities and environment. • The Bank has embarked on building a modern
access to financing for societal pre-primary school in Makunduchi, South Unguja
needs. Zanzibar.
• The bank allocated TZS 350 million to rehabilitate
and modernise Muhimbili National Hospital’s medical
facilities.

NMB BANK PLC
Employees Stakeholders Expectations How We Meet Stakeholders’ Expectations Our Efforts In 2023
•P eriodic engagement initiatives such • Continuous training and career • Ensuring fair HR policies and processes • Increased basic salary by 5% - 10%.
as SIKIKA platform, BM meetings, development. • Ensuring transparent and objective • Increased the minimum pay for our fixed term
Townhall. • Safe and healthy work environment. performance appraisals and performance- staff.
•H R Support services. • Job satisfaction and recognition. based rewards and recognition. • Increase the training budget by 7.9% for the
•H R policies and procedures. • Competitive benefits. • Providing opportunities for training and career development of our colleagues across
•P eriodic performance reviews. • Trust, respect, and fair employment development to build skills. the network.
• Team building, games, and recreation practices. • Offering health and wellness benefits • Conducted credit attachment programme for
activities. • Safe and healthy work environment. • Ensuring fair and equitable opportunities for all potential Branch Managers.
• Training, seminars, and workshops. • Embracing equity, diversity, and colleagues. • Conducted training to equip RMs with loan
•E mployee annual feedback and inclusiveness. • Promoting teamwork and supporting one syndication, tourism financing and wealth
satisfaction survey. another to achieve shared goals. management skills.
•H R business partnering support. • 3 staff were nominated to take part in the
CEO Apprenticeship Program.
Regulatory Authorities and Government

•R egular meetings. • Strong corporate governance and ethical • Continuous compliance with laws, policies, • Supported Government initiatives on SMEs,
•M andatory filings and reporting with practices. regulations, frameworks, and guidelines. Women business financing, MSEs financing
regulators. • Compliance, including policy formulation • Maintaining a robust risk and control and Agribusiness financing.
•P olicy updates and directives. and enforcement. framework. • Conducted AML/CFT training for all new staff.
•C onsultative meetings with regulators. • Prevention of financial fraud, terrorism • Maintaining strong capital and liquidity levels. • Contributed to Economic development.
• Audited annual reports. financing and money laundering. • Performing regular internal and external audits • Continuous engagement with the bank
•R eport of those charged with • Compliance with tax laws. to check the effectiveness of controls. of Tanzania and other regulatory bodies
governance. •A dhering to the laws of the land. • Regular compliance training for the bank’s including TRA, CMSA, TIRA and BRELA.
• Maintaining financial stability with robust staff.
liquidity and capital adequacy ratios. • Issuing products for SMEs, MSEs,
• Supporting economic development. Agribusiness, Start-ups, and Women.
• Respect for human rights and labour laws.
• Deeper engagement and collaboration on
ESG issues.

NMB BANK PLC
Investment Community Stakeholders Expectations How We Meet Stakeholders’ Our Efforts In 2023
Expectations
• Quarterly financial • Competitive return on investment/ • Ensuring timely disclosure and • Held more meetings with analysts, credit rating agencies and investors to
results publications. Equity reporting share our corporate strategy, financial performance, and macroeconomic
• Annual reports. • Strong corporate governance and • Implementing sustainability and financial performance outlook.
• Annual general meeting. ethical practices. framework. • Paid dividends consistently, (TZS 286.25 per share for 2022 financial year).
• Quarterly Investors • Timely disclosure and compliance • Ensuring robust risk culture, • Enhanced our Investor Relations department to improve engagement with
breakfast. with laws and regulations. governance, and management. shareholders.
• Presentations, • Sustainable growth. • Disciplined execution of the bank’s • Issued a sustainability bond debuted Jamii Bond adding more than 6,000
conferences, meetings, • Strong profitability and well- strategy. new investors.
and roadshows. capitalised. • Ensure a high standard of corporate • Participated in COP-28.
• Periodical meetings with • Strong and resilient balance governance and ethical practices. • Finalized the Sustainability Framework, which will guide our operations
Credit rating agencies. sheet. • Ensuring strong oversight and toward archiving our strategic sustainability goals.
• Responsible banking practices. accountability by the Board and • Conducted training for Board members, Executive management
Executive management team. team, Heads of departments and the entire network with respect to
• Continuous business performance environmental, social, and governance aspects, as well as sustainability.
enhancements.
Suppliers
• Regular vendor • Fair and transparent bidding and • Regular engagement and • The Bank conducted a detailed review of the Procurement Policy and
meetings. selection process. reconciliations of supplier accounts. related Operating Procedures with the support of an independent external
• Purchase contracts. • Timely settlement. • Whistle-blower policy consultant with a view to,
• Request for proposal • Strong Governance and ethical implementation o To align the policy with the bank’s evolving needs
and quotation. conduct. • Timely settlement of vendors’ o To align the Procurement Policy with best practices
• Timely communication and claims. • The revised procurement policy will govern due diligence and contract
settlement of disputes. • Adhering to contract and agreement management process, as well as addressing key topical sustainability
terms. issues including Ethics, Human rights, Diversity & Inclusion and
• Ensuring integrity in all procurement Environmental related considerations.
processes. • Revised Procurement Policy, and it is currently in final draft mode and shall
be tabled in BARCC for review and subsequently to the Board for approval.

NMB BANK PLC
9 BANK’S OBJECTIVE AND STRATEGY
Strategic Objectives
The Bank’s mission that drives its short-term, medium-term, and long-term strategic focus is to be
the bank of choice, delivering an innovative and transformative customer experience that promotes
financial inclusion and well-being. While fulfilling the mission, NMB Bank seeks to maintain its leadership
in financial performance, leading in digital and innovation and keeping a stronghold in the retail and
wholesale markets. The Bank has re-imagined its Medium-Term Plan focusing on three pillars namely
Winning Propositions, Operational Efficiency, and Innovating for the Future. Under each strategic pillar,
there are strategic thrusts to guide the bank’s execution going forward.
Strategic Framework
Banks Objective Strategic Goals 1 Strategic Goals 2 Strategic Goals 3

Deliver Distinctive
Achieve superior Proposition: Develop
results through and implement unique
Strategic delivering value propositions.
key strategic Attract and retain
initiatives. customers through
innovative offerings.
Deliver Solid Returns Drive Efficiency Gains Sustainable Loan
on Shareholders’ Through Improved Book Growth: Achieve
Economic Funds: Maximize Efficiency Ratios: responsible growth in
objectives returns to shareholders. Enhance operational the loan book.
focused on efficiency
Economic financial
performance Optimize utilization Implement measures Identify and tap
and prudent of funds and deploy to reduce costs and into viable lending
management. effective investment improve efficiency opportunities and
strategies. ratios. manage associated
risks.
Accelerate Ongoing Sustain Investments Fast Track Manual to
Operational Digital Transformation in People Through Automation Initiatives:
excellence, Efforts: Propel digital Training: Invest in Streamline operations.
efficiency, and transformation. employee skills.
Operational
adaptability
through strategic Stay at the forefront Foster a skilled and Expedite transition from
initiatives. of technological motivated workforce. manual to automated
advancements. systems.
Responsible Drive Financial Maintain the Employer
Community Inclusion: Expand of Choice Status:
Investments: Contribute access to financial Cultivate a positive
Emphasize social to communities. services. work environment.
Social responsibility and
inclusivity Targeted and impactful Promote economic Provide fulfilling and
social investments. participation in rewarding employee
underserved experience.
communities.
Drive Environmental
Stewardship: Leveraging on
Commitment to By embedding sustainable instruments
Reduce own carbon
Environmental environmental Environmental and to support a range
footprint.
stewardship. Climatic considerations of environmentally
in strategy and impactful projects.
operations.

NMB BANK PLC
9 BANK’S OBJECTIVE AND STRATEGY (CONTINUED)
Implementation of Strategic Objectives
The oversight of the bank’s operations rests with those entrusted with governance. This responsibility
involves vigilant monitoring of Key Performance Indicators (KPIs) established annually and tracked on
a quarterly basis. Management presents comprehensive performance reports during these intervals to
those charged with governance, shedding light on the successful realization of each KPI. These reports
also articulate any challenges encountered within the internal or external environment. In addition, they
outline the requisite support needed to navigate and accomplish the predetermined objectives.
Bank’s Medium-Term Plan (MTP) Strategic Pillars to Drive and Sustain Growth
Winning proposition
• Enhance Mass Customer Loyalty: Continue increasing mass customer base and gaining loyalty. The
Bank has been able to grow its mass customer base by 20% year on year, commanding leadership
in customer base across the industry. This has been possible through enhanced propositions such as
NMB Pesa, Mshiko Fasta and spending to save that add value to our customers.
• Excel in the Core Middle Segment: The Core Middle segment is expected to drive 25% of overall market
growth, with NMB market share estimated at 20%. Leveraging its experience serving government
workers, the bank plans to engage corporates through bundled employer schemes and foster direct
relationships, emphasising digital experiences for customer acquisition.
• Lead in SME (Focus in Agriculture): SME, being the backbone of NMB performance, has recorded
a remarkable loan portfolio growth of 26% YoY, while Agribusiness recorded a growth of 22% YoY,
backed by enhanced customer relationships, value solutions such as the Agri marketplace, and
competitive pricing.
• Deepen Penetration in Wholesale: Wholesale portfolio growth has been well supported by enhanced
customer relationships and well-trained and equipped staff. Capacity building, exposure, and
enhancement of Internet banking have been key agendas in spearheading overall wholesale growth.
The wholesale business recorded loan growth of 87.7% YoY.
Operational efficiency
• Enhance branch productivity: The transaction migration agenda has consistently been successful, with
96% of transactions performed outside physical branches through the bank’s alternative channels.
This has enabled the bank to continue improving its efficiency and overall customer experience.
• Optimize organisational productivity: Strong efficiency gains, with the Cost-to-Income ratio reducing to
39% from 42% in 2022. This resulted from factors such as revenue per FTE improving by 15% YoY,
reaching TZS 385Mln/FTE, driven by increased efficiency by our people in generating revenue.
• Strengthen end-to-end Credit Risk Management: Investments such as Loan Management systems
and enhanced IFRS9 systems are all geared towards improving credit management, and the result is
observed in continuously decreasing the Loan Loss ratio (LLR) to 1.1% by the end of 2023.

NMB BANK PLC
Bank’s Medium-Term Plan Strategic Pillars to Drive and Sustain Growth (Continued)
Innovate for the future.
• The Bank invested TZS 1 billion during the year in Data management to ensure that we have clean,
accurate and reliable data infrastructure to support the overall Bank’s decision-making.
• Exceed customer expectations: 87% of the Bank’s customers are satisfied with the Bank’s services as
per the recent customer satisfaction survey (CSAT) conducted in 2023. The Bank has also achieved
a 59% Net Promoter Score (NPS), indicating a positive outlook towards enhancing overall customer
experience.
• Augment IT infrastructure: Recognizing the critical role of IT infrastructure estate as a vital support
system, the bank is committed to ongoing reviews to keep pace with changes in technology and
business dynamics. While traditional banking systems have been product-oriented, current market
dynamics emphasise real-time processing and visibility across multiple platforms in a customer-
centric approach. The Bank has consistently invested in upgrading IT infrastructure and cybersecurity
hardening to ensure our customers are able to access our services conveniently, reliably, and securely.
Spotlight on the Execution of the Five-Year Strategy MTP
The Bank embarked on a comprehensive five-year business strategy in 2021, spanning until 2025.
This strategic framework centered around three core areas: Delivering Winning Propositions, Driving
Operational Efficiency, and Innovating for the Future. These pillars were strategically aligned with the
Bank’s growth ambitions, considering market challenges and stakeholders’ aspirations.
By 2023, marking the third year of strategy implementation, the bank remained steadfast in pursuing its
strategic aspiration of “customer first, innovative mind, and efficiency at the core.” During this phase, the
bank proactively addressed internal obstacles hampering performance goals and sought to build long-
term business sustainability while placing the customer at the forefront of its endeavors. The overarching
objective was to bring about holistic transformation, ultimately shaping the bank into an institution poised
for the future.
Since the inception of this strategy, the bank has made commendable strides in implementation,
achieving significant gains that position it for sustained growth. The Bank’s progress is evidenced through
a comprehensive financial and non-financial performance evaluation against strategic value drivers from
2021 to 2025.
The Bank’s strategic progress has been marked by noteworthy achievements, including:
- Expanded customer base and transaction channels.
- Increased financial inclusion, accessibility, and penetration through digital channels.
- Efficiency gained through technological enhancements.
- Strong market presence with a household brand
- Reinforced compliance and commitment to good corporate governance
- Enhanced portfolio quality.

NMB BANK PLC
Spotlight on the Execution of the Five-Year Strategy MTP (Continued)
The performance trend of Key Performance Indicators for the Medium-Term Plan Strategy underscores
the Bank’s success in navigating market dynamics and consistently outperforming strategic financial
KPIs. This robust performance is attributed to the meticulous enhancement of balance sheet efficacy,
seamless digital experiences for customers, addressing efficiency and productivity gaps, overhauling
the distribution model, and maximizing strategic partnerships and stakeholder engagement. As the Bank
moves towards the culmination of its strategic journey, it stands as a testament to its commitment to
innovation and sustainable growth.
Those charged with governance oversee the Bank’s operations through quarterly performance reviews.
These reviews highlight key performance indicators (KPIs), identify potential internal and external
challenges, and outline necessary support to attain set goals.
KPI Target Actual 2022 2021 2020 2019
2023 2023
Return on Equity 25% 28.8% 25.5% 22% 19% 15%
Return on Assets 5.0% 4.7% 4.2% 3% 3% 2%
Cost to Income Ratio (CIR) 40% 39.0% 41.7% 46.3% 50.2% 56.9%
Growth in customer deposits 15.0% 11.5% 14.2% 22.1% 10.2% 14.2%
Non-performing loans to total loans 4.0% 3.2% 3.1% 4% 5% 4.8%
Growth in loans and advances to
18.0% 28.1% 29.2% 13.3% 14.5% 10.8%
customers
Growth in total assets 18.0% 18.9% 17.8% 22.9% 8.3% 15.4%
Total Capital Adequacy Ratio 20.0% 23.2% 23.1% 24.6% 20.6% 18.5%
Factors Impacted Our Ability to Create Value
Material Matters Risks to Value Creation Our Response

Potential market share loss Innovate products/services in an
Increasing Competition and revenue pressure due to automated, digitized environment to
competitiveness. sustain competitiveness.
Business landscape evolution via Strengthen partnerships between
Disruptive Technologies &
digital transformation. business and technology for adaptability
Digital Adoption
to changes.
Stakeholder sentiments are Engage stakeholders, incorporate their
Rising Stakeholder impacting reputation and funding expectations into strategic planning, and
Expectations access. adopt transparent value creation through
integrated reporting.
Escalating compliance costs Allocate substantial investments towards
affecting customer expenses and compliance and risk mitigation. Engage
Ongoing Regulatory &
shareholders returns. policymakers for regulatory reforms.
Policy Changes
Foster proactive relationships with
regulators.
-C
yber-attacks disrupting services Maintain robust cybersecurity
and compromising confidential frameworks. Integrate long-term ESG
Current & Emerging Risks information. criteria into business decisions for
sustainable stakeholder benefits.
- Climate change risks.
Our operational landscape is distinctly defined amidst heightened competition, technological disruptions,
evolving consumer trends, and shifts in regulations. The Bank effectively navigates several significant
concerns within the framework of our ongoing strategic, cultural, and digital advancements.
NMB BANK PLC
10 PERFORMANCE FOR THE YEAR
2023 Financial Highlights:
Statement of financial position
Total assets of the bank increased to TZS 12.2 trillion (2022: TZS 10.3 trillion); representing 18.9% growth
year on year.
• The Bank’s net loans and advances grew by TZS 1.7 trillion (28.1%) year on year, driven by an
increase in both Retail (15.9% up year on year) and Wholesale loans (87.8% up year on year) on
account of high credit demand in the economy.
• Government securities increased by TZS 330 billion (17.0%), which is attributed to yield improvement
from 8.6% in 2022 to 9.2% in 2023. Placements and balances with banks increased by TZS 150 billion
(80.1%), while cash and balances with the Bank of Tanzania decreased by TZS 210 billion (-13.6%).
The Asset growth was funded by customer deposits, which grew by TZS 870 billion (11.5%) and net
additional borrowings of TZS 631 billion from FMO and BOT.
• There was a decrease in the Bank’s non-earning assets by 8% year on year, mainly attributable to
a decrease in other assets and right-of-use assets, which decreased on account of depreciation.
Property and Equipment, however, increased by TZS 5.7 billion (3%).
Statement of profit or loss and other comprehensive income
• During the year, the Group recorded a net profit after tax of TZS 545.2 billion (2022: TZS 431.6 billion),
while the bank earned a net profit of TZS 541.8 billion (2022: TZS 429.4 billion), an increase of 26.3%
year-on-year. This increase in profit was attributed to growth in net interest income and net fees and
commission income by TZS 225.9 billion and TZS 50 billion respectively. Strong loan disbursements
drove the increase in Net interest income, while the net fees and commission income were driven by
an increase in customer activity coupled with a significant increase in the Bank’s foreign exchange
dealing income.
• The Bank’s total operating income grew 19.0% year on year to TZS 1.3 trillion (2022: TZS 1.1 trillion).
The growth is from the bank’s net interest income, which increased by 18.7% following growth in loans
and advances, while non-interest income increased by 16.5%, attributed to an increase in transaction
volumes in Agency Banking, Mobile Banking (NMB Mkononi), Card Business, and FX Income.
• The Bank’s operating expenses increased moderately by 10.4% during the year due to cost-efficiency
initiatives deployed by the bank during the year on operating and capital expenditures.
• The Bank’s subsidiary, Upanga Joint Venture Company (UJVC) Limited, made a Profit of TZS 2.3
billion (2022: TZS 1.0 billion). The increase in profit is attributable to a decrease in operating expenses.
As of 31 December 2023, its total assets were TZS 43.1 billion (2022: TZS 40.6 billion). Year-on-year
total assets increased by TZS 2.3 billion.
The audited financial statements and Notes for the year 2023 are set out on pages 272 to 411.

NMB BANK PLC
10 PERFORMANCE FOR THE YEAR (CONTINUED)
CASH FLOW
During the year, the Group used TZS 52 billion (2022 generated: TZS 53 billion) in its operating activities.
This was mainly attributed to the growth of loans and advances to customers by TZS 1.78 trillion (2022:
TZS 1.4 trillion) and the net cash flow used in investments in investing activities was TZS 388 billion
(2022: TZS 248 billion) and cash generated from deposits from customers amounted to TZS 871 billion
(2022: TZS 931 billion) respectively. Bank’s deposits growth reflects industry-wide phenomenon whereby
loans grew faster than deposits. In 2023, banking sector loans grew by 22.8%, while loans grew by
18.6%, indicating negative funding jaws for the industry.
Other major generation of the cash flow was from financing by TZS 441 billion (2022: TZS 150 billion),
while major cash use was mainly in investment in property plant and equipment of TZS 41 billion (2022:
TZS 20 billion) and payment of dividend of TZS 143.1 billion (2022: TZS 96.7 billion).
The Bank’s cash projections indicate that future cash flows will mostly be generated from deposits.
The Bank will continue implementing different strategies to mobilize deposits by targeting individual
depositors, offering competitive rates for fixed deposits, and improving cash collection solutions for
corporate customers, Government institutions, non-Government organizations, and other agencies.
DIVIDEND
As of 31 December 2023, the Bank complied with BOT requirements on dividend payment, specifically
recording a Cost-to-Income Ratio of 39.0% and a Non-Performing Loans ratio of 3.2% against regulatory
requirements of 55% and 5%, respectively. A formal dividend payment proposal considering capital
requirements will be presented in the May 2024 Board meeting. The Annual General Meeting held in
June 2023 approved the Board’s Dividend proposal of TZS 286.25 per share from the total dividend of
TZS 143 billion, which was 1/3 of the profit after tax for the year ended 31 December 2022 in line with the
bank’s dividend payout ratio.
BORROWING

The Bank maintains strong relationships with various Development Finance Institutions (DFIs), who,
through close engagement, continue to demonstrate confidence in the bank by providing us with long-
term facilities in the form of borrowed funds. These funds are used to lend to final beneficiaries to support
overall economic development and the growth of key business segments. As of 31 December 2023, the
Bank’s borrowings balance amounted to TZS 1.4 trillion (2022: TZS 749.6 billion). The Bank complied
with all lender’s covenants as of 31 December 2023 (2022: Compliant).
LIQUIDITY
The Bank’s approach to managing liquidity is to ensure, as far as possible, that it will always have
adequate liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Bank’s reputation. To support adequate levels of
liquidity, the bank has in place arrangements for diversified funding sources in addition to its core deposit
base, manages assets with liquidity in mind, and monitors future cash flows and liquidity daily. The Bank
has developed respective internal control processes and contingency plans for managing liquidity risk.

NMB BANK PLC
LIQUIDITY (Continued)
Within the Bank, the Treasury function maintains a portfolio of short-term liquid assets, largely made up
of short-term liquid investment securities, loans and advances to banks and other inter-bank facilities, to
ensure that sufficient liquidity is maintained within the Bank. The daily liquidity position is monitored, and
regular liquidity stress testing is conducted under a variety of scenarios covering both normal and more
severe market conditions. All liquidity policies are subject to review and approval by the Board.
In 2023, the Bank’s Loans to Deposits Ratio (LDR) increased to 94.8% from 82.4% in the previous
year, hence trending above the bank’s internal LDR limit of 75.0%. However, the bank’s Liquid Asset
Ratio (LAR) improved to 33.2% in 2023 from 26.4% in 2022. This is well above the regulatory minimum
threshold of 20.0%.
The Bank’s LDR position was largely contributed by market wide sharp loan velocity compared to deposits
growth. The Bank continues to monitor the trend of these ratios to ensure they are maintained at healthy
levels.
KEY PERFORMANCE INDICATORS FOR THE BANK
The oversight body actively supervises and sanctions the execution of the Bank’s Key Performance
Indicators (KPIs) aligned with strategic goals. This occurs quarterly through the management’s
presentation of a performance report. This report outlines KPI achievements, potential challenges arising
from internal and external environments, and any support required to attain the established objectives.
In managing these KPIs, the bank follows a structured process:
- Management proposes bank KPIs endorsed by the Board of Directors.
- The CEO cascades these KPIs to senior management, engaging in discussions to ensure effective
implementation.
- Senior management disseminates KPIs to department heads, facilitating the creation of departmental
balanced scorecards that align with the bank KPIs.
- Monthly reviews within each department ensure adherence to set KPIs aligned with the bank’s strategic
objectives. Quarterly reports on these reviews are presented to the Board.
- The Board ensures availability of resources necessary for successful KPI implementation.
- The impact, both positive and negative, on stakeholders due to KPI implementation is assessed to
meet their expectations.
Both financial and non-financial KPIs serve as evaluation tools for those overseeing governance,
allowing an assessment of the bank’s performance vis-à-vis its strategic goals.

NMB BANK PLC
10. PERFORMANCES FOR THE YEAR (CONTINUED)
KEY PERFORMANCE INDICATORS FOR THE BANK (CONTINUED)

The financial KPIs as of December 31st are detailed below.
KPI Formula 2023 2022 Purpose
Return on Equity (ROE) = (Net Profit / Total Equity) * 100% 28.6% 25.5% Measures the Bank's profit generation capability from shareholders' funds.
Return on Assets (ROA) = (Profit Before Tax / Total Assets) * 100% 4.7% 4.2% Evaluate the Bank's efficiency in utilizing assets to generate profit.
Operating Expenses to = Operating Expenses / (Net Interest Income + 39.0% 41.7% Measure operational cost against income generation; how much the bank
Operating Income Ratio (CIR) Non-Interest Income) * 100% spends out of income generated.
Gross Loans to Customer = (Gross Loans to Customers / Total Deposits 94.8% 82.4% Assess bank liquidity by comparing total loans to total deposits.
Deposits Ratio from Customers) * 100%
(Increase in Customer Deposits / Opening 11.5% 14.2% Measure growth in customer deposits from the previous year.
Growth in Customer Deposits Balance of Customer Deposits) * 100%
Non-Performing Loans to (Non-Performing Loans / Gross Loans and 3.2% 3.1% Evaluate the loan portfolio quality.
Total Loans Ratio Advances) * 100%
Growth in Loans and (Increase in Loans and Advances / Opening 28.1% 29.2% Measures the growth of loans and advances to customers from the previous
Advances to Customers Balance of Loans and Advances) * 100% year.
(Increase in Assets for the Year / Total Asset 18.9% 17.8% Assess the growth of total assets from the previous year.
Growth in Total Assets Opening Balance) * 100%
Tier 1 Capital Ratio Core Capital / Risk-Weighted Assets * 100% 23.3% 23.1% Measure the Bank's financial capital position against risk-weighted assets.
Total Capital Ratio Total Capital / Risk-Weighted Assets * 100% 23.3% 23.1% Evaluate supplementary capital position against risk-weighted assets.
Profit attributable to equity shareholders / 1,084 859 Indicate earnings generated per share invested in the bank.
Earnings per Share (EPS) Number of ordinary shares in issue (TZS)
(Interest Income - Interest Expense) / Average 10% 12% Measure the difference between interest income generated and interest paid
Net Interest Margin (NIM) Earning Assets * 100% out.
Interest Expense / Average Interest-Bearing 3% 3% Indicate the cost a bank incurs to gather funds, especially through deposits
Cost of Funds Liabilities * 100% and borrowings.
Loan Impairment Charge / Total Loan Portfolio 1.1% 1.2% Assess the amount set aside to cover potential losses from non-performing
Loan Loss Provision Ratio * 100% loans.
Composition of Low-Cost Deposits vs Higher- 84.8% 84.3% Analyses the distribution of deposits to strategic funding sources.
Deposit Mix Cost Deposits
(Number of Customers at the End - New 118% 120% Gauge customer satisfaction and loyalty.
Customer Retention Rate Customers) / Number of Customers at the
Start
During the year, there were no changes to either KPIs or the methodologies that needed to be disclosed in the underlying accounting policies adopted in the financial
statements compared to previous financial years. The Bank KPI targets for 2023 are disclosed in note 23 of those charged with governance report.

NMB BANK PLC
KEY PERFORMANCE INDICATORS FOR THE BANK (CONTINUED)
Table 5: Performance of Non-Financial KPIs
Description in (Million) 2023 2022 YoY

NMB Mkononi (USSD & App)
Volume of transaction 133.8 83.2 60.8%
Number of registered accounts 4.95 4.68 5.8%
Internet Banking
Volume of transaction 6 5 20%
Number of registered accounts 0.042 0.025 68.0%
Agency Banking
Number of registered agents 0.028 0.020 40.0%
ATMs
DEVELOPMENT FOCUS
In 2024, the Bank’s focus remains on sustaining growth and driving revenue momentum. The objective
is to achieve broad-based optimal balance sheet growth and deepen customer relations, contributing
to further revenue growth. The Bank’s strategy, although largely unchanged, will explore new growth
frontiers such as mass account opening, rural banking, bancassurance and digital transactions, presenting
animating opportunities for revenue growth. Additionally, the Bank will maintain its focus on cost discipline,
efficiency, productivity, and portfolio quality, which are areas of distinguished advantage.
The overall macro and business environment outlook remains favourable, further supporting the bank’s
growth optimism. Nonetheless, the Bank remains vigilant of emerging risks and prioritizes greater risk
management and policies to safeguard its business from any potential risks on the horizon. Furthermore,
the Bank will continue to prioritize investments in people, technology, and governance, recognizing
their importance in driving growth. Specifically, the Bank will concentrate on process optimization and
digital investment initiatives which will contribute to the bank’s continued quality growth, particularly in
agribusiness and SME businesses.
Investment in Capital Expenditure in 2024
In 2024, the Bank committed to investing in capital expenditures of approximately TZS 62 billion (excluding
Core banking System-related costs), an increase from TZS 45 billion in 2022. These investments will be
made in establishing new branches, remodeling existing branches, acquiring equipment, and enhancing
information technology.

NMB BANK PLC
10 PERFORMANCES FOR THE YEAR (CONTINUED)
DEVELOPMENT FOCUS (CONTINUED)
Key Trends Impacting Future Development Plans in Banking
The banking industry is undergoing transformative shifts driven by increasing competition, embedded
finance, evolving customer expectations, regulatory dynamics, and disruptive technologies. FinTech
and non-bank startups are reshaping the competitive landscape, prompting traditional institutions to
reconsider their business strategies. Below is a summary of the challenges facing the banking sector and
how NMB is addressing them in order to thrive in this new environment.
• Continuous Innovation: To succeed in the current fast-evolving landscape, banks are required to
embrace innovations that meet customer demands and enhance the overall experience. Investments
in advanced analytics, risk control, and overall digital transformation are also critical in sustaining
the bank’s long-term existence. At NMB, innovation is not only a strategic focus but also one of our
core Values. We continue to innovate in areas of competitive advantage, including overall customer
experience, operational efficiency, analytics, and risk management. The progress we have made in the
innovation space has received domestic and international recognition (see note 22 of Those charged
with Governance Report).
• Emerging Risk - Climate Change: Climate change emerges as a significant risk, impacting the
economy. The bank must assess its effects on strategy and operations while assisting customers and
societies in navigating the complexities of a transitioning market towards a low-carbon economy.
• Increased Competition: Intense competition from digital solutions and embedded finance targeting
lucrative segments is expected to divert revenue from traditional banks. Banks must explore
partnerships and acquisitions to stay competitive while prioritising a streamlined customer experience.
We continue to explore opportunities for inorganic growth whilst continuously leveraging on strategic
partnerships which seek to generate shared value.
• Technology Shift: Manual processes are becoming obsolete in the digital era. Banks must adopt
technology-driven solutions to optimise efficiency. Establishing a culture of innovation is crucial for
leveraging technology to address industry challenges. We continue to invest in our technological
infrastructure, systems, and people to shape our organisation for the fast-evolving digital world.
• Regulatory Compliance: The evolving regulatory landscape poses challenges, requiring banks to incur
additional costs to stay compliant. Overcoming these challenges necessitates fostering a culture of
compliance, implementing formal structures, and staying abreast of regulatory changes.
•
Evolving Customer Expectations: Informed and tech-savvy customers expect personalised and
convenient banking experiences. Millennials prefer digitised interactions, emphasising the need for a
hybrid banking model catering to both older and younger generations. We continuously engage our
customers to identify their needs, and we respond to them through ongoing investments in relevant
products and solutions.

NMB BANK PLC
11 PRINCIPAL RISKS AND UNCERTAINTIES
The Bank faces a variety of risks that can impact its short-to-medium-term strategy, including Credit,
Operational, Compliance, Information and Communication Technology (ICT), Market, Liquidity, Strategic,
and Reputational risk.
Risk Management Principles and Internal Controls
NMB emphasizes effective risk management principles to align with its objectives. This involves a
continuous review of processes and integrated risk management structures at both operational and
strategic levels. Decision-makers rely on proactive risk management to make informed choices and
address uncertainties. The framework recognizes the role of human and cultural factors, emphasizing
stakeholder engagement throughout the risk management process. The Bank actively takes risks within
defined appetite and tolerance levels, considering regulatory requirements. Risk management is a core
function, with policies and procedures ensuring alignment with best practices.
The overall risk management responsibility lies with those charged with governance (Board). The Board
sets the tone, approves strategies and risk management framework, oversees risk management, and
regularly monitors the risk profile. The senior management team facilitates framework development and
ensures compliance with the policies, laws, and regulations. The focus is on establishing effective internal
controls and maintaining a dynamic approach to identify and address emerging risks.
Operating Environment: Navigating Uncertainties
In our operating setting, unforeseen circumstances create unpredictable uncertainties, posing a risk of
negative economic events. NMB employs a robust risk management process with deployed tools to
address these uncertainties proactively.
The Bank diligently monitors the economic landscape, adapting processes and systems to navigate
changes while ensuring customer protection through enhanced value propositions and strategic
contingencies.
We believe proactive risk prevention adds shareholder value by optimizing earnings, ensuring stability,
and protecting against unexpected losses. Our risk management processes aim to safeguard the bank’s
solvency through high asset quality, efficient operations, and prudent capital management, resulting in
sustained earnings, regulatory compliance, and enhanced market reputation.
TYPES OF RISK
Operational risk
Operational risk arises from inadequate or failed internal processes, people, or systems and external
events, including legal risks. It encompasses a wide range of potential incidents, such as fraud, human
error, technology failures, and natural disasters.
Fraud Risk: A subset of operational risk, both internal and external, is mitigated by stringent controls,
including preventive and detective measures such as a code of ethics and business conduct, policies,
and processes to address fraud incidents.

NMB BANK PLC
11 PRINCIPAL RISKS AND UNCERTAINTIES (CONTINUED)
TYPES OF RISK (CONTINUED)
Operational risk (Continued)
Risk Management Approach:
The Bank implements various measures to mitigate operational risk as part of its Enterprise Risk
Management (ERM) framework:
• People: Code of ethics and business conduct guide staff behaviour and ensure the right skills and
resources are available.
• Processes: Internal policies and procedures, Risk and Control Self Assessments (RCSA), and regular
control evaluations are conducted. Management committees, including the Risk and Compliance
Committee (RCC), discuss risk events and mitigating measures.
• Systems: Investment in new technology platforms improves risk reporting, aggregation, and visibility.
The adoption of international best practices guides the protection of information assets.
Compliance risk
Compliance risk is the current or prospective risk to earnings, capital, and reputation arising from violations
or non-compliance with laws, rules, regulations, agreements, prescribed practices, ethical standards, and
incorrect interpretation of relevant laws or regulations. NMB is exposed to Compliance risk due to its
relations with multiple stakeholders, such as regulators, customers, tax authorities, and other authorized
agencies.
Risk Management Approach: Managed within the bank’s Enterprise Risk Management (ERM) framework,
compliance risk is supported by various policies and procedures aligned with relevant standards and
industry best practices. The Bank ensures regulatory monitoring and assurance reviews to ensure
continuous compliance with internal policies, procedures, guidelines, and regulatory requirements.
NMB uses a range of tools and processes to ensure effective management of Compliance risks.
The Bank adequately oversees the Compliance risks at Senior Management and Board levels. Compliance
risks and issues are escalated and deliberated on in various committees such as the management Risk
and Compliance Committee (RCC), Executive Committee, and Board Audit, and Risk and Compliance
Committee (BARCC).

NMB BANK PLC
TYPE OF RISK (CONTINUED)
Credit risk
This is the risk resulting from the possibility that an asset in the form of a monetary claim against a
counterparty may not result in a cash receipt (or equivalent) as per the terms of the contract. The Bank
has robust controls to manage exposure to credit risk, including intensive appraisal, approval process,
disbursement controls, continuous monitoring, collection and recovery, and a robust risk appetite
statement.
Responsible lending is critical to a well-functioning bank. This means considering each customer’s long-
term financing needs, ability to repay and resilience. A range of tools and measures are used to manage
credit risk within the approved risk appetite.
From a governance perspective, the apex credit decision-making committee is the Board of Directors,
which works through the Board Credit Committee and other Management committees, including the
Wholesale Credit Committee, Retail Credit Committee, Loan Portfolio Quality (LPQ) Committee, and
Watchlist and Special Assets Management (SAM) Committee to review credit applications, loan-related
controls, as well as loan portfolio quality. The BARCC reviews compliance with the credit risk appetite
on a quarterly basis. Branches also have some discretion to autonomously approve certain credits up
to closely monitored internal limits. Stress testing is regularly done to monitor the bank’s liquidity and
solvency risks, incorporating stress scenarios for all key risk factors (liquidity, solvency, market, credit,
operational risk, as well as a black swan combined stress scenario), with measures to deal with all stress
outcomes ranging from mild to severe in place.
ICT risk
ICT risk is associated with the use of Information and Communication Technology to support business
processes/standards. It results from inadequate or failed ICT Strategy, ICT Project and Program, or ICT
Operations. The Bank has robust checks in place to limit its exposure to ICT risk and performs regular
monitoring to validate the efficacy of its ICT risk controls.
The Information Technology Risk Management Policy governs the protection of the bank’s information
assets from all threats, whether internal or external, deliberate or accidental, to ensure business
continuity, minimize business damage and maximize return on investments and business opportunities.
The policy’s objective is to protect the bank, its staff, customers, and other third parties from information
risks that have significant likelihoods of occurrence and consequences. The policy also stipulates key
risk management principles with respect to managing IT Risk across the bank, including continuous
assessment and monitoring that is done using key risk indicators, risk and control self-assessments, and
other reviews performed by the second and third line of defence.

NMB BANK PLC
TYPE OF RISK (CONTINUED)
Market risk
Market risk is the risk of losses in on- and off-balance sheet positions caused by adverse changes in
market prices, such as interest rates, foreign exchange rates, equity prices, and commodity prices. Market
risk exists in both trading and banking books. A trading book consists of positions in financial instruments
and commodities held either with trading intent or to hedge other elements of the trading book.
Market risk at NMB is overseen day-to-day by the Market Risk Team in close collaboration with the
Treasury team. Several tools are used to control this risk, e.g., system limits, dealer mandates, etc. There
is also close monitoring and tracking of market risk issues in the monthly Asset and Liability Committee
(ALCO) and other key Management Committees.
Stress testing is used to monitor market risks. Four comprehensive rounds of stress testing were
performed in 2023, incorporating stress scenarios for all key risk factors (liquidity, solvency, market,
credit, operational risk, and a black swan combined stress scenario).
Liquidity risk
The risk of having insufficient stable or diverse sources of funding to meet financial obligations as they fall
due, without raising funds at unfavourable rates or resorting to distressed sale of assets or central bank
support.
Liquidity risk at NMB is overseen day-to-day by the Treasury function in close consultation with the Market
Risk team. The bank has deployed various tools to manage this risk, including system limits and dealer
mandates. Liquidity risk issues are closely monitored and tracked via the monthly Asset and Liability
Committee (ALCO) forum.
Stress testing is another tool used to monitor the bank’s liquidity risks. It incorporates stress scenarios for
all key risk factors (liquidity, solvency, market, credit, operational risk, and a black swan combined stress
scenario).
Strategic risk
Strategic risks are the possible losses a business may incur based on decisions made at the strategic level.
These include failures in business strategy or a business plan as they relate to either internal or external
forces. Internal events that could cause the failure of a business strategy include poor communication,
low cash flow, poor execution of stated initiatives, or a change in senior management. External events,
such as changes in consumer demand, new technologies, and new market entrants, can also undermine
a business’s ability to meet its core strategic objectives.

NMB BANK PLC
TYPES OF RISK (CONTINUED)
Strategic risk (Continued)
The Bank is focused on executing the Medium-Term Plan. Key risks associated with our long-term growth
aspirations have been identified, and periodic reviews and measurements are performed to provide
assurance.
Reputational risk
The risk is that an activity, action, or stance taken by the bank’s officials will impair its image in the
community and/or the long-term trust placed in the bank by its stakeholders, resulting in the loss of
business or legal actions against the bank. The Bank has stringent reputation risk controls, including very
tight controls on corporate communications and messaging.
The Bank proactively seeks to enhance its overall reputation and manages potential reputational risks
in line with its overall control framework. Reputational risk is monitored and managed through a review
of respective incident reports and assessments, risk and control assessments pertaining to the first and
second lines of defence functions, as well as results of respective surveys covering the bank’s overall
brand health and their respective action plans.

NMB BANK PLC

Risk Register
Principal Risk Cause/ Circumstance Key Risk Indicators (KRI) Likelihood Magnitude/ Impact Opportunities and Mitigations
Operational Potential incidents include fraud, Losses due to operational High Severe - could lead to Code of ethics, business conduct, talent
Risk human error, technology and risk events, number of financial loss, reputational management strategies, and international best
process failures, and natural fraud incidences and damage, and operational practices for safe processes, systems, and
disasters. losses. disruptions. assets.
Compliance Non-compliance with laws/ Late submission of returns/ High Severe - could result in Daily monitoring of regulatory changes,
Risk regulations, incorrect payments, fines, and financial losses (penalties staff awareness, conformance tests, and
interpretations, late submissions, penalties. and fines) and reputational engagement with policymakers to resolve
fines, and penalties. damage. jurisdictional contradictions.
Credit Risk Changes in borrowers' Significant increases in High Severe - increases All credit facilities are insured, thorough
environment or business credit risk and default. impairment losses affecting assessment from origination to recovery, and
activities, including borrower profitability and liquidity. continuous monitoring.
death or bankruptcy.
Market Risk Adverse market rate/price Adverse movements in High Severe - impacts Matching sensitivity of assets/liabilities,
movements include interest interest rates, forex, and profitability. diversification of funding sources, and closely
rates, forex, and equity prices. equity prices. monitoring equity price movements.
Breach of market risk

limits.
Liquidity Risk Insufficient cash/cash Decrease in liquidity ratio High Severe - may lead to fines Daily monitoring and adherence to liquidity
equivalents due to mismatches below regulatory and i.e. liquidity ratios, failure limits, diversification of funding sources, and
between loans/deposits or internal limit. to meet obligations, and close tracking of cash flow patterns.
asset/liability maturities, and operational disruptions.
decreased money supply.
Strategic Failures in strategic decisions, Identified through strategic Medium Moderate - may hinder long- Scenario planning, robust risk assessments,
Risk changes in consumer demand, reviews and assessments. term growth objectives. and strategic initiatives aligned with
new technologies, and market w organizational objectives.
ICT Risk Insufficient or unsuccessful ICT Business interruptions High Severe - could lead to Implementing robust ICT governance
Strategy, and ICT Operations. frequencies, malware operational disruptions and framework, regular security assessments,
presence, unpatched and data breaches and adherence to best practices in ICT
misconfigured systems. management.
Reputational Negative publicity following Media coverage, customer Low High - could damage brand Proactive communication strategies, crisis
Risk operational failures, compliance complaints, social media reputation and customer management plans, and focus on delivering
breaches, or customer sentiment. trust. exceptional customer service.
dissatisfaction.

NMB BANK PLC
CLIMATE-RELATED RISKS
General classification of climate-related risks
The Bank recognizes climate change as one of our planet’s most significant risks. Climate risk is central
to our sustainability agenda at NMB as we look to limit the impacts that result from the transitional or
physical effects of climate change. We continue to work on the measures required to address climate
change, to mitigate our operations’ impact on climate and a transition towards lower-carbon operations
and products.
Climate-related risks have potential negative impacts on the bank’s business and community at large.
The Bank may be exposed to physical risks (risks that arise from severe or acute climatic events and
longer-term shifts in climate patterns) and transition risks (risks that arise from measures taken to mitigate
the effects of climate change and transition to a low-carbon economy).
The Bank has enhanced its Environmental and Social Policy (E&S) framework to address climate-
related risk. The Bank’s Enterprise Risk Management Framework for risk identification, mitigation, and
reporting (including socio-environmental) identifies risk elements and assigns overall mitigation and risk
management responsibilities within the bank. The E&S Policy provides guidance to ensure that climate-
related factors are given due consideration in lending decision-making and clearly articulates mitigants
to address identified climate-related risks. In addition, the policy provides relevant criteria against which
clients and transactions are screened, as well as excluded sectors that the bank will not finance.
So far, the Bank has established a dedicated unit within the credit department to manage Environmental
and Social Risks associated with lending operations.
The Bank continues to strengthen capabilities to support our overall ambitions and deploy relevant tools
that enable the bank to consistently measure and monitor our portfolios and alignment towards supportive
climate efforts. The Bank aims to adopt relevant, applicable standards wherever possible to allow for
compatibility and efficiency across industry peers as much as possible.
Climate Risk Review
Our risk processes enable us to take account of the potential wider implications of our business activities
and products and services on the environment and society.
To assess risks to the environment, to people and to society, NMB pursues a risk-based approach. The
current focus is on lending, capital markets and advisory transactions where NMB plays a significant
role, as opposed to flow trading business, which is more dynamic in nature. Certain industry sectors,
client operations or projects, or financial services have been identified as carrying higher risks and are
prioritized for due diligence.

NMB BANK PLC
CLIMATE-RELATED RISKS (CONTINUED)
Exposures to Carbon-Related and Climate-Sensitive Sectors
On this basis, we have identified the client sectors in our portfolio that we believe face the most elevated
exposure to climate risk or present the most significant potential for climate-related opportunities. As a
starting point, we have identified the following sectors:
• Agriculture
• Building and Construction
• Electricity, Oil, and gas
• Manufacturing
• Transport and Communication
Bank’s exposure to identified sectors with elevated levels of climate risk on both its On-Balance and Off-
Balance loan book portfolios.

NMB BANK PLC
CLIMATE-RELATED RISKS (CONTINUED)
Exposures to Carbon-Related and Climate-Sensitive Sectors (Continued)
Sector Loan %
Contribution Climate-Related Risk
to Gross Loan
Amount
"The Network for Greening the Financial System (NGFS) Net Zero 2050
scenario projects an 80% increase in agricultural demand in Africa by 2050.
Despite its contribution to climate change, agriculture is essential to the
Agriculture 8.6%
economy, accounting for over 20% of the GDP, ensuring food security, and
employing over 65% of the population. This underscores the urgent need for
a transition to a sustainable economy to mitigate climate risks."
As the nation progresses, the rate at which buildings and infrastructure
are being constructed also accelerates. According to research
conducted by McKinsey, the construction value chain is directly or
indirectly responsible for nearly 40% of global CO2 emissions from
fuel combustion and 35% of overall greenhouse gas (GHG) emissions.
Building and Cement, the most used construction material worldwide, plays a significant
6.6%
Construction role in contributing to climate change. The chemical and thermal combustion
processes involved in cement production are a major source of carbon
dioxide (CO2) emissions. Annually, over 4 billion tons of cement material are
manufactured, accounting for approximately 8% of global CO2 emissions.
https://www.chathamhouse.org/2018/06/making-concrete-change-
innovation-low-carbon-cement-and-concrete
Energy Sector: The NGFS Net Zero 2050 scenario shows oil & gas demand in Africa
continuing to rise to 2050. Development of Africa’s gas reserves will help
to balance economic development and social upliftment with emissions
Electricity 3.1% reduction, by facilitating the switch from higher emitting energy sources such
as wood and coal, to lower- carbon fuels.
Oil & Gas 6.6%
However, we have identified the energy sector as a sector with elevated
levels of climate risk. The combustion of coal, oil, and natural gas represents
89% of global CO2 emissions.
PBL, Netherlands Environmental Assessment Agency. ‘Trends in global CO2

and total GHG emissions:2020 report’.
While the manufacturing and production sectors are key drivers for economic
growth, comprising 16% of global GDP, activity from these sectors also
poses serious environmental risks. Manufacturing activities generate direct
emissions resulting from diverse processes, including the on-site combustion
of fossil fuels for heat and power, non-energy use of fossil fuels, and
chemical processes used in iron, steel, and cement production. In addition,
manufacturing generates indirect emissions from the centrally generated
Manufacturing 9.3% electricity it consumes.
We have identified the sector as having elevated levels of climate risk, with
global manufacturing and production centers responsible for one-fifth of
carbon emissions according to recent publications.
World Economic Forum: Reducing the carbon footprint of the manufacturing

industry through data sharing.
The transport and logistics sectors are pivotal for both the economy and
Transport and society. It is, however, a sector that has elevated levels of climate risk, with a
2.1%
Communication relatively large carbon footprint and approximately 24% of global emissions.
(International Energy Agency)

NMB BANK PLC
RISK MANAGEMENT AND INTERNAL CONTROL
The Board accepts final responsibility for the bank’s risk management and internal control systems.
It is a responsibility of the Board through delegation to senior management to ensure that adequate
internal financial and operational control systems are developed and maintained on an ongoing basis
to provide reasonable assurance regarding:
• The effectiveness and efficiency of operations.
• The safeguarding of the bank’s assets.
• Compliance with applicable laws and regulations.
• The reliability of accounting records.
• Business sustainability under normal as well as adverse conditions; and
• Responsible behaviours towards all stakeholders.
The efficiency of any internal control system is dependent on the strict observance of prescribed
measures. There is always a risk of non-compliance with such measures by staff. Whilst no system of
internal control can provide absolute assurance against misstatement or losses, the bank’s system is
designed to provide the Board with reasonable assurance that the procedures in place are operating
effectively.
The Board carries out risk and internal control assessment through the Board Audit, Risk and
Compliance Committee. The Board assessed the internal control systems throughout the fiscal year
ended 31 December 2023 and is of the opinion that they met the accepted criteria.
12 TREASURY POLICY
The Bank maintains a well-documented treasury that articulates how various risks arising from
dealings, together with other banking activities, are identified, measured, and managed. These,
among others, include liquidity risk, foreign exchange risk and interest rate risk.
Regulatory ratios and internal limits on the above-stated risks are stipulated in the policy to enable
efficient monitoring of compliance. Moreover, to combat any losses that may result from dealing
activities, the policy allows for the establishment of dealer limits, counterparty limits and stop-loss
limits that are reviewed regularly and kept up to date. The policy also assigns responsibilities for
specific roles, including Treasury staff, the Market Risk unit, the Executive Committee, and members
of the Assets and Liabilities Committee (ALCO).
The Asset and Liabilities Management (ALM) team, in collaboration with the Market risk unit,
provides monthly reports to ALCO to confirm compliance with the policy requirements. From a risk
and governance perspective, the second and third lines of defense are tasked with the governance
responsibility of ensuring bank’s compliance with Policy guidelines. Operationally, any incident where
a guideline has been breached is reported by the treasury functions to the Treasurer, who then
escalates the breach to ALCO members and bank Management for immediate action. The following
sections are covered in the Treasury policy:

NMB BANK PLC
12 TREASURY POLICY (CONTINUED)
(i) Liquidity Management
Liquidity management evaluates the bank’s ability to meet its commitments as they fall due whilst
maintaining confidence in the market to be able to replace funds when they are withdrawn.
The Bank’s sound and robust liquidity management process, as carried out within the bank and
monitored by ALCO, encompasses the following:
• Day-to-day funding is managed by monitoring future cash flows to ensure that daily obligations
can be met. This includes replenishment of funds as they mature or are borrowed by customers.
The Bank maintains an active presence in money markets to enable this to happen.
• Maintaining a portfolio of highly liquid and marketable securities that can easily be liquidated as
protection against any unforeseen interruption to cash flows.
• Monitoring balance sheet liquidity ratios, i.e., Liquid Asset Ratio (LAR), Loan Deposit Ratio
(LDR) and Long-term Funding Ratio (LTFR) against internal and regulatory requirements.
• Managing the concentration and profile of debt maturities.
• Diversification of depositor base.
• Performing liquidity stress and scenario tests; and
• Maintaining a robust and effective contingency funding plan.
(ii) Foreign Exchange Risk Management
Foreign exchange risk is a current or prospective exposure to earnings and capital arising from
adverse movement in the currency exchange rate. The Treasury policy mainly focuses on foreign
exchange risk that arises from trading activities whose management principles are as outlined below:
• Identification of foreign exchange risks in the trading and banking book.
• Risk appetite specification in the form of limits and triggers.
• Breach management.
• Price validation and profit recognition.
• Sign off positions and profit or loss.
The policy further outlines the roles and responsibilities of ALCO, the Market risk unit and foreign
exchange traders in managing this risk for the bank.
(iii) Interest Rate Risk Management
Interest rate risk is the risk that arises from mismatches between the re-pricing dates on interest rate-
sensitive assets and liabilities in the normal course of business activities. Treasury policy explains
the types of interest rate risk together with methods for measuring and managing it. The policy
additionally outlines the roles and responsibilities of ALCO and Treasury in their involvement with
managing the risk. All these are disclosed both internally via reports to ALCO (monthly) and to the
Board Audit Risk and Compliance Committee (BARCC) every quarter and publicly through annual
financial reports.

NMB BANK PLC
12 TREASURY POLICY (CONTINUED)
(iii) Interest Rate Risk Management (Continued)
In addition to liquidity management, the bank manages its interest expenses through regular review
of the fixed deposit rates and other savings account rates, as well as striving to obtain reasonable
and fair borrowing rates from the interbank and multilateral lenders.
All borrowings have been disclosed under notes 35 to the financial statements. Interest rate sensitivity
analysis is disclosed under note 9.2.2.
(iv) Contingency Funding Plan
Treasury policy puts together a contingency funding plan that is aimed at providing a framework
within which an effective plan of action can be put in place in response to an adverse liquidity event.
The plan stipulates:
• The points that will trigger the implementation of the plan.
• Roles and responsibilities of management.
• Team members identified during impending crisis likely to happen in the near term (phase 1)
situation and crisis likely to lead into default within next to 48 hours (phase 2); and
• an updated communication channel during the liquidity crisis.
13 CAPITAL STRUCTURE AND FUNDING MIX
CAPITAL STRUCTURE
The Bank’s capital structure for the year under review is disclosed in note 37 of the financial statements.
The Banks capital structure for the year under review is as follows:
- Authorized: 625,000,000 ordinary shares of TZS 40 each.

- Issued and fully paid: 500,000,000 ordinary shares of TZS 40 each.
The capital structure remained consistent with the preceding financial year, indicating stability. The
Bank has maintained a robust capital structure that strikes the right balance between debt and equity
financing providing sufficient funds for growth while minimizing the cost of capital and financial risk. The
conclusion of the fiscal year revealed that a capital ratio stood at 23.25% for Tier 1 and 23.26% for Total
Capital, which is well above the regulatory threshold of 12.5% and 14.5%, respectively. The Bank has
robust strategies in place to continue upholding the solid capital position to support growth ambition and
regulatory compliance. More details are shared under note37 in the financial statements.
FUNDING MIX
The Bank’s primary source of funding during the year was deposits from customers, with focus on current
accounts and savings accounts (CASA), including demand deposits, savings deposits, and time/ fixed
deposits, as sources of funds to finance lending to customers.

NMB BANK PLC
13 CAPITAL STRUCTURE AND FUNDING MIX (CONTINUED)
FUNDING MIX (Continued)
The balance between debt and equity was as follows;
Group Bank
Figures in TZS' Million 2023 2022 2023 2022
Equity
Issued Capital 20,000 20,000 20,000 20,000
Retained Earnings 2,066,586 1,664,821 2,062,118 1,663,475
Other Reserves 1,550 1,086 1,550 1,086
Non-Controlling interest 4,441 4,123 - -
Total 2,092,577 1,690,030 2,083,668 1,684,561
Debt
Customer Deposits 8,465,608 7,594,832 8,474,678 7,600,147
Borrowings - Current 333,496 295,440 333,496 295,440
Borrowings - Non-Current 1,046,697 453,914 1,046,697 453,914
Total 9,845,801 8,344,186 9,854,871 8,349,501
Through our wide branch distribution network, enhanced customer propositions, and solid financial
footing, we were able to attract and mobilize a good mix of deposits to support our business growth
ambitions. Customer deposits grew by 11.5% year on year to TZS 8.4 trillion as of December 2023, with
the majority being comprised of low-cost deposits. CASA commands 84.8% of the bank’s total funding,
with the funding mix remaining broadly similar on a year-on-year basis.
Funding Strategy:
Customer deposits serve as the primary and principal source of funding for the bank. This funding
approach prioritizes a diversified and stable funding base, encompassing current/demand, savings, and
time deposits. Ensuring the stability of these deposits is imperative for the bank, which can be achieved
through robust retail banking activities and fostering depositor confidence in the bank’s business strategies
and financial resilience.
To address short-term liquidity needs, the bank engages in borrowing from the interbank market through
transactions with other banks. As part of the contingency funding plan, the bank has established funding
lines with both local and foreign banks, providing flexibility for short-term funding requirements. This
strategy effectively enhances the bank’s adaptability to different liquidity scenarios.
MAJOR FINANCING TRANSACTIONS
During the year, the Bank obtained additional unsecured borrowing totaling TZS 400 billion through
issuance of three-year Jamii Bond at an interest of 9.5% per annum. The bond was issued in two tranches,
USD amounting to 73 million and TZS amounting to 212.9 billion. The proceeds from these borrowings
will be deployed to facilitate lending to eligible green and social projects.

NMB BANK PLC
13 CAPITAL STRUCTURE AND FUNDING MIX (CONTINUED)
FUNDING MIX (CONTINUED)

Borrowings as of 31 Dec 2023 TZS bn
Bond issuance 471
Borrowings from Abroad 721
BOT- Borrowings 158
TMRC-Borrowings 17
Accrued interest 14
Total 1,381
SOLVENCY
Solvency risk is the risk of insufficient capital available in relation to the amount of capital required to
carry out the NMB’s strategy and to satisfy regulatory capital adequacy requirements. Solvency risk is
monitored and overseen by ALCO and other key Management Committees. The Bank continues to be
adequately capitalized.
Stress Testing:
In adherence to the Bank’s policy, the assessment of liquidity position involves a thorough examination
across various scenarios, with careful consideration given to stress factors affecting both the market
at large and, specifically, the bank. Stress-testing serves as a valuable tool for monitoring the bank’s
solvency risks. In 2023, the Bank conducted four comprehensive rounds of stress-testing, encompassing
stress scenarios for key risk factors such as liquidity, solvency, market conditions, credit, operational risk,
and a combined black swan stress scenario. Stress tests results indicate that the bank remains resilient
against different scenarios, albeit notable challenges under certain extreme scenarios with low likelihood
of occurrence.
Furthermore, stress testing evaluates the impact of a combination of market and specific stress factors
pertinent to the bank. The liquidity mismatch reporting and stress testing results undergo regular reporting
and review processes by the Asset and Liability Committee (ALCO), Executive Committee, and Board
Risk Committee. This thorough evaluation ensures a proactive approach to identifying and mitigating
potential risks, contributing to the bank’s overall risk management framework.
Going Concern:
Those charged with governance confirm that applicable accounting standards have been followed and
that the financial statements have been prepared on a going-concern basis. The Board of Directors has
a reasonable expectation that the bank has adequate resources to continue in operational existence for
the foreseeable future.
14 STOCK EXCHANGE INFORMATION, SHAREHOLDERS INFORMATION
NMB Bank Plc is a listed public company under the ticker symbol NMB. NMB Bank PLC is licensed under
the Capital Markets and Securities Act, 1994 to be traded in the Dar Es Salaam Stock Exchange. NMB
Bank Plc. share registration is ISIN: TZ1996100222.

NMB BANK PLC
14 STOCK EXCHANGE INFORMATION, SHAREHOLDERS INFORMATION (CONTINUED)
SHAREHOLDERS OF THE BANK
The total number of shareholders as of 31 December 2023 was 17,014 (2022: 17,078). None of the
Directors holds a significant number of NMB shares.
The following is a Shareholding structure of NMB Bank Plc.
Major Shareholders (Above 10% Shareholding)
Investor type No. of shares held %

Arise B.V. 174,500,000 34.90%
The Treasury Registrar 158,901,800 31.78%
(Government of United
Republic of Tanzania)
Grand Total 333,401,800 66.68%
Shareholders by Categories:
Category No. of % No. of No. of % No. of

shareholders shareholders shares held shares held
Tanzania Retail Investors 16,803 98.76% 42,484,751 8.50%
Tanzania Permanent Residents 6 0.04% 29,580,048 5.92%
Tanzania Institutional Investors 162 0.95% 209,279,557 41.86%
Foreign Retail Investors 28 0.16% 319,937 0.06%
Foreign Institutional Investors 15 0.09% 218,335,707 43.67%
Grand Total 17,014 100.00% 500,000,000 100.00%
Shareholders by Tranche:
No. of
Tranche No. of shares %
shareholders
1 to 200 5,137 654,579 0.13%
201 to 1,000 5,620 3,654,297 0.73%
1,001 to 3,000 2,773 5,476,610 1.10%
3001 to 30,000 3,338 21,690,028 4.34%
30,001 to 400,000 117 11,434,000 2.29%
more than 400,000 29 457,090,486 91.42%
Grant Total 17,014 500,000,000 100%

NMB BANK PLC
SHAREHOLDERS OF THE BANK (CONTINUED)

The following is a list of shareholders who own 0.5% or more of the shares of the NMB Bank.
2023 Number 2022 Number of
Name of the Shareholder % %
of Shares Shares
Arise B.V. 34.90 174,500,000 34.90 174,500,000
The Treasury Registrar (Government) 31.78 158,901,800 31.78 158,901,800
National Social Security Fund (NSSF Uganda) 4.68 23,400,000 4.68 23,400,000
National Investments Plc (NICOL) 4.08 20,395,130 4.08 20,395,130
Sajjad Fidahussein Rajabali 2.96 14,775,300 3.11 15,534,030
Aunali Fidahussein Rajabali 2.96 14,775,000 3.11 15,533,731
Banque Pictet And Cie Sa A/C Patrick Schegg 1.84 9,222,017 1.80 9,000,390
Public Service Social Security Fund (PSSSF) 1.56 7,790,451 1.56 7,790,451
Duet Africa Opportunities Master Fund Ic 0.90 4,498,923 0.90 4,498,923
Umoja Unit Trust Scheme 0.86 4,322,460 0.86 4,322,460
Abbasi Exports Limited 0.76 3,775,800 - -
African Lions Fund Ltd* - - 0.60 2,984,588
BNYM Re Frontaura Global Frontier Fund Llc 0.62 3,098,772 0.54 2,716,630
Zanzibar Social Security Fund* - - 0.59 2,050,919
TCCIA Investment Company Ltd 0.52 2,590,919 0.52 2,590,919
National Social Security Fund 0.51 2,535,414 - -
General Public 11.08 55,418,014 10.98 54,880,622
Total 100.00 500,000,000 100.00 500,000,000
Table 6: Largest shareholders of NMB Bank Plc according to company’s information.
*Shareholders who dropped in the top list in 2023.
STOCK EXCHANGE INFORMATION
In 2008 the Bank was listed on the Dar es Salaam Stock Exchange. As of 31 December 2023, NMB was
the largest bank in Tanzania and in the EAC region in terms of market capitalization (TZS 2.250 trillion)
and ranked within top 30 of the largest listed companies in Sub-Saharan Africa (Excluding South Africa).
During 2023, a total of 6,404,816 million NMB shares were traded during the year for a total cash amount
of TZS 26.16 billion. The price per share as of 31 December 2023 was TZS 4,500 (2022: TZS 3,020).
NMB Bank Plc Stock Snapshot 2023* 2022 2021 2020

Share Price (TZS)
Highest 4,880 3,140 2,340 2,340
Lowest 3,000 2,000 1,680 2,340
Average 4,085 2,769 2,209 2,340
Closing price 4,500 3,020 2,000 2,340
Volume traded (‘000) 6,405 11,342 14,984 28,001
Market Capitalization in billions (Based on
Closing price) 2,250 1,510 1,000 1,170
Ratios
Price-to-earnings ratio* 3.78 3.31 3.78 5.57
Price-to-NAV* (number of times) 0.98 0.82 0.82 1.03
Dividend yield (%)* NA 10.33 8.74 5.85
Table 7: NMB Bank Plc share five-year share performance. Source: Dar es Salaam Stock Exchange
* Based on average price
NMB BANK PLC
STOCK EXCHANGE INFORMATION (CONTINUED)
2023 NMB Bank Plc. Stock Market Snapshot
• Since January of 2023, NMB’s share price increased by 49.0% from TZS 3,020 to reach TZS 4,500
at the end of December 2023 (with an all-time-high price of TZS 4,880). This surge in share price has
raised NMB’s market capitalization to TZS 2.25 trillion as of December 2023 from TZS 1.5 trillion in
December 2022, positioning NMB as:
o The Largest listed bank in Tanzania and the entire East Africa (by market capitalization).
o The fourth largest listed company in East Africa.
• A Total of 6,404,816 NMB shares were traded during the year generating a total of TZS 26.16 billion,
making NMB among the top contributor to total market activities, contributing 12.0% of total market
activities.
Corporate Bonds Market Snapshot
Jasiri Bond:
NMB Jasiri bond remains the most liquid corporate bond in the market compared to other listed
corporate bonds. During the year 2023, the NMB Jasiri bond had 76 total transactions with a value of
TZS 904.8 million, traded at an average price of 89.0259; the Yield for Jasiri bond averaged 15.38%.
Jamii Bond:
On the other front, the Jamii bond, which was listed in December 2023, had a total of 3 transactions at a
value of TZS 52 million, traded at an average price of 100 (Par value) with a yield remaining at 9.5%.
Information regarding the trading tickets of listed NMB Corporate bonds in Dar es Salaam Stock Exchange
and Luxemburg Stock Exchange.
NMB JAMII BOND_TZS

NMB-2023/26. T1A
ISIN: TZ1996105270
NMB JAMII BOND_USD

NMB-2023/26.T1B
ISIN: TZ1996105213
NMB JASIRI BOND

NMB-2022/25. T4
ISN: TZ1996104463
NMB JASIRI BOND TRANCHE 4

NMB BANK PLC
15 CORPORATE GOVERNANCE
CORPORATE GOVERNANCE STATEMENT
The Bank is committed to maintaining high standards of corporate governance which enhance performance,
reduce risks, and promote the protection of our shareholders’ interests. The Board recognizes that sound
and effective corporate governance is essential to the long-term success of the organization, creating
trust and ensuring positive relationships with our stakeholders. The Bank has therefore put in place a
comprehensive range of governance committees, policies and procedures designed to ensure alignment
with sound corporate governance practices and principles.
The Board of Directors (“Board”) of NMB sees governance as promoting strategic decision making
that balances short, medium, and long-term outcomes, and safeguarding interests of the Organization,
and its stakeholders. The Board has the overall responsibility for governance and is accountable to its
shareholders.
This Governance report describes how during 2023 the Board has applied the main principles and
complied with the relevant provisions of Guidelines on Corporate Governance Practices by Public Listed
Companies in Tanzania (1994) and the Banking and Financial Institutions (Corporate Governance)
Regulations, 2021.
Code of Good Governance
The Board is committed to the principles of good corporate governance. We regularly review our corporate
governance arrangements and practices and have continued to evolve our governance framework and
underlying governance structures to reflect evolving good corporate governance norms as well as meeting
the needs of the business.
Dedicated to fostering robust corporate governance practices, the Board seeks to strengthen confidence
in the bank, thereby contributing to sustained long-term value for shareholders and other stakeholders.
Acknowledging its collective responsibility for the enduring success of the bank, the Board unwaveringly
commits to compliance with all relevant laws and regulations. Additionally, the Board places a high priority
on adherence to non-binding rules, codes, and standards, with compliance consistently on the agenda for
all Board and Committees’ meetings.
We have undertaken steps to ensure ongoing compliance with the Corporate Governance Code and
related Guidelines during the year. Throughout the year ended 31 December 2023, the Company has
endeavored to apply the core governance principles and to comply with the provisions of the Code
of Conduct. This statement, and the reports from the Board Committees, set out how we applied and
adhered to the Corporate Governance laws, regulations, and standards. The Directors’ report also
contains information required to be disclosed under the Code of Corporate Governance Practices for
Listed Companies (1994) and Disclosure Guidelines and Transparency Rules (DSE Rules, 2022). To the
extent necessary, certain information is incorporated into this Report by reference.
Through the Board Audit, Risk and Compliance Committee, the Board takes a proactive approach to
identifying and monitoring all regulations relevant to the bank, ensuring vigilance toward changes and
new regulations impacting the organization.

NMB BANK PLC
15 CORPORATE GOVERNANCE (CONTINUED)
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
Value Creation through Effective Corporate Governance
The Bank actively embraces effective corporate governance through well-defined governance structures,
recognized as vital support for our capacity to create and preserve value. Our governance approach not
only propels the achievement of strategic objectives but also harmonizes the interests of all stakeholders,
fostering sustainable value creation. Moreover, our Board maintains an unwavering commitment to
advancing corporate governance principles and practices by staying abreast of regulatory changes and
best practices.
Our corporate governance approach ensures that the bank:
• Adheres to applicable legal, regulatory, and effective corporate governance practices.

• Delivers sustainable impact to the bank’s stakeholders.
• Cultivates an ethical and risk-awareness culture.
• Promotes transparency, accountability, and empathy in managing relationships with stakeholders.
Continual improvement in corporate governance principles and practices remains a key focus, ensuring
the bank’s resilience in a dynamic regulatory landscape and adherence to the highest standards of ethical
conduct and responsible business practices.
OUR CORPORATE GOVERNANCE FRAMEWORK
Our corporate governance framework enables the Board to oversee the strategic direction of the bank, its
financial goals, resource allocation, and risk appetite.
This section details the key corporate governance arrangements and practices of NMB Bank Plc and
its affiliate companies (hereinafter, the “Bank”). The statement sets out the key components of NMB
Bank Plc’s corporate governance framework, which provides guidance to the Board, management and
employees and defines the roles, responsibilities and expected behaviors and conduct standards.
The Bank’s Governance Framework
MB operates within a well-defined corporate governance framework, ensuring the delegation of specific
N
mandates and delineating clear lines of responsibility while maintaining the Board’s oversight role. Our
governance philosophy is rooted in our ability to foresee and adeptly respond to changes, serving as a
cornerstone for accelerating our strategic initiatives. This extends to how the Board offers guidance and
supervision. Our governance framework, endorsed by the Board, is integrated into all bank operations,
providing strategic guidance for responsive decision-making, and upholding responsible conduct.

NMB BANK PLC
OUR CORPORATE GOVERNANCE FRAMEWORK (CONTINUED)
The Bank’s Governance Framework (Continued)
We apply the guiding principles of our framework to;

• Establish controls that prove effective in preventing financial losses or damage to reputation resulting
from misconduct or unethical conduct.
• Ingrain the principle of conducting business ethically and responsibly.
• Ensure the exploration of strategic opportunities within the risk appetite approved by the board,
fostering a judicious equilibrium between risk and reward. Uphold our standing as a conscientious
corporate entity.
• Through the framework, the Board sets out the strategic direction of NMB while entrusting the day-
to-day management of the business and the implementation of the bank’s strategy to the Executive
Management Team led by the Chief Executive Officer (“CEO’’). The Board operates through four
committees mandated to review specific areas and assist the Board to undertake its duties effectively
and efficiently.
The Board:
NMB is governed by the Board of Directors (“Board”). The appointment of directors is regulated by the
Memorandum and Articles of Association of the Company (MEMARTS), as well as the guidelines issued
by the Bank of Tanzania (BOT) and the Capital Markets and Securities Authority, pursuant to the Banking
and Financial Institutions Act 2006, and the Capital Markets and Securities Act 1994, respectively.
The Board is accountable to the shareholders for the overall bank’s performance and is collectively
responsible for the long-term success of the bank. The Board is responsible and accountable for
providing effective corporate governance, direction, and control of the bank. The Directors have a duty to
exercise leadership, enterprise, integrity, and judgment based on transparency, fairness, accountability,
and responsibility.
The Board is composed of nine Directors, three of whom are Independent Non-Executive Directors.
The Board is assisted in fulfilling its responsibilities by four principal committees: Executive Committee,
Human Resources and Remuneration Committee, Audit, Risk, and Compliance Committee, and Credit
Committee. The Committee charters are reviewed annually to ensure they are aligned with the most
recent version of Corporate Governance Laws, Regulations, and Guidelines and that the Committees
function effectively. The relevant Committee recommends any amendments to the Board.
The Board Charter
The Board Charter is reviewed regularly by the Board and provides a clear definition of the roles and
responsibilities of the bank’s Chairman, Directors, and Company Secretary. The roles and responsibilities
of the Board Chairman and the Chief Executive Officer are separate and distinct with a clear division of
responsibility between the running of the Board and the executive responsibility of strategy execution and
running of the business.

NMB BANK PLC
The Board Charter (Continued)
The Board Charter is also used for the following purposes:
• As an orientation tool for new Directors.

• As a reference document for Directors to learn more about the Board
• As a reference document to external stakeholders (including regulators, development finance
institutions, etc.) with a view to gaining further insights on the Board’s functioning, mandate, and
guiding principles.
The Board Charter is structured to align seamlessly with regulatory frameworks, including but not
limited to the Banking and Financial Institutions Act 2006 (BFIA), CMSA Act & Guidelines, the bank’s
Memorandum and Articles of Association (MEMARTS), and other pertinent legal provisions. Regular
reviews are conducted annually or as deemed necessary to maintain its relevance and ensure consistent
alignment with the Board’s overarching objectives.
The Revised Charter of the Board of Directors:
In line with good corporate governance practice of annual and regular review of the Board Charter, the
Charter has recently been reviewed and revised to:
1. Align it with prevailing best standards including incorporation of ESG agenda as one of the key
responsibilities of the board to demonstrate our continued commitment to sustainability.
2. Incorporate recommendations for sustainable path to continuous governance improvement, as
informed by periodic Corporate Governance Assessment and Review on the bank.
Revised Board Charter was reviewed by the BARCC and approved by the Board in 2023. The approved
Board Charter further aligns the bank’s governance standards with:
• The Banking and Financial Institutions (Corporate Governance) Regulations 2021,

• Risk Management Guidelines for Banks and Financial Institutions, 2010 and
• Corporate Governance Guidelines for Listed Companies.
The Board is confident that, in line with the approved Board Charter, no circumstances existed during
the reporting period that impaired the objective judgment of any individual Non-Executive Director. This
commitment to independence reflects the Board’s dedication to ensuring transparency, accountability,
and high standards of corporate governance.

NMB BANK PLC
Code of Conduct for the Board of Directors (“The Code”)

With a view to enhance integrity, ethics, and transparency in governing the affairs of the bank, the Board
of Directors approved the code of conduct for the Board of Directors in August 2023.
The Code has been adopted to set principles and ethical standards for Board Members in connection
with, or having a bearing upon, their status and responsibilities in the bank. It governs Directors’ personal
and professional conduct to ensure the highest ethical standards.
Prior to the adoption of this Code, the conduct of Directors was governed by the NMB Code of Conduct
which was applicable to both employees and Directors of the bank.
Board Structure
To enhance its effectiveness, the Board establishes specialized committees, each assigned specific
duties and responsibilities aimed at supporting and enhancing its functions. These committees serve both
monitoring and advisory roles, recognizing that the Board retains collective responsibility for decision-
making. Every Committee comprises directors possessing relevant skills, and their terms of reference are
meticulously reviewed annually, to ensure ongoing relevance, alignment and compliance with applicable
regulations and best practices.
The Board diligently monitors these responsibilities to guarantee comprehensive coverage and control
over the bank’s operations. Committee Chairs provide regular written and verbal feedback during quarterly
Board meetings. This structured approach reflects our commitment to robust corporate governance and
effective oversight.
BOARD’S ROLE AND DIRECTORS’ RESPONSIBILITIES
The Board is responsible to shareholders for creating and delivering sustainable shareholder value through
the management of the bank’s business. Among our responsibilities are developing and overseeing the
execution of the bank’s strategy within a framework of effective risk management and internal controls,
demonstrating ethical leadership, and upholding corporate governance best practices.
The Board recognizes its duties under the Tanzania’s Companies Act, 2002 (Companies Act, 2002) to
promote the long-term success of the Company, considering not only the views and interests of our
shareholders but also our various stakeholders, such as our employees, our customers, the environment,
and our community.
Each Director individually recognizes that they have a statutory duty to consider and represent the
Company’s various stakeholders in deliberations and decision-making.

The Board delegates authority for the day-to-day management of the business to the CEO. The CEO,
in turn, delegates authority, as permitted under the corporate governance framework, to the Executive
Management of the bank.

NMB BANK PLC
BOARD’S ROLE AND DIRECTORS’ RESPONSIBILITIES (CONTINUED)
Operation of the Board
The Board held 12 meetings in 2023, 4 ordinary Board meetings and 8 Special Board meetings. As set
forth in the Board Charter, a minimum of four standard meetings must be held annually, with at least
one each quarter. The Board adheres to an established yearly calendar and follows an agenda outlining
topics for discussion. Board members are duly informed of any Changes to the calendar or the agenda of
matters to be discussed.
The Board’s responsibilities include:

• Promoting the bank’s long-term success and delivering sustainable value to shareholders.
• Establish and approve the bank’s strategic and financial plans to be implemented by management.
• Setting the Bank’s risk appetite and monitoring the bank’s risk profile.
• Overseeing the Risk Management Framework and its operation by management.
• Approving capital expenditure for material transactions.
• Reviewing succession planning for the Senior management team and makes senior executive
appointments, organizational changes, and high-level remuneration issues.
• Providing oversight over performance against targets and strategic objectives
• Providing oversight over reporting to shareholders on the direction, governance, and performance of
the bank as well as other material events that require reporting and disclosure.
• Managing Environmental, Social and Governance (ESG) and Sustainability reporting.
Separation of Roles and Responsibilities
The role of Board Chairman is separate from that of the Chief Executive Officer. There is a clear division
of responsibilities between the leadership of the Board by the Board Chairman, and the executive
responsibility for day-to-day management of the bank’s business, which is undertaken by the bank’s Chief
Executive Officer.
Board Chairman is responsible for the strategic leadership of the Board and is pivotal in creating conditions
for the overall effectiveness of the Board. The Chairman plays a pivotal role in fostering constructive
dialogue between shareholders, the Board and management at the Annual General Meeting and other
shareholder meetings.
This governance model emphasizes a collaborative leadership approach between the Chairman and
the CEO. A precise division of responsibilities safeguards against unilateral decision-making, fostering
transparency and accountability.

NMB BANK PLC
Separation of Roles and Responsibilities (Continued)
Chairman • R esponsible for leading the Board, its effectiveness and setting high governance
standards.
• Cultivating effective relationships, fostering transparent communication, and
facilitating constructive debates.
• Guiding the board in formulating and determining the bank’s strategic direction and
policies.
• Ensuring the Chief Executive Officer rigorously implements board-approved
strategies and policies.
• Upholding and promoting the highest standards of integrity, probity, and corporate
governance.
• To ensure effective communication with shareholders and, where appropriate, the
stakeholders.
• Upholding rigorous standards of preparation for meetings and ensuring that
decisions by the Board are executed.
Non-Executive • R esponsible for ensuring that the bank has in place proper internal controls as well
Directors as a robust system of risk management.
• To support the development of proposals on strategy, hold management to account
and ensure that they discharge their responsibilities properly, while creating the
right culture to encourage constructive challenge.
Chief • Responsible for the executive responsibility for day-to-day management of the
Executive bank’s business
Officer • Recommending bank strategy to the Board and ensuring that the strategic objectives
and Board’s directives are implemented with the support of the management team.
• Implementing the board-approved strategies and polices as directed by the
Chairman and the Board.
• Conducting the bank’s affairs in strict accordance with board-adopted practices and
procedures, championing integrity and corporate governance excellence.
• Maintaining robust relationships with the Chairman and the Board through regular
reviews of key developments.
Company • Provides support and guidance to the Board in matters relating to governance and
Secretary ethical practices.
• Also responsible for induction programs of new directors, keeping Board members
abreast of relevant changes in legislation and governance principles, and training
for the Board members.
• Provides a link to ensure effective communication between the Board and Chief
Executive Officer.

NMB BANK PLC
Director Independence
Director independence is fundamental for effective corporate governance, with the Board relying on
impartial, objective, and independent judgment on all issues under the Board’s remit of consideration.
To ensure Independence, the Board Charter, prepared in line with the Banking and Financial Institutions
(Corporate Governance) Regulations, 2021 issued by the Bank of Tanzania (BOT), provides that;
• All members of the Board shall be Non-Executive Directors, and one third (1/3) shall comprise of
Independent Directors with the requisites experience in Banking, Finance, Accounting, Auditing, Law
or Economics.
• Chairmanship of the Board is reserved exclusively to Non-Executive Directors.
• The Chairman of the Board is restricted from being a member of the Audit Committee or Credit
Committee of the Board.
• The Chairman of the Board is restricted from being a Chairman of any Committee of the Board.
• An independent director is expected to be devoid of any relationships that could potentially impair, or
create the appearance of impairing, their capacity to exercise unbiased judgment.
• Members of the Board Audit, Risk and Compliance Committee (BARCC) are restricted from being a
member of any other Board committee.
Assessing Independence:
When evaluating a director’s independence, the Board meticulously considers all facts and circumstances.

This assessment concentrates on whether the director maintains any relationships, whether direct or
indirect, with the company, senior management, or fellow directors that could impact actual or perceived
independence. This encompasses associations with entities holding substantial business connections
with the company or not-for-profit organizations substantially supported by the company.
The board’s independence undergoes an annual evaluation based on regulations set by the National
Board of Accountants and Auditors, Tanzania (NBAA). Additionally, the regulator, Bank of Tanzania
(BOT), conducts assessments of all Board members. During the year, the Board reflected on the topic
‘independence of mind’, in context of the periodic Board evaluation, and it was identified that throughout
the reporting period, there was neither an incidence where independence of mind was impaired, nor
complaints regarding Board Independence were received by the Board from NBAA.
Restrictions on Insider Trading:
The Bank enforces a policy wherein directors and employees deemed to possess privileged knowledge of
material facts or changes in the affairs of the bank, undisclosed to the public, are prohibited from buying
or selling (“trading”) bank securities, except in strict adherence to the bank’s policy.
NMB’s Insiders are barred from trading bank securities, whether on their behalf or on behalf of others,
during closed trading windows. It is mandatory for insiders to maintain confidentiality and ensure adequate
protection from unauthorized disclosure or access to any unpublished and non-public sensitive information
received by them in the course of their employment or office.

NMB BANK PLC
BOARD NOMINATION, APPOINTMENT, INDUCTION, AND TRAINING
Board Nomination, Appointment, and Re-Election of Directors
As prescribed in the bank’s MEMARTS, shareholders with more than a 10% stake in the share capital are
entitled to nominate one director for every 10% of the shares held by them. The names of the nominated
Non-Executive Directors are presented to the Annual General Meeting (AGM) for approval and further
submitted to the Bank of Tanzania for the final vetting and approval.
Directors not nominated by the Shareholders with more than 10% stake in the bank’s share capital, shall
be identified by an independent firm of good repute which shall take action to identify and attract the
best candidates for directorship for the remaining 1/3 of Board positions. Identified candidates will also
undergo interview by the BHRRC and subsequently by the main Board.
Board members are appointed based on merit, and candidates undergo a thorough assessment against
objective criteria, with a keen awareness of the advantages of fostering diversity within the Board. The
appointment process adheres to rigorous standards, especially concerning Directors and specific senior
roles. The Board Charter provides that, in selecting Directors, primary consideration shall be given to the
following guideline qualifications:
• Professional competency.
• Personal qualities and experience.
• Contribution they can make to the smooth running of the Company and its Governance, including the
ability and willingness to commit adequate time to Board and Committee matters.
• Consistency with the standards of independent judgment, ethics, and integrity, which they are expected
to observe.
• Commitment to represent the Company’s shareholders.
The Board recommends Directors for appointment by the shareholders at the Annual General Meetings
(AGMs). Independent Non-Executive Directors (INEDs) shall be appointed as per regulatory requirements.
The current Board structure comprises nine Non-Executive Directors, including the Board Chairman.
The Board determines its size and composition, subject to the Company’s Articles of Association, Board
Charter and applicable guidelines, laws, and regulations.
The Board composition is driven by the following principles, pursuant to the Banking and Financial
Institutions (Corporate Governance) Regulations, 2021 and the international norms of good corporate
Governance:
- The Board must comprise of non-executive directors.

- The Board should consist of directors with a broad range of skills, experience and expertise and be
from a diverse range of backgrounds.
- The Chairman of the Board must be a non-executive director.
- All directors are obligated to disclose external directorships, business interests, and conflicts of interest
annually. They must promptly inform the Company Secretary of any changes to such directorships and
conflicts of interest.
- A Board member elected or appointed by shareholders cannot attend Board meetings or assume any
responsibilities until obtaining approval from the Bank of Tanzania.

NMB BANK PLC
BOARD NOMINATION, APPOINTMENT, INDUCTION, AND TRAINING (CONTINUED)
Succession Planning
Succession planning is an on-going process, with the Board discussing the same regularly and robustly.
The process to appoint a new director (Independent Non-Executive Directors) is overseen by the
Board Human Resources and Remuneration Committee (BHRRC). The Committee is responsible for
recommending the procedure for the selection of new directors, and the proposed criteria for the selection
of candidates with reference to the current mix of skills, knowledge, and experience.
The Committee identifies and nominates a shortlist of candidates and may engage the services of a
professional intermediary (recruitment agent) to assist in identifying and assessing potential candidates.
The preferred candidates meet with the members of the Board Human Resources and Remuneration
Committee before a final decision is made. Prior to confirmation of appointment, all Directors are required
to meet the “Fit and Proper” requirements set out in the Regulatory Guidelines issued by the Bank
of Tanzania. The key terms and conditions of a director’s appointment are documented in a letter of
appointment.
Board Induction and Training
New Board members undergo a comprehensive induction program tailored to familiarize them with the
bank’s business, organizational structure, subsidiaries, the roles of the Board and its committees, strategy,
objectives, policies, procedures, operations, senior management, and the business environment.
The BHRRC is committed to ensuring continuous training and development of its members, addressing
identified needs, and keeping them well-informed on critical information pertinent to the business and
corporate governance environment. An annual review is conducted by the Board to identify training needs
for each member regularly, facilitating upskilling and continuous development.
In 2023, the Board successfully completed planned training and development sessions as follows:
• Corporate Governance and Leadership in Banks and Financial Institutions:

• Africa`s Directors Conference:
• Central Bank Digital Currency (CBDC) Masterclass:
• Customer Experience Operational Excellence:
• The 10th Annual Governance Forum:
• Africa Investment Event 2023:
• Board and EXCO Development Program: and
• Sustainability training for the Board.
Study Tour in Brazil:

Board Members also attended a comprehensive study tour in Brazil, where the Board and the Management
Team visited Sicred, a cooperative financial institution committed to the financial life of its members and
communities.

NMB BANK PLC
BOARD NOMINATION, APPOINTMENT, INDUCTION, AND TRAINING (CONTINUED)
Board performance and evaluation
The BHRRC makes an assessment at least once a year to determine whether the Board and Board
committees are performing effectively and identify steps for improvement. We believe that it is important
to obtain an independent perspective on the Board’s performance during execution of a Medium-Term
Plan (3-5 years), and to gain insights on the Board’s performance against peer boards and best practices.
An independent external evaluator is engaged to conduct the Board performance evaluation for the
financial year.
On 29 November 2023, the Board engaged KPMG East Africa, an independent external evaluator, to
conduct the Board performance evaluation for the year 2023. The Board evaluation report was tabled
for discussion in the Board and subsequently submitted to the Bank of Tanzania in January 2024 in
compliance with the Regulator’s requirements. The results of the Board evaluation indicate improvement
in Board’s operations and effectiveness with a score of 92% in 2023 compared with 82% in 2021. The
Board considers the external evaluation report critically and is committed to address all recommendations
to improve effectiveness of the Board in discharging its responsibilities.
Access to Information
Those charged with governance have unrestricted access to timely and comprehensive information
on material strategic, operational, risk management, and financial matters of the bank. The Board
Secretariate, through the Company Secretary, offers guidance on governance matters, and independent
professional advice is accessible when needed, covered by the bank’s expense.
Board Engagements and Relationships
Regular shareholder outreach and ongoing dialogue are essential for effective investor relations. The
Board maintains regular dialogue with analysts and investors, emphasizing transparency in informing
shareholders about the bank’s financial performance. Relevant information is continuously published on
the bank’s website and the Dar es Salaam Stock Exchange website.
The Board recognizes, respects, and protects shareholder rights, ensuring equitable treatment. It provides
shareholders with required information under applicable law and establishes mechanisms for effective
communication, including the media. The Board takes a stakeholder-inclusive approach, considering the
legitimate interests of the bank’s stakeholders in its deliberations, decisions, and actions.
While diverse shareholder interests are considered, the Board acts in the long-term best interests of the
bank and all shareholders, exercising independent judgment.

NMB BANK PLC
Board Engagements and Relationships (Continued)
Table 8: Board Stakeholders Engagement

Investors • D
irectors held virtual and in-person meetings with investors, analyst community and
peers to understand evolving views, trends, and sentiment.
Key meetings with the bank’s shareholders include:

• Investors’ Breakfast Meeting. The Meeting was held in May 2023 and provided an
opportunity for the Board to meet with shareholders, the Diplomatic community,
Regulators, and Analysts. The bank’s strategic direction and commitment to long-term
value creation were presented during the meeting.
• The 23rd Annual General Meeting. The AGM was held virtually in June 2023. During
the Meeting:
o The shareholders approved a record dividend pay-out of TZS 286/- per share,
up from TZS 193/- dividend per share that was approved and paid out in 2022.
o Proposed changes to Directors’ Remuneration were also approved by the
shareholders during the meeting.
• P lanned visits to strategic shareholders. During the year, the Board Chairman held
one-on-one meetings with the bank’s strategic shareholders, including a meeting
with the Arise BV CEO, Mr. Garvin Tipper, and the Treasury Registrar, Mr. Nehemiah
Mchechu.
• D uring, our historic 25 years’ commemoration event, Board members had an
opportunity to meet and interact with top government officials notably, the President
of the United Republic of Tanzania, H.E Samia Suluhu Hassan, Honourable Ministers,
Shareholders, Clients, and Employees.
• The Chairman also attended the Arise Annual conference in Cape Town, South Africa,
where he met the Board of Arise B.V. The Key area of discussion was the bank’s
exemplary financial results and continued solid value creation to shareholders and the
community.
Employees Those charged with governance also held a number of engagements with
the employees with a view of boosting morale, engagement, productivity and
communicating on expected ethical standards.
Examples of the Board’s engagement with the bank’s employees in 2023 included:
• Directors engaged with employees at the Head Quarters, during quarterly Board
meetings.
• Directors engaged with the Branch network during branch visits.
• B oard Chairman held a series of periodic meetings with the Management Team
members, with a view to fostering deepened relations and healthy collaboration
between the Board and the management team.
• The Chief Executive Officer reported to the Board on her engagement with
colleagues, including discussions about strategy, performance, conduct and culture,
and risk governance.
Customers With a view to drive customer centricity agenda, those charged with governance held
several engagements with the bank’s customers.
Examples of Board engagement with customers in 2023 included:
• T
he Board Chairman met with customers for a variety of reasons, including to hear
customer feedback, and deepen value adding relationship.
• M
anagement provided reports to the Board, which contained updates on client
relations and sentiments, net promoter scores, value generated from key client
relations and related ring-fencing strategies.

NMB BANK PLC
COMPOSITION OF THE BOARD OF DIRECTORS DURING THE YEAR ENDED 31 DECEMBER 2023
The Bank is committed to ensuring the overall effectiveness of the Board and that it achieves the appropriate composition and balance of Directors. The Board
is comprised of Non-Executive Directors who bring a diversity of skills, experience, and knowledge to the discussion, and play an important role in supporting
the Board. The Non- executive Directors are expected to have a clear understanding of the strategy of the bank as well as knowledge of the industry and the
operating market.
The Board, through the Human Resources and Remuneration Committee regularly reviews the skills, knowledge, experience, and diversity represented on the
Board against the skills and experience needed to deliver the strategy and continues to make efforts to further diversify.
The current Board composition is as follows:
As of 31 December 2023, the Board comprised the Board Chairman, and eight (8) Non-Executive Directors. One Board position remained vacant during the
year pending recruitment. The table below sets out the roles and responsibilities of the existing directors as at end of the year.
No Name Position Gender Age Nationality Qualification discipline Date of Appointment/ Retired
Appointed on 5 June 2020. Re-appointed
1 Dr. Edwin P. Mhede Chairman Male 45 Tanzanian Economist, CDIoDT
on 2 June 2023
2 Juma Kisaame Non-Executive Male 60 Ugandan Banker, CDIoDT
on 2 June 2023
3 George Mandepo Non-Executive Male 48 Tanzanian Lawyer, CDIoDT
on 3 June 2022
4 Hendrik Reisinger Non-Executive Male 59 Dutch Economist/ Banker
on 3 June 2022
Independent - Non-
5 Benson Mahenya Male 55 Tanzanian CPA (T), CDIoDT Appointed on 15 June 2021
executive
6 Aziz Dachi Non-Executive Male 48 Tanzanian ICT, Auditor, CDIoDT Appointed on 3 June 2022
Independent - Non-
7 Clement Mwinuka Male 60 Tanzanian CPA (T), CDIoDT Appointed on 3 June 2022
Executive
Independent - Non-
8 Ramadhani Mwikalo Male 69 Tanzanian IT Expert, CDIoDT Appointed on 3 June 2022
Executive

NMB BANK PLC
Those Charged with Governance
The Board expresses confidence in its composition, affirming the presence of an adequate number
of members possessing a diverse mix of skills, experiences, and knowledge. This diversity equips
the Board to effectively challenge and contribute to the development of strategic proposals while also
offering independent judgment on matters related to performance and risk. Notably, the Board includes
Independent Non-Executive Directors who provide unbiased opinions on various board-related matters,
enhancing the overall objectivity and robustness of decision-making processes.
Board of Directors’ Compensation
he remuneration for all Directors undergoes an annual assessment to ensure alignment with industry
T
benchmarks in terms of compensation and benefits. Non-Executive Directors are not eligible for pension
scheme enrollment and do not partake in the bank’s remuneration program. The total Board compensation
and remuneration for the year amounted to TZS 1,447 million (2022: TZS 752 million). Further details can
be found in note 43 of the financial statements.
Company Secretary

The Company Secretary as of 31 December 2023, Ms. Mwantumu Salim provides support and guidance
to the Board in matters relating to governance and ethical practices. She is also responsible for induction
programs of new Directors, keeping Board members abreast of relevant changes in legislation and
governance principles changes. The Secretary plays a key role in ensuring good governance by helping
the Board and its Committees to function effectively and in accordance with terms of references and best
practices.
Conflict-of-Interest and Related Party Transactions
In November 2023, the Board approved the Conflict-of-Interest Policy in compliance with the requirements
of Regulation 20 (2) of the Banking and Financial Institutions (Corporate Governance) Regulations,
2021, that requires the Board to establish policies for identification and monitoring of potential conflicts of
interests.
Those charged with governance are expected to refrain from any action, position, or interest that conflicts
with the bank’s interests or appears to be a potential conflict. In this context, directors are obligated to:
• Declare any interests that might lead to potential or perceived conflicts, such as holding multiple
directorships or having business relationships that could compromise objective judgment.
• Disclose, as soon as they become aware, if a subject to be discussed at a Board or Committee
meeting may result in a conflict of interest. The conflicted director is prohibited from further
participation in the discussion or voting on the matter.
• Consider resigning from the Board if they have a continuing material conflict of interest.
The Board is responsible for evaluating all declared potential or perceived conflicts of interest and
approving appropriate transactions with the bank. The Company Secretary diligently maintains a register
documenting declared conflicts of interest.

During the year, none of the Directors had a material interest, either directly or indirectly, in any significant
contracts with the bank.

NMB BANK PLC
16 BOARD COMMITTEES
The Board has delegated authority to various Board committees to enable them to oversee certain specific
responsibilities based on their terms of reference. The terms of reference of each Board Committee set out
the responsibilities of the Board Committee, conduct of meetings including quorum, voting requirements
and qualifications for Board Committee membership. All our Board committees are comprised of Non-
Executive Directors only. Any change to the terms of reference for any Board Committee requires Board
approval. The minutes of Board Committee meetings, which record the key deliberations and decisions
taken during these meetings, are circulated to all Board members for their information.
Mechanisms are in place to facilitate these linkages, including ensuring that there are no gaps or
unnecessary duplications between the remit of each Committee and overlapping membership between
Board committees where necessary. Further details on each committee, including their oversight and
focus during 2023, can be found in the next section of this report.
During the year, the Board had the following Board Committees to ensure a high standard of corporate
governance throughout the bank.
i. Board Executive Committee (BEC)

ii. Board Audit, Risk and Compliance Committee (BARCC)
iii. Board Human Resources and Remuneration Committee (BHRRC)
iv. Board Credit Committee (BCC)
16.1 Board Executive Committee (BEC)
The Committee assists the Board in fulfilling its oversight responsibilities in accordance with the Articles
of Association of the Company. The Committee, which is a steering committee for the full Board, has
an oversight role over the execution of the bank’s strategy, critical key projects of the bank, provides
guidance, supports, and mentors management during transitional periods as well as being involved in any
crisis that may arise within the bank.
It is the general intention that all substantive matters in the ordinary course of business are brought
before the full Board for action and/or ratification, but the Board recognizes the need for flexibility to act
on substantive matters where action may be necessary between Board meetings.
This Committee met four (4) times during the year. It comprised of the following members;
Name Position Nationality Qualification

1 Juma Kisaame Chairman Ugandan Banker
2 Dr. Edwin P. Mhede Member Tanzanian Economist
3 Ramadhani Mwikalo Member Tanzanian IT Expert
16. 2 Board Audit, Risk, and Compliance Committee (BARCC)
The Committee assists the Board in fulfilling its oversight responsibility relating to the integrity of the
bank’s financial statements and financial reporting process, systems of accounting and financial controls;
the annual external audit of financial statements, reporting and internal controls; performance of the
Internal Audit, Risk and Compliance Functions; compliance with legal and regulatory requirements;
adequacy of the risk management function; the oversight responsibility on planning and conduct of audits
to determine that the bank’s financial statements and disclosures are complete and accurate and are in
accordance with International Financial Reporting Standards and applicable laws, rules and regulations.

NMB BANK PLC
16 BOARD COMMITTEES (CONTINUED)
16. 2 Board Audit, Risk, and Compliance Committee (BARCC) (Continued)
Audit Functions:
The BARCC assists the Board by providing oversight of the bank’s financial reporting responsibilities
including external audit independence and performance. The Audit Committee comprises of three Non-
executive Directors. The Committee’s responsibilities include the following:
• Reviewing the quarterly and full- year statutory financial reports for recommendation to the Board.
• Reviewing significant accounting estimates and judgments used for the preparation of the financial
reports.
• Advising the Board on the bank’s financial reporting requirements to ensure that the Board has
exercised oversight of the work carried out by management, Internal Audit Function, and the external
auditor.
• Reviewing and approving any new or proposed changes in the bank accounting policies.
• Monitoring developments in statutory reporting and accounting and disclosure requirements.
• Reviewing the effectiveness of and ensuring that management has appropriate internal controls over
financial reporting.
• Reviewing and monitoring the relationship with the external auditor and oversees its appointment,
tenure, rotation, remuneration, independence, and engagement for non-audit services; and
• Overseeing the work of the Internal Audit and monitoring and assessing the effectiveness, performance,
resourcing, independence and standing of the function.
BARCC also has overall non-executive responsibility for oversight of risk-related matters and the risks
impacting the bank.
Risk and Compliance Functions:

• Advising the Board on risk appetite-related matters, and key regulatory submissions.
• Overseeing and advising the Board on all risk-related matters, including operational risk, financial
risks, non-financial risks, and the effectiveness of the bank’s Enterprise Risk Management framework.
• Undertaking a review and challenge of the bank’s stress testing exercises.
• Reviewing the effectiveness of the bank’s enterprise risk management framework and internal controls
systems.
• Reviewing the Bank’s overall Risk Appetite Statement and makes recommendations to the Board.
• Reviewing the appropriateness and effectiveness of the bank’s risk management systems, considering
the implications of material regulatory change proposals, reviewing reports on principal risks to the
bank’s business.
• Maintaining an oversight of all risk-related matters and the risks impacting the bank.
• Monitor the changes in the external regulatory environment to make sure that we continue to have
appropriate financial, compliance, and internal controls in place.
• Continue to provide assurance to the Board that controls, and compliance culture fully support the
bank’s strategy.
• Ensure that the policies, processes, and systems align with the regulatory requirement and reflect
changing regulatory landscape.
• To ensure that the bank is fully compliant to applicable laws, regulations, and prevailing requirements
within the operating jurisdiction.

NMB BANK PLC
16. 2 Board Audit, Risk, and Compliance Committee (BARCC) (Continued)

his Committee met eleven (11) times during the year. Among the 11 meetings, 4 are ordinary and 7 are
T
special meetings. It comprised of the following members;
1 Clement Mwinuka Chairman Tanzanian CPA (T)
2 Benson Mahenya Member Tanzanian CPA (T)
3 Aziz Dachi Member Tanzanian ICT, Auditor
16.3 Board Human Resources and Remuneration Committee (BHRRC)

The primary function of the Committee is to assist the Board of Directors in fulfilling its oversight
responsibility to shareholders by ensuring that the bank has coherent remuneration policies and practices
that fairly and responsibly reward executives and staff, having regard to performance, governing laws,
and highest standards of governance.
Committee’s Functions:
• The critical role of the Committee is to ensure robust succession planning is in place and that the
composition of the Board and its committees continue to evolve, providing effective oversight of the
bank’s strategy.
• To ensure the Bank has a diverse Board comprising individuals with a range of skills, backgrounds,
experience, and perspectives.
• The Committee has oversight of the process by which the Board, its committees and individual
Directors assess their effectiveness.
• The Committee is responsible for Board Members and Senior Executive appointment process.
• The Committee is responsible for overseeing the remuneration of Senior Management, determining
the framework and policies for remuneration and overseeing workforce remuneration, for alignment
of reward, incentives, and culture.
This Committee met four (4) times during the year. It comprised of the following members:
1 George Mandepo Chairman Tanzanian Lawyer
2 Hendrick Reisinger Member Dutch Economist/ Banker
3 Ramadhani Mwikalo Member Tanzanian IT Expert
16.4 Board Credit Committee (BCC)
The Committee assists the full Board in the management of credit risk by reviewing continuously the
credit portfolio, credit standards, and credit policy.
Committee functions:
• The Committee is tasked with the supervision of the bank’s credit performance.
• It conducts reviews of loans issued, monitors credit metrics, and provides reports on loan
performance.
• The Committee approves credit policies, individual lending authorities, and methodology.
• It evaluates the quality of the credit portfolio and analyses trends that may impact it.
• The Committee also collaborates with other board committees such as the Audit Committee or Risk
Committee. Reviewing and ensuring that the bank complies with regulatory requirements regarding
the grant of credit facilities; and
• Handling such other issues referred to the Committee from time to time by the Board.
NMB BANK PLC
16.4 Board Credit Committee (BCC) (Continued)
This Committee met ten (10) times during the year. It comprised of the following members:
1 Hendrik Reisinger Chairman Dutch Economist/ Banker
2 Juma Kisaame Member Ugandan Banker
3 George Mandepo Member Tanzanian Lawyer
17 BOARD ACTIVITIES DURING THE YEAR
The Board held 12 Board meetings during the year out of which 4 were ordinary and 8 were special
meetings. There were also:
• Four (4) Board Executive Committee meetings.
• Eleven (11) Board Audit, Risk and Compliance Committee meetings; and
• Ten (10) Board Credit Committee meetings.
• Four (4) Board Human Resources and Remuneration Committee meetings.
The following table shows the number of Board and Committee meetings held during the year and the
attendance by directors:
Directors Board (12) BARCC BCC (10) BHRRC BEC (4)

(11) (4)
Dr Edwin P. Mhede 12 n/a n/a n/a 4
Juma Kisaame 12 n/a 10 n/a 4
George Mandepo 11 n/a 10 4 n/a
Hendrik Reisinger 12 n/a 10 4 n/a
Benson Mahenya 12 11 n/a n/a n/a
Aziz Dachi 12 11 n/a n/a n/a
Clement Mwinuka 12 11 n/a n/a n/a
Ramadhan Mwikalo 12 n/a n/a 4 4
Key Board Activities in 2023
The Board adhered to an annual schedule of rolling agenda items designed to ensure that all matters are
considered and reviewed at the appropriate point in the financial and regulatory cycle. The Board had
an extensive agenda during 2022 with considerable focus on reviewing progress of the Medium-Term
Plan (2021-2025) and relevant strategic initiatives, reviewing and approving governance policies and
overseeing performance and risk.

NMB BANK PLC
17 BOARD ACTIVITIES DURING THE YEAR (CONTINUED)
Key Board Activities in 2023 (Continued)
What was on the Board’s agenda during 2023:
Financial and • Reviewed and approved quarterly, half-year and full-year results.
corporate reporting • Received quarterly financial performance updates.
• Declared proposed dividend in respect of the period ended 31 December 2022.
• Annual Report discussion and updates and recommendations (from the Board
Audit, Risk and Compliance Committee).
• Reviewed and approved the bank’s annual report and accounts.
• Reviewed and approved the notice of AGM.
Strategy and • T he Board received progress and monitored the progress made on key strategic
Business initiatives (under year 3 of MTP) and financial commitment, with the overall
Performance progress on strategy commended across the Board. Board approved rebased
Medium-Term Plan.
• Monitored and assessed the strength of the bank’s capital and liquidity positions.
• Received updates on bank’s performance, including business level performance
updates.
• Reviewed potential scenarios with probable material impact on performance.
• Received an update on the progress of the Operations strategy, including the
focus on Operations re-engineering through Simplification, Automation and
Migration.
• Received an update on the priorities and progress against the cross-border
strategy including a focus on the strategic opportunities and initiatives across
the region.
• Received updates on key projects (e.g. Digital transformation strategy and
related projects).
• Received CSI activities report from the CEO.
• The Board reviewed and approved 2024 Budget and Strategy.
Financial decisions • T he Board approved key financial decisions throughout the year and approved
the Annual Report and Accounts 2022.
• The Board passed a proposed dividend payout of TZS 286.25/- per ordinary
share. A total dividend payout of TZS 143.1 billion was approved by the Board,
which was subject to Shareholders’ approval at the Annual General Meeting.
Governance and • C onsidered external legislative and governance developments and received
Policies regulatory updates.
• The Board continued to oversee the governance, smooth operation, and oversight
of the bank.
• The Board continued to review its skills and experience to ensure it comprises the
relevant skills, experiences, and competencies to discharge its responsibilities
effectively.
• The Board monitored its compliance with the Principles of Good Corporate
Governance Practices and the Companies Act 2002 throughout the year.
• R eviewed and approved bank policies.
- Compliance Risk Management Policy
- Financial Consumer Protection Policy
- Strategic Risk Management Policy
• C onsidered Board and Committees’ effectiveness.

NMB BANK PLC
Key Board Activities in 2023 (Continued)
What was on the Board’s agenda during 2023: (Continued)
Budget and • A pproved the Bank’s 2024 budget.

Performance • M onitored the Bank’s financial performance.
• Approved the full year and half year results and considered the key internal and
external factors in determining payment of a final and interim dividend.
• M onitored the Bank’s Competitor and Market position and performance for the
full year 2023.
• N oted management’s presentation to the regarding the 2023 risk scenario
stress test and assesses its potential material impact on performance.
Risk, Regulatory and • R

eceived regular risk reports from the Chief Risk and Compliance Officer
Legal Considerations focused on the bank’s risk and control operating environment.
• Approved the risk appetite validation of the 2024 Budget.
Digital and Technology • T

hroughout the year, the Board received regular updates on technology
from the Chief Technology and Digital Transformation Officer including
implementation status of digital and technology related initiatives.
People, Culture and • R

eceived an update on Management Team succession planning and an
Values overview of the refreshed People Strategy for 2024.
• R
eceived an update on the implementation of critical training interventions
linked to MTP and culture transformation program.
• R
eceived updates on progress on implementation of cultural transformation
intervention.
Stakeholder • R
eceived periodic updates from the management on key stakeholder
Engagement engagements.
Sustainability agenda • In line with the multifaceted Board’s role of ensuring that the organization
integrates sustainability considerations into its strategy, operations, and risk
management. The Board received periodic sustainability reports and covered
the topic as part of its discussion agenda.

NMB BANK PLC
What was on the Board’s agenda during 2023: (Continued)
Main Topic Sub-topic Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Strategy Bank Strategy • • •
CSI & ESG • • • •
Business and Financial Local/Region/global business
• • • •
Performance
Financial performance • • • • •
Other • • • •
Financial Results and accounts • • • •
Dividends •
Bank financial resource
• • •
planning
Risk Risk Function • • • •
Risk Appetite • • • •
Capital and liquidity adequacy • • • •
Regulatory Regulatory and legal matters • • • •
External External Insights • • • •
Technology Strategic and operational • • • •
People and Culture Purpose, engagements • • •
Policies • •
Performance •
Other • • • •
Governance Policies and Terms of Reference • • • •
Board/Committee effectiveness • •
Appointment and succession •
AGM and resolution •

NMB BANK PLC
18 CORPORATE GOVERNANCE AND MANAGEMENT OF THE SUBSIDIARY
The subsidiary (Upanga Joint Venture Company Limited) is 86.22% owned by the bank. The Board of
Directors (the “Board”) consists of three (3) Directors. Two Directors hold executive positions in the bank.
The Board takes overall responsibility for the company, including responsibility for identifying key risk
areas, considering, and monitoring investment decisions, considering significant financial matters, and
reviewing the performance of management business plans and budgets. The Board is also responsible
for ensuring that a comprehensive system of internal control policies and procedures is operative, and for
compliance with sound corporate governance principles.
The Board is required to meet at least four times a year. The Board delegates the day-to-day management
of the business to the Executive Directors, assisted by parent company professionals in the areas of
accounting and secretarial services as per the management service agreement. No sub-committee has
been formed for the subsidiary Board.
The Management of the Company is under the Executive Directors. Due to the minimal number of
transactions, the Company has no employees. The secretarial and other accounting services have
been outsourced to the parent company as per the management service agreement. As the volume of
transactions increases, the company shall review its structure and fill any identified gaps accordingly.
The following were the Board members of the Upanga Joint Venture Company Limited during the year
ended 31st December 2023
Date
Name Other Key Positions Age Nationality
Appointed
Chief Executive Officer,
1 Ruth Zaipuna 50 Tanzanian 15 July 2021
NMB Bank Plc.
Head; Finance and
2 Robert Mwita Reporting, NMB Bank 41 Tanzanian 15 July 2021
Plc.
Director, Nyumba ya
3 Mafuru Majura Sanaa and Culture 61 Tanzanian 15 July 2021
Limited.

NMB BANK PLC
19 EXECUTIVE COMMITTEE
The Management of the Bank is led by the Chief Executive Officer (CEO) assisted by the Executive
Committee (EXCO). Management of the bank at the date of the report consisted of the following:
Title Gender Qualification Responsibilities

Chief Executive Officer Female ACPA (T), MBA, Overall responsible for driving the bank’s corporate
Ruth Zaipuna CDIoDT strategy to deliver sustainable business growth.
Chief Financial Officer Male ACPA (T), MBA, Overall responsible for the financial management,
Juma Kimori CDIoDT regulatory reporting, tax compliance, general ledger
reconciliations, strategy and research, investor relations,
and accounting of the bank.
Chief Retail Banking Male ACPA (T), MBA, Overall responsible for development and execution of
Filbert Mponzi CDIoDT the Retail Banking Strategy fwor the bank, with focus on
delivering the best in-class innovative, customer centric
financial services for Individual, MSME and Agribusiness
customers that promote financial inclusion.
Chief Wholesale Banking Male ACCA, MBA, Overall responsible for large corporate customers and
Alfred Shao CDIoDT business, transactional business, government, and
international trade.
Treasurer Male MBA, ACI Leads the treasury department and supports the bank in
Aziz Chacha foreign exchange business, investment in securities and
market and liquidity risk management.
Chief Credit Officer Male Bachelor, Overall responsible for all credit department which
Daniel Mbotto* Business includes the appraisal of loans, portfolio management,
Management and collection of bad debts, ensuring a sound portfolio
Finance quality and training of credit department staff.
Certified Lender
Chief Human Resources Male MBA, Certified Overall responsible for development and execution
Officer Reward and of Human Resource strategy in support of the overall
Emmanuel Akonaay HR Practitioner, business plan and strategic direction of the bank and
and a CDIoDT providing the necessary guidance to the HR team in
strategy implementation.
Chief Technology and Male MBA Overall responsible for driving the bank’s digital and
Digital Transformation technology strategy.
Kwame Makundi
Chief Shared Services Female MBA, CDIoDT Overall responsible for shared services support ensuring
Nenyuata Mejooli conducive workplace across the bank, strategically
and operationally managing customer experience,
facilities, Business Continuity Management, operational
transformation, and management and execution of
strategic projects in the bank.
Chief Risk Officer Female MBA Overall responsible for sound monitoring, mitigating,
Doreen Joseph and reporting of the bank’s business risks in line with the
bank’s overall strategic ambitions.
Chief Compliance Officer Male CPA (T) Overall responsible for overseeing compliance
Ezekiel Herman monitoring in line with prevailing internal policies,
procedures, guidelines, and respective laws and
regulations.
Chief Internal Auditor Male ACPA, MSc, Overall responsible for managing Internal Audit and
Benedicto Baragomwa CISA, CDIoDT other assurance activities of the bank and reports to the
Board of Directors.
Acting Chief Credit Officer Male Bachelor of Overall responsible for all credit department which
Nishad Jinah* Science in includes the appraisal of loans, portfolio management,
Banking and and collection of bad debts, ensuring a sound portfolio
Finance quality and training of credit department staff.
Company Secretary Female LLB (Hons), Supporting the Board in ensuring the effective
Mwantumu Salum LLM Certified functioning of the Board and its committees, and
Compliance transparent engagement with senior management.
Officer
*Nishad Jinah was appointed Acting Chief Credit, succeeding Daniel Mbotto, effective from December 2023.

NMB BANK PLC
19 EXECUTIVE COMMITTEE (CONTINUED)
Executive Committee Key KPI as per CEO’s Scorecard
Title KPI
Chief Customers Perspective: The strategic focus on creating a superior customer
Executive experience has led in 2023 to an increase of primary customers of 1.2 million, which is
Officer well above the MTP target. The total number of customers that choose NMB as their
Ruth primary bank is 7.1 million, which is 20% higher than the year-end 2022.
Zaipuna
People Perspective: Create a well engaged workforce with high productivity. Bank’s
engagement scores trend at around 80%, in line with global benchmarks. Productivity
per staff has increased by 15% YoY to TZS 385m/FTE.
Financial Perspective: Drive solid business growth, with sustainable returns and value
creation.
KPI 2023 Actual 2023
Profit After Tax TZS 521 billion TZS 542 billion
Return on Equity 25% 28.8%
Return on Assets 5% 4.7%
NFI Contribution 33% 33.4%
Income Jaws 6% 7.6%
NPL 5% 3.2%
CIR 40% 39%
1. Risk & Regulatory: Maintain a stable risk and control environment.

2. Sustainability: Increase sustainable products
Sustainability: In line with the bank’s sustainability financing ambitions, the bank issued
a debut sustainable bond instrument of TZS 400 billion (dual tranche bond), dubbed
Jamii Bond. Attracting over 5,608 applicants, the TZS tranche was oversubscribed by
283%, while the dollar tranche also had a historic oversubscription of over 739%. This
historic mobilization makes the Jamii bond, the largest sustainability bond ever issued in
East and Central Africa region. The bond’s net proceeds will be used to finance eligible
green and social assets in line with the bank’s Sustainable Financing Framework (in
adherence to the ICMA Sustainability Bond Guidelines).
Risk and Governance Perspective: The bank maintained a stable risk and control
environment with key risk parameters trending within risk appetite thresholds. There
were no regulatory penalties during the year

NMB BANK PLC
19 EXECUTIVE COMMITTEE (CONTINUED)
Training and Development Program for the Management
The training covers fiduciary duties, responsibilities, and any unique aspects relevant to the business.
The primary goal is to ensure that the management has a clear understanding of their role in corporate
governance, enabling them to exercise sound and objective judgment about the bank’s affairs.
In 2023, the Executive Committee successfully completed planned training and development sessions.
• Central Bank Digital Currency (CBDC) Masterclass
• Customer Experience Operational Excellence
• The 10th Annual Governance Forum
• Africa Investment Event 2023
• Board and EXCO Development Program
• Brazil Study Tour
Compensation of Key Management Personnel
Annually, the Board conducts a thorough review and approval process for the compensation of key
management personnel. The remuneration for key management personnel in the current year amounted
to TZS 8.2 billion (compared to TZS 7.3 billion in 2022). Further details can be found in note 43 of the
financial statements.
20 STRATEGY AND BUDGETARY PERFORMANCE
Budget Process
Governing the overall budget process, the Budget and Strategy Guidelines prescribe the overall objectives,
timing, process, and methodologies that were used to formulate the bank’s budget for 2023. The key
objectives for the 2023 budget included providing business and financial commitments within strategic
pillars and optimizing the use of bank resources and productivity.
Budget approval process
The Bank adopts a collaborative approach to budget processes, which encompasses a consolidation of
bottom-up and top-down budget processes. The process starts with revenue, NPL and impairment, and
cost budget discussions at the Functional Level. Once a draft is finalized at functional levels, the budget
and strategy document undergo a three-layered approval process, namely;
1. Review and Approval of ExCo

2. Review and Approval by BARCC
3. Board Review and Approval
Budgetary Performance at Glance
Performance relative to the budget in 2023 showcased exceptional results and consistent expansion
despite market fluctuations. The Bank’s accomplishments stemmed from effectively aligning planned
activities with the bank’s overarching strategy, prevailing business conditions, and underlying assumptions.

NMB BANK PLC
20 STRATEGY AND BUDGETARY PERFORMANCE (CONTINUED)
Budgetary Performance at Glance (Continued)

The global dynamics highlighted heightened business challenges; despite that, the bank’s balance sheet
and revenue growth projected in 2023 strategy and budget was driven by:
• Continued focus on account opening, improving digital subscriptions and growth in the channel to
ensure optimal reachability of banking service. Account opening trending at 1.2 million new accounts
and over 8,000 new Wakala were onboarded during the year.
• Improved usage in digital platforms (Mkononi App, NMB Wakala and Internet Banking) and uptake on
value-add products (Mshiko Fasta, Lipa Mkononi and General insurance). This has been highly driven
by consistent digital and insurance campaigns (UMEBIMA & Teleza Kidijitali).
• Strengthened relationships with government, corporates, and SME customers, leading to execution
excellence in both credit and deposit mobilisation.
• Prudence in deals execution to ensure all risks are well mitigated, and the non-performing loan is
maintained below the regulatory limit of 5%.
• Continued investment in Technology and Human Capital through CAPEX investment of about TZS
26.7bn in Technology and capacity building for staff.
• The bank has continued to manage its operations efficiently, closing the year with a Cost to Income
Ratio of 39.0%.

NMB BANK PLC
Budgetary Performance at Glance (Continued)
Given the above considerations, the bank’s performance against the budget was as follows:
Key Actual Target Variance Remarks

Performance (TZS’ (TZS’
Indicator billion) billion)
Revenue 1,401 1,386 +1.1% The Bank surpassed the revenue target by TZS
18 billion to deliver TZS 1,401 billion in total
revenue against budgeted revenue of TZS 1,386
billion. and delivered an 18.0% year-on-year
growth.
Profit after Tax 541.7 521.4 +3.9% Record PAT of TZS 546.4bn largely driven
by strong revenue momentum, with a total
income up 1% YoY, coupled with prudent cost
management and improved portfolio quality.
Total Assets 12,220 11,866.4 +3.0% Growth is attributed to broad based balance
sheet growth driven loans and advances
increased by 28.1% YoY and deposits growth of
11.5% YoY.
Total Deposits 8,489.7 8,576.6 -1.0% Driven by an 8.1% increase in term deposits,
10.8% in personal account deposits, and 13.8%
in current account deposits due to various
deposit mobilization campaigns.
Net Loan & 7,706.9 7,015.7 +9.9% Growth is attributed to a 87.7% increase in
Advances Wholesale loans, a 15.9% rise in retail loans.
Return on 4.8% 4.8% 0bps Remarkable performance throughout the year,
average Asset contributing to profit growth.
Return on 28.8% 25.4% +340bps Exceptional performance driven by increased
Average Equity profits.
Cost to Income 39.0% 40.0% -10bps The bank demonstrated strong efficiency
Ratio levels owing to good progress along several
cost optimization initiatives, coupled with solid
revenue growth momentum.
Non- 3.2% 3.8% -60bps Overall improvement in NPL is credited to the
Performing growth of the quality portfolio. Strong credit
Loan Ratio risk management performance ensured a
commendable NPL, keeping us well below the
regulatory threshold of 5%, and furthermore
managed to contain impairment charges within
budget.
Off-Balance 2,416 2,100.4 15.03% Off-balance sheet growth of 23% year-on-year
sheet driven by 84% YoY growth in Guarantees from
increased sales across the network.

NMB BANK PLC
Awards and Achievements
Our performance has received both domestic and international acclamations. In 2023, NMB Bank
received 31 awards, and recognition for excellent performance, an increase of 35% year-on-year.
Below are the Awards won;
SN Awards From
1 Overall, Winner: Largest Taxpayer in Tanzania (All Sectors) Tanzania Revenue Authority
2 Overall, Winner: Most Compliant Taxpayer in Tanzania Tanzania Revenue Authority
3 Largest Taxpayer in the category of Financial Institutions in Tanzania Revenue Authority
Tanzania
4 Best Employer of the Year 2023, Runner-Up in the overall Association of Tanzania Employers
winner category
5 Best Private Sector Employer 2023, Runner-up Association of Tanzania Employers
6 Quality, Productivity, and Innovation Award. Association of Tanzania Employers
7 Best Employer - Gender Equality and Equity Award Association of Tanzania Employers
8 Best Bank in Tanzania 2023 Global Business & Finance
9 Safest Bank in Tanzania 2023 Global Business & Finance Magazine.
10 Best Bank for Digital Solutions in Tanzania Euromoney Awards for Excellence 2023
11 Best Innovation in Retail Banking in Tanzania Global Business Magazine
12 Best Retail Bank Tanzania 2023 International Business Magazine
13 Best Retail Bank Tanzania 2023 Global Business Magazine
14 Best Private Bank in Tanzania International Bankers Awards
15 Best Bank in Tanzania African Banking Awards: EMEA Finance
16 Best Innovation in Retail Banking in Tanzania International Bankers Awards
17 Best SME Bank Tanzania 2023 International Business Magazine
18 Best Investment Ban Tanzania 2023 Global Brands Magazine
19 African’s Banking CEO of the year 2023 (Tanzania) Africa Bank 4.0 Awards
20 Best Bank in Tanzania 2023 Award Africa Bank 4.0 Awards
21 Best Bank for CSR in Tanzania 2023 Euromoney Awards for Excellence 2023
22 Best Corporate Social Responsibility Initiative Tanzania 2023 Global Business & Finance Magazine.
23 Best Commitment to ESG Principles Tanzania 2023 International Banker 2023
24 Best Bank in Tanzania 2023 Euromoney Awards 2023
25 Best Private Bank for High-Net-Worth Individuals in Tanzania Euromoney Private Banking Awards
26 Best Retail Bank Tanzania 2023 Global Banking & Finance Awards
27 SME Financier of the Year Award Global SME Finance Awards 2023.
28 Best SME Bank Tanzania* World Economic Magazine
29 Best ESG Bank Tanzania 2023* World Economic Magazine
30 Best Bancassurance Provider Tanzania 2023* World Economic Magazine
31 Best Banking CEO Tanzania 2023* World Economic Magazine
Table10: Awards won in 2023, highlighted in grey, are locally won.

* NMB Bank was named a winner in four awards by the World Economic Magazine, which are yet to be delivered.

NMB BANK PLC
21 CORPORATE SOCIAL INVESTMENT (CSI)
e remain committed to supporting socioeconomic development by continuously investing and addressing

W
the most pressing challenges faced in society to create a sustainable and positive imprint. In 2023, the
bank allocated TZS 4.2 billion, 1% of the bank’s 2022 Profit After Tax, towards various CSI initiatives
across the pillars of education, health, financial literacy training, and disaster recovery.
Education Initiatives
The Bank’s commitment to fostering conducive learning environments in primary and secondary schools
nationwide remained steadfast in the reporting year. A significant milestone was achieved through the
provision of 15,500 desks to 247 schools, benefiting over 46,500 students. Roofing materials were
also supplied to 75 schools, including educational and healthcare facilities, aiding in the completion
of construction and renovation projects. Additionally, 34 schools received 1,480 double-decker beds,
positively impacting 2,960 boarding students. Furthermore, 140 computers were distributed to 25 schools,
addressing fundamental ICT needs for students.

In addition, the NMB Foundation launched the Nuru Yangu Scholarship, which provided sponsorship to
65 students. This initiative involved an expenditure of around TZS 435.5 million, encompassing various
expenses such as tuition fees, health insurance, accommodation, peripherals, and allowances.
Moreover, the Bank allocated TZS 600 million towards the construction of Makunduchi Nursery School.
This noteworthy project was inaugurated by Her Excellency, the President of the United Republic of
Tanzania, HE. Dr. Samia Suluhu Hassan, during the Kizimkazi Festival in August 2023. The project
comprises five classrooms, a playground, a kitchen, and a canteen, with completion anticipated in
February 2024.
Healthcare Support

Investment in quality hospital items, including hospital beds, delivery beds, bedsheets, and blood pressure
machines, underscored the bank’s commitment towards driving universal maternal health coverage. A
total of 55 public health facilities, including prominent institutions like Muhimbili National Hospital, MOI,
Bugando Hospital, and KCMC, received support, benefiting over 300,000 patients.
Muhimbili National Hospital
We successfully handed over the renovation project at Muhimbili National Hospital in 2023, where Minister
of Health, Hon. Ummy Mwalimu, graced the event. We signed the MOU to renovate the maternity block,
which is now called the NMB Maternity block. We spent TZS 350 million towards the renovation of the
maternity block followed by the provision of normal hospital beds, delivery beds, electrical ICU beds, bed
covers, ward separators, blood pressure machines and other important equipment in demand. We have
signed a three-year agreement toward renovation and maintenance of the maternity block.
Financial Literacy Initiatives
NMB continued to empower vulnerable groups - youth, women, and small businesses lacking knowledge
and access to financial services. The dissemination of financial literacy extended to school programs and
business club training, reaching over 260,000 youth and adults.

NMB BANK PLC
21 CORPORATE SOCIAL INVESTMENT (CSI) (CONTINUED)
Natural Disaster Recovery Efforts
Responding to adverse climate conditions causing disasters, the bank allocated over TZS 70 million for
recovery efforts. Immediate support was extended to victims of heavy floods and landslides in Hanang,
Manyara, and Kilosa in Morogoro. Relief items such as mattresses, blankets, and food were provided.
Additionally, rehabilitation support was extended to Hasnuu Makame Secondary School in Zanzibar,
which was recovering from a fire outbreak, and Mihingo Primary School in Mara, where heavy rains
damaged the roofing.
Supporting Persons with Disability
Assisting individuals with disabilities stands as a pivotal pillar in cultivating a society that is both inclusive
and equitable. Throughout the year, the bank dedicated TZS 17.9 million to procure assistive devices,
extending crucial support to Persons with Disabilities. Our commitment is demonstrated through providing
essential tools such as white canes, sunscreen, wheelchairs, sunhats, and hand magnifiers specifically
designed for individuals with albinism. These efforts aim to generate a positive impact by enriching their
access to vital resources, thereby contributing to an overall improvement in their well-being.
Employee Volunteerism and Engagement
We recognize the contributions of our staff to the creation of value that helps strengthen our business
relations with customers and the communities. NMB encourages a giving culture, and its employees
voluntarily contribute funds to support causes through their own as a means of making a difference in
the community. In 2023, 180 branches and departments participated in community work through the CSI
Matching Up Initiative and positively impacted the lives of over 20,300 people with different needs across
the country.
NMB Equality Initiative
NMB Equality Initiatives reflect a commitment from Dr Samia Suluhu Hassan, the President of the
United Republic of Tanzania, to spearhead the implementation of the Generation Equality Forum (GEF),
specifically under the second action coalition on Economic Justice and Rights, established in 2021. The
nation is dedicated to achieving milestones in gender equality and women’s empowerment. In September
2021, the Tanzania Generation Equality Program (TGEP) 2021-2026 was inaugurated, with Hon. Angellah
Kairuki appointed as the Chairman and Ms. Ruth Zaipuna, the CEO of NMB Bank, serving as a member
of TGEP.
Within NMB, the NMB Balance initiative drives the agenda. NMB Balance operates as an internal forum,
concentrating on cultivating a workplace environment that nurtures diversity and inclusion. Its primary
focus lies in advancing aspects such as work-life balance, welfare, talent, and skills, reaffirming the
bank’s dedication to establishing an inclusive and equitable environment by harnessing diversity both
within and beyond the organization.
As of July 2023, TGEP marked the midway point in the five-year GEF commitments. The committee,
overseen by the Ministry for Gender, compiled a comprehensive report outlining the progress made,
identifying opportunities, and addressing challenges encountered during the review period. This report
was presented at the UN GEF Summit held in New York on September 17, 2023. Additionally, NMB
submitted a report to the Ministry responsible for Gender, detailing initiatives crafted to uphold Generation
Equality’s commitment.

NMB BANK PLC
22 ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG)
NMB, through its efforts seek to fulfill its goal of being a strategic ally in the economic, environmental, and
social development of Tanzania. 2 billion was budgeted and approved by the board to embark on climate
change and sustainability projects.
In recognition of our responsibilities as a vehicle for sustainable social-economic prosperity in Tanzania,
our goals extend beyond economic and financial dimensions, to include environmental, social, and
governance challenges. Observing the principles of sustainable banking, NMB as a responsible bank,
aims to promote the United Nations’ Sustainable Development Goals (SDGs) through provision of
products and services and its business operations, all undertaken with a sense of social and environmental
responsibility and stewardship.
ESG Key metrics and progress reproduced from the Annual Report subject to Independent Limited
Assurance:
2023 ESG And Sustainability Highlights
Category Parameter measured/monitored Progress made

Environmental/Climate Change
Climate Action Value of Climate & Sustainability projects budget TZS 2 million
Climate Action Conferences supported COP28, NBS 2
Number of trees planted of tree planting initiatives supported 1.2 million
Beehives donated to beekeeping groups 500
Beekeeping Groups supported 15
Energy Efficiency Electrical energy consumption reduction 14%

Number of branches using LED lighting Over 175
Percentage of branches and training center using LED lighting 100%
Water management- percentage of water use reduction n/a
Clean Energy Number of Motor Vehicles converted to use CNG 8

transition
Recycling and Waste Volume of paper waste recycled n/a

management
Agricultural Support Number of Agricultural Loans provided 10,734

Value of Agricultural loans TZS 558 billion
Value of Special Agriculture Fund at 9% interest rate TZS 250 billion
Community/Social
Impact to the Value of Corporate Social Responsibility budget spent 2023 TZS 4.2 billion
Community
Donation toward Muhimbili Maternity Ward TZS 350 million
Education Impact Number of Scholarship offered 64
through Foundation

NMB BANK PLC
22 ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) (CONTINUED)
2023 ESG And Sustainability Highlights
Diversity, Equality, Percentage of Women employees in the total workforce 48%

and Inclusion (DEI)
Percentage of women in Senior Leadership positions 32%
Percentage of Youth in the workforce 34.80%
Percentage of Staff with Disabilities 11
Certified as EDGE Access for upholding Gender Equality at Edge (Assess)
workplace Certified.
Women Proposition Number of NMB customers who are women 2,405,138

(Jasiri) statistics
Percentage of Women Customers in the NMB customer base 35%
Value of loans disbursed to women TZS 953 billion
Number of youth customers 3,252,808
Percentage of Youth active customers 70%
Number of youths reached through the GO NMB program Over 652,000
Number of women reached through the Jasiri Business Clubs and 7,000
provided Financial Literacy
Jamii Bond Issuance Sustainable Framework developed 1

Jamii bond proceeds collected TZS 400 billion
Financial Inclusion Total number of NMB customers 7.2 million

Total Number MSME customers 386,417
Total value lends to MSME customers TZS 980 billion
Total Value of transaction through Wakala TZS 55 trillion
Total Value of transaction through Alternative Channels 95%
Working Conditions Introduction of Equal Pay Policy Continuous

Upholding the Flexible working Policy Continuous
Upholding the Diversity and Inclusion Policy Continuous
Upholding the Non-Discrimination Policy Continuous
ATE 2023 awards 4
Governance
Training and Number of bank’s leaders trained on Executive Sustainability 408
Capacity Building
Staff received Senior Women Leadership training in 2022 66
Ethical Standards Number of staff trained on Anti Money Laundering 4005
Number of staff trained on the Code of Conduct 4048
Board Independence Percentage of Board Members who are independent 33%

and Composition
Sustainability Sustainability Steering Committee in Operation. Operational
Governance
Periodic Sustainability Updates to the Board On track

NMB BANK PLC
23 RELATED PARTY TRANSACTIONS
All related party transactions and balances are disclosed in note 43 to the financial statements.
24 SERIOUS PREJUDICIAL MATTERS
In the opinion of the Directors, there are no serious unfavourable matters that can affect the bank (2022:
NIL).
25 POLITICAL CONTRIBUTIONS AND DONATIONS
The Bank did not make any political donations during the year (2022: NIL)
26 BANK COMMUNICATION/PUBLIC RELATIONS POLICY
The primary objective of the bank Communication/Public Relations Policy is to ensure that information
originating from the bank is accurate and complete, reflects the official position of the bank, and is released
to the media and targeted public consistently and in a timely manner. The overarching goal is to cultivate
a mutually beneficial relationship between the bank and the public. The Board has established effective
communication channels with the bank’s stakeholders, including the media and other relevant channels.
Key stakeholder communication initiatives encompass the bank’s Annual Report, quarterly financial
reports, Investor presentations, and various publications. Stakeholders can access comprehensive
information, including general details about the bank and its subsidiaries, through the bank’s official
website: www.nmbbank.co.tz. This platform serves as a centralized resource for stakeholders to review
all publications and stay informed about the bank’s activities.
27 ACCOUNTING POLICIES
The material accounting policies of the bank disclosed in Note 6 to the financial statements have been
approved by the Board. The material accounting policies have been updated to reflect the new and
revised International Financial Reporting Standards (IFRSs) in Note 5.
28 INTERNAL AUDIT FUNCTION
The Bank has an independent Internal Audit function reporting to the Board Audit Risk and Compliance
Committee (BARCC).
29 STATEMENT OF COMPLIANCE WITH TFRS-1
This report on Those Charged with Governance complies with the provisions of TFRS-1.

NMB BANK PLC
30 REMUNERATION POLICIES
The Bank places a greater emphasis on a well-defined approach to remuneration, encompassing not
only its staff but also its directors. The Remuneration Policy is embedded in the bank’s overarching
strategy and linked to individual performance metrics. This alignment ensures that the policy not only
reflects the current market demands and industry benchmarks but also remains adaptive to the dynamic
nature of the business landscape. To maintain its relevancy and competitiveness, the policy undergoes
a meticulous annual review, providing the necessary flexibility to address emerging trends and evolving
market conditions.
In the customary process, the Management conducts an extensive market survey to prepare a proposal
delineating fees and other emoluments for the Directors. This proposal undergoes a rigorous evaluation
by the Board to ensure alignment with the bank’s strategic objectives and is subsequently presented for
approval at the Annual General Meeting (AGM).
31 WHISTLEBLOWING POLICY
NMB Bank’s Whistleblowing Policy plays a pivotal role in cultivating an unwavering ethical and conduct
culture. The bank is resolutely committed to upholding the pinnacle of standards in ethical and legal conduct
across its projects, programs, and businesses. In perfect alignment with this unwavering commitment
and to underscore its dedication to good governance and transparency, the Policy establishes a well-
structured mechanism for raising concerns related to fraud, corruption, or any other misconduct, without
fear of victimization. Significantly, it ensures unequivocal protection for individuals disclosing information
related to such misconduct, unequivocally shielding them from any form of retaliation.
The policy precisely outlines the procedures for both employees and non-employees to report concerns or
suspicions regarding potential violations of laws, rules, or regulations, as well as suspected wrongdoing in
internal bank policies, standards, or procedures. It is imperative to underscore that the Whistleblower and
Witness Protection Act of 2015 categorically prohibits employers from retaliating against whistleblowers.
Staff members receive periodic training, including during induction and ongoing development, emphatically
underscoring the paramount importance of bringing forth information that profoundly contributes to the
enforcement of sterling corporate governance practices. The bank also provides a dedicated whistleblower
section on its website, where customers and other stakeholders are resolutely encouraged to report
misconduct through a diverse array of channels, whether internal or external. Independent third parties,
known for their impartiality, are readily available for reporting. Importantly, whistleblowers are empowered
with the unequivocal option to disclose their identity or choose to remain anonymous, thereby granting
them a formidable voice in upholding the ethical standards within the bank.
32 RESPONSIBILITIES OF AUDITORS
The auditor is responsible to consider material and consistency of the information in the report of those
charged with governance with the financial statements, or their knowledge obtained in the audit or
otherwise and report any material inconsistency.

NMB BANK PLC
33 AUDITORS
Our external auditor (Deloitte & Touche) has been appointed in accordance with Section 170(2) of the
Companies Act, No.12 of 2002 and as per the ‘Banking and Financial Institutions (External Auditors)
Regulation, 2014, section 5. Deloitte & Touche was appointed for a three-year period from 2022 following
a competitive bidding process as required by Banking and Financial Institutions (External Auditors)
Regulation, 2014, subject to annual assessments.
Following assessments for their performance for the year ended 2022, Deloitte & Touche was approved
at the Annual General Meeting held in June 2023 to continue as external auditor for the year ending 2023.
Deloitte & Touche, with PF No 025 and TIN 100-148-692, is an audit firm registered by the National Board
of Accountants and Auditors of Tanzania (NBAA).
Deloitte & Touche,

3rd Floor Aris House,
Plot 152 Haile Selassie Road,
Oyster Bay,
P.O. Box 1559,
Dar es Salaam, Tanzania.
Telephone: +255 (22) 216 9000
Fax: +255 (22) 2600922
Email. [email protected]
Website: www.deloitte.com
Tin Number: 100-148-692
34 STATEMENT OF RESPONSIBILITY BY THOSE CHARGED WITH GOVERNANCE
It is the solemn duty of those charged with governance to prepare the financial statements of the bank.
These statements are mandated to present a true and fair view, adhering strictly to applicable standards,
rules, regulations, and legal provisions. This responsibility encompasses the entirety of the financial
year, commencing from its initiation until the date of approval of the audited financial statements by
those charged with governance. The obligation extends to all individuals who assumed the role of those
charged with governance at any point during the period covered by the financial statements.
BY ORDER OF THE BOARD OF THOSE CHARGED WITH GOVERNANCE
SIGNED ON ITS BEHALF BY:
27th March 2024

Dr. Edwin P. Mhede
Date
Chairman

NMB BANK PLC
STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The Companies Act, Cap. 212 (as amended) requires the Directors to prepare financial statements for each
financial year that give a true and fair view of the state of affairs of the bank and of the Group at the end of the
financial year and of the profit or loss for the year. It also requires the Directors to ensure that the bank and its
subsidiary keep proper accounting records that disclose, with reasonable accuracy, the financial position of
the bank and the group. They are also responsible for safeguarding the assets of the bank and the group and
hence taking reasonable steps for the prevention and detection of fraud, error, and other irregularities.
The Directors accept responsibility for the financial statements herein, which have been prepared using
appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity
with the International Financial Reporting Standards (IFRS) and a manner required by the power conferred
upon The Companies Act, Cap. 212 (as amended), and The Banking and Financial Institutions Act, 2006.
he Directors are of the opinion that the financial statements give a true and fair view of the state of the financial
T
affairs and of its operating results of the bank and the Group. The Directors further accept responsibility for the
maintenance of accounting records that may be relied upon in the preparation of financial statements, as well
as designing, implementing, and maintaining internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement whether due to fraud or error.
othing has come to the attention of the Directors to indicate that the bank and the Group will not remain a
N
going concern for at least twelve months from the date of this statement.
Signed on behalf of the Board of Directors by:
27th March 2024
Dr. Edwin P. Mhede Date

Chairman

NMB BANK PLC
DECLARATION OF THE CHIEF FINANCIAL OFFICER

The National Board of Accountants and Auditors (NBAA), according to the power conferred under the Auditors
and Accountants (Registration) Act. No. 33 of 1972, as amended by the Act No. 2 of 1995, requires the financial
statements to be accompanied by a declaration issued by the Head of Finance/Accounting responsible for the
preparation of financial statements of the entity concerned.
It is the duty of a Professional Accountant to assist the Board of Directors in discharging the responsibility of
preparing financial statements of an entity showing a true and fair view of the entity’s financial position and
performance in accordance with applicable International Financial Reporting Standards (IFRS) and statutory
financial reporting requirements. Full legal responsibility for the preparation of financial statements rests with
the Board of Directors as per the Statement of Directors’ Responsibility on page 265.
I, Juma A. Kimori, being the Chief Financial Officer of NMB Bank Plc, hereby acknowledge my responsibility of
ensuring that the bank and the group’s financial statements for the year ended 31 December 2023 have been
prepared in compliance with the International Financial Reporting Standards (IFRS), the requirements of the
Companies Act, Cap. 212 (as amended) and the Banking and Financial Institutions Act, 2006.
I thus confirm that the financial statements give a true and fair view of the financial performance of NMB Bank
Plc for the year ended 31 December 2023 and its financial position as of that date and that they have been
prepared based on properly maintained financial records.
27th March 2024

CPA Juma Ajuang Kimori
Date
Chief Financial Officer
NBAA Membership number: ACPA 3755

Deloitte & Touche
Certified Public Accountants
ARiS House,3rd Floor,
Haile Selassie Road, Oysterbay
PO Box 1559
Dar es Salaam
Tanzania
Tel: +255 (22) 216 9000

Fax: 255 (22) 211 6379
Email: [email protected]
www.deloitte.com
INDEPENDENT AUDITOR’S REPORT

TO THE SHAREHOLDERS OF NMB BANK PLC
Report on the Audit of the Consolidated and Separate Financial Statements
Opinion
We have audited the separate financial statements of NMB Bank Plc (the “Bank”) and the consolidated
financial statements of the Bank and its subsidiary (together, the “Group”) set out on pages 272 to 411,
which comprise the consolidated and separate statements of financial position at 31 December 2023 and
consolidated and separate statements of profit or loss and other comprehensive income, consolidated and
separate statements of changes in equity and consolidated and separate statements of cash flows for the
year then ended, and notes to the consolidated and separate financial statements, including a summary
of material accounting policy information.
In our opinion, the accompanying consolidated and separate financial statements give a true and fair view
of the financial position of the Group and of the Bank as at 31 December 2023 and of their financial
performance and cash flows for the year then ended in accordance with International Financial Reporting
Standards (“IFRSs”), the requirements of the Companies Act, 2002 and the Banking and Financial
Institutions Act, 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Consolidated and Separate Financial Statements section of our report. We are independent of the
Group and the Bank in accordance with the National Board of Accountants and Auditors (NBAA) Code of
Ethics which is consistent with the International Ethics Standards Board for Accountants’ International
Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code),
together with the ethical requirements that are relevant to our audit of the financial statements in
Tanzania and we have fulfilled our other ethical responsibilities in accordance with these requirements and
the IESBA Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the consolidated and separate financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated and separate financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Partners: F.J. Kibiki Y.F Kasenge M.R Richard
Associate of Deloitte Africa, a Member of Deloitte Touche Tohmatsu Limited

INDEPENDENT AUDITOR’S REPORT (CONTINUED)
Key Audit Matters (Continued)
Key audit matter How our audit addressed the matter

Estimation of Expected Credit Losses on loans Our audit of the Expected Credit Losses of loans
and advances to customers and advances to customers included, amongst
others, the following audit procedures performed
Loans and advances to customers constitute a together with the assistance of our internal credit
significant portion of the total assets of NMB Bank risk specialists:
Plc. As disclosed in notes 6(f), 7(I), 9.1 and 23 of
the consolidated and separate financial • Obtained an understanding of the Bank’s
statements, management exercise significant methodology for determining Expected Credit
judgment when determining both when and how Losses (ECL), including enhancements in the
much to record as Expected Credit Losses. This is year, and evaluated it against the requirements
because a number of significant assumptions and of IFRS 9, Financial Instruments;
inputs go into the determination of Expected • Testing the design and implementation of
Credit Loss (ECL) amounts on loans and advances critical controls on ECL-related processes,
to customers as required by IFRS 9, Financial particularly the allocation of assets into stages
Instruments. and management overlays;
• On a sample of contracts, we assessed the
The key areas where we identified greater levels of identification of loans and advances that had
management judgment and therefore increased experienced a significant increase in credit risk
levels of audit focus in the Bank’s implementation or met the Bank's default definition criteria for
of IFRS 9 include: classification purposes. This was completed by
reviewing documentation and credit
• The judgments made to determine the performance to determine whether the staging
categorisation (staging) of individual loans and of such facilities was in accordance with Bank’s
advances accounts in line with IFRS 9. In policy and IFRS 9 standards;
particular, the identification of a Significant • Assessed the reasonableness of management
Increase in Credit Risk (“SICR”) and Default overlays, taking into account industry and client-
require consideration of quantitative and specific risk. We recalculated the management
qualitative criteria. This is a key area of overlays and assessed their completeness in
judgement as this determines whether a 12- light of our understanding of the model and
month or lifetime Probability of Default is used; data limitations;
• Tested the assumptions, inputs and formulae
• Where there is uncertainty in respect of the used in the ECL models with the support of our
respective models’ ability to address specific internal credit risk specialists (including
trends or conditions due to inherent limitations assessing the appropriateness of model design
of modelling based on past performance, the and formula used, considering alternative
timing of model updates, and macroeconomic modelling techniques and recalculating the
events, additional provisions are made via Probability of Default, Loss Given Default and
management overlays. Significant judgement Exposure at Default;
was made in determining the management • We corroborated the assumptions used for the
overlays; determination of forward-looking information
(FLI) in the models using publicly available
• Identification and measurement of economic information;
scenarios to measure ECLs on a forward- • Tested the data used in the ECL calculation by
looking basis reflecting a range of future reconciling to source systems; and
economic conditions; and • Assessed the adequacy and appropriateness of
disclosures for compliance with IFRS and
requirements of Bank of Tanzania.

Key Audit Matters (Continued)
Key audit matter How our audit addressed the matter

• Modelling for estimation of ECL parameters: Based on the procedures described above, our
audit evidence was consistent with the inputs in
• Probabilities of Default (PDs) the ECL on loans and advances to customers which
• Loss Given Default (LGD); and were found to be within an acceptable range in the
• Exposure at Default (EAD). context of IFRS 9.
Because of the significance of these estimates,

judgments and the size of loans and advances to
customers portfolio, the audit of Estimation of
Expected Credit Losses on loans and advances to
customers is considered a key audit matter.
Other Information
The Directors are responsible for the other information. The other information comprises Index to the
Notes, List of Abbreviations, Corporate Information, The Report of Those Charged With Governance,
Statement of Directors’ Responsibilities and Declaration of the Chief Financial Officer but does not include
the consolidated and separate financial statements and our auditor’s report thereon, which we obtained
prior to the date of this auditor’s report, and the Annual Report, which is expected to be made available to
us after that date.
Our opinion on the consolidated and separate financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to
read the other information identified above and, in doing so, consider whether the other information is
materially inconsistent with the consolidated and separate financial statements, or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
When we read the Annual Report which will be made available to us after the date of this auditor’s report,
if we conclude that there is a material misstatement therein, we are required to communicate the matter
to those charged with governance.
Responsibilities of the Directors for the Consolidated and Separate Financial Statements
The Directors are responsible for the preparation and fair presentation of the consolidated and separate
financial statements in accordance with International Financial Reporting Standards, the requirements of
the Companies Act, 2002 and the Banking and Financial Institutions Act, 2006, and for such internal control
as the Directors determine is necessary to enable the preparation of consolidated and separate financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, the Directors are responsible for assessing
the Group’s and the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless the Directors either intend to
liquidate the Group and/or Bank or to cease operations, or have no realistic alternative but to do so.
The Directors are responsible for overseeing the Bank and the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional
skepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the consolidated and separate financial
statements, whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s and the Bank’s internal control.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors.
● Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s and the Bank’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated and separate financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group and the Bank to cease to continue as a going concern.
● Evaluate the overall presentation, structure and content of the consolidated and separate financial
statements, including the disclosures, and whether the consolidated and separate financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the Group audit. We remain
solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.

Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
(Continued)
From the matters communicated with the Directors, we determine those matters that were of most
significance in the audit of the consolidated and separate financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal Requirements
As required by the Companies Act, 2002, we report to you, based on our audit, that:
i) we have obtained all the information and explanations, which to the best of our knowledge and belief,
were necessary for the purpose of our audit;
ii) in our opinion, proper books of account have been kept by the Group and the Bank, so far as appears
from our examination of those books; and
iii) the Bank’s consolidated and separate statement of financial position (balance sheet) and consolidated
and separate statement of profit or loss and other comprehensive income (profit and loss account)
are in agreement with the books of account.
The engagement partner responsible for the audit resulting in this independent auditor’s report is F.J. Kibiki.
Deloitte & Touche

28 March 2024
Signed by: F.J. Kibiki
NBAA Registration No. ACPA-PP 3214
Dar es Salaam

NMB BANK PLC
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Note 2023 2022

TZS’ TZS’
Millions Millions
Interest income 10 1,179,592 953,656

Interest expense 11(a) (242,354) (164,020)
Net interest income 937,238 789,636
Credit/(charges) – loans and advances 12(a) (84,350) (81,067)

Credit/(charges) – other 12(b) (85) (113)
Total credit/(charges) (84,435) (81,180)
Net interest income after impairment 852,803 708,456
Fee and commission income 13 469,306 419,189

Fee and commission expense 13 (102,819) (94,260)
Net fee and commission income 366,487 324,929
Realized gain on Investment Securities 24 7,527 5,353

Foreign exchange income 65,835 48,071
Other income 14(a) 28,531 23,779
Total operating income 1,321,183 1,110,588
Employee benefits expense 15 (297,923) (266,296)

Other operating expenses 16(a) (199,015) (175,489)
Depreciation and amortization 17(a) (49,444) (53,638)
Total operating expenses (546,382) (495,423)
Profit before tax 774,801 615,165

Income tax expense 18(a) (229,594) (183,493)
Profit for the year 545,207 431,672
Attributable to
Owners of the Bank 544,890 431,531
Non-controlling interests 317 141

NMB BANK PLC
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Note 2023 2022

TZS’ TZS’
Millions Millions
Other comprehensive income, net of tax
Items that may subsequently be reclassified to profit or loss:
Fair value gain on debt instruments at FVOCI – net of tax 37 (iii) 464 522
Total comprehensive income for the year 545,671 432,194
Attributable to:
Owners of the Bank 545,354 432,053
Non-controlling interests 317 141
TZS/share TZS/share
Basic and diluted earnings per share 19(a) 1,089.78 863.06

NMB BANK PLC
BANK’S STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Note 2023 2022

TZS’ TZS’
Millions Millions
Interest income 10 1,179,592 953,656

Interest expense 11(b) (246,077) (167,307)
Net interest income 933,515 786,349
Credit/(charges) – loans and advances 12(a) (84,350) (81,067)

Credit/(charges) – other 12(b) (85) (113)
Total Impairment charge (84,435) (81,180)
Net interest income after impairment 849,080 708,456
Fee and commission income 13 469,306 419,189

Fee and commission expense 13 (102,819) (94,260)
Net fee and commission income 366,487 324,929
Realised gain on Investment Securities 24 7,527 5,353

Foreign exchange income 65,835 48,071
Other income 14(b) 28,556 23,804
Total operating income 1,317,485 1,107,326
Employee benefits expense 15 (297,923) (266,296)

Other operating expenses 16(b) (198,866) (174,910)
Depreciation and amortization 17(b) (50,329) (54,509)
Total operating expenses (547,118) (495,715)

Income tax expense 18(b) (228,599) (182,235)

NMB BANK PLC
BANK’S STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Note 2023 2022

TZS’ TZS’
Millions Millions
Other comprehensive income, net of tax
Items that may subsequently be reclassified to profit or loss:
Fair value gain on debt instruments at FVOCI – net of tax 37 (iii) 464 522
TZS/share TZS/share
Basic and diluted earnings per share (TZS) 19(b) 1,083.54 858.75

NMB BANK PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER
Note 2023 2022

Assets TZS’ Millions TZS’ Millions
Cash and balances with Bank of Tanzania 21 1,340,934 1,551,341
Placements and balances with other banks 22 336,759 186,941
Loans and advances to customers 23 7,706,925 6,014,603
Investment securities
- At amortised cost 24(a) 2,245,260 1,915,254
- At FVOCI 24(b) 28,345 28,778
Equity investment at FVOCI 25(a) 2,920 2,920
Other assets 26(a) 145,701 200,868
Current tax assets 18(c) 10,969 3,882
Property and equipment 27(a) 180,846 175,137
Intangible assets 28 37,347 18,290
Right-of-use assets 29(a) 25,232 27,063
Deferred income tax assets 30(a) 118,324 109,475
Total assets 12,179,562 10,234,552
Liabilities
Deposits due to other banks 32 15,008 12,445
Deposits from customers 31(a) 8,465,608 7,594,832
Other liabilities 33(a) 194,044 148,206
Lease liabilities 29(c) 28,844 30,586
Provisions 34 2,431 2,079
Borrowings 35 1,380,193 749,354
Current tax liabilities 18(c) - 5,602
Deferred income tax liability 30(b) 857 1,418
Total liabilities 10,086,985 8,544,522
Capital and reserves
Share capital 37(i) 20,000 20,000
Retained earnings 2,066,586 1,664,821
Fair valuation reserve 37(iii) 1,550 1,086
Capital and reserves attributable to owners of the parent 2,088,136 1,685,907
Non-controlling interest 4,441 4,123
Total equity 2,092,577 1,690,030
Total equity and liabilities 12,179,562 10,234,552
The financial statements on pages 272 to 411 were approved and authorised for issue by the Board of
Directors and were signed on its behalf by:
Dr. Edwin P. Mhede 27th March 2024

Chairman

NMB BANK PLC
BANK’S STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER
Note 2023 2022

Assets TZS’ Millions TZS’ Millions
Cash and balances with Bank of Tanzania 21 1,340,934 1,551,341
Placements and balances with other banks 22 336,759 186,941
Loans and advances to customers 23 7,706,925 6,014,603
Investment securities
- At amortised cost 24(a) 2,245,260 1,915,254
- At FVOCI 24(b) 28,345 28,778
Equity investment at FVOCI 25(a) 2,920 2,920
Investment in subsidiary 25(b) 39,639 39,639
Other assets 26(b) 143,260 199,061
Current tax assets 18(d) 7,783 -
Property and equipment 27(b) 153,056 145,316
Intangible assets 28 37,347 18,290
Right-of-use assets 29(b) 60,325 65,072
Deferred tax assets 30(a) 118,324 109,475
Total assets 12,220,877 10,276,690
Liabilities
Deposits due to other banks 32 15,008 12,445
Deposits from customers 31(b) 8,474,678 7,600,147
Other liabilities 33(b) 199,706 153,769
Lease liabilities 29(d) 65,193 68,733
Provisions 34 2,431 2,079
Borrowings 35 1,380,193 749,354
Current tax liabilities 18(d) - 5,602
Total liabilities 10,137,209 8,592,129
Capital and reserves

Share capital 37 (i) 20,000 20,000
Fair valuation reserve 37 (iii) 1,550 1,086
Total equity 2,083,668 1,684,561
Total equity and liabilities 12,220,877 10,276,690
The financial statements on pages 272 to 411 were approved and authorised for issue by the Board of
Directors and were signed on its behalf by:
Dr. Edwin P. Mhede 27 March 2024

Chairman

NMB BANK PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the parent
Share capital Retained Fair valuation Total TZS’ Non- Total equity
TZS’ Millions earnings TZS’ reserve Millions controlling TZS’ Millions
Millions TZS’ Millions interest TZS’
Millions
At 1 January 2023 20,000 1,664,821 1,086 1,685,907 4,124 1,690,031
Profit for the year

Other comprehensive income (OCI) - 544,890 - 544,890 317 545,207
Gain of fair valuation - - 663 663 - 663
Deferred tax on OCI - - (199) (199) - (199)
Total comprehensive income - 544,890 464 545,354 317 545,671
Transactions with owners

Dividends paid for the year 2022 - (143,125) - (143,125) - (143,125)
At 31 December 2023 20,000 2,066,586 1,550 2,088,136 4,441 2.092.577

NMB BANK PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the parent

Share capital Retained Fair valuation Total Non-con- Total equity
TZS’ Millions earnings reserve TZS’ Millions trolling TZS’ Millions
TZS’ Millions TZS’ Millions interest
TZS’ Millions
At 1 January 2022 20,000 1,330,091 564 1,350,583 3,983 1,354,566
Profit for the year

Other comprehensive income (OCI) - 431,531 - 431,531 141 431,672
Gain of fair valuation - - 790 790 - 790
Deferred tax on OCI - - (268) (268) - (268)
Total comprehensive income - 431,531 522 432,053 141 432,194

Dividends paid for the year 2021 - (96,729) - (96,729) - (96,729)
At 31 December 2022 20,000 1,664,821 1,086 1,685,907 4,124 1,690,031

NMB BANK PLC
BANK’S STATEMENT OF CHANGES IN EQUITY
Share capital Retained Fair valuation Total equity

TZS’ Millions earnings reserve TZS’ Millions
TZS’ Millions TZS’ Millions
At 1 January 2023 20,000 1,663,475 1,086 1,684,561

Comprehensive income
Profit for the year - 541,768 - 541,768
Other comprehensive income (OCI)
Gain of fair valuation - - 663 663
Deferred tax on OCI - - (199) (199)
Total comprehensive income - 541,768 464 542,232

Dividends paid for the year 2022 - (143,125) - (143,125)
At 31 December 2023 20,000 2,062,118 1,550 2,083,668
At 1 January 2022 20,000 1,330,828 564 1,351,392
Comprehensive income
Profit for the year - 429,376 - 429,376
Other comprehensive income (OCI)

Gain of fair valuation - - 790 790
Deferred tax on OCI - - (268) (268)
Total comprehensive income - 429,376 522 429,898
Dividends paid for the year 2021 - (96,729) - (96,729)
At 31 December 2022 20,000 1,663,475 1,086 1,684,561

NMB BANK PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
2023 2022*
Note
Cash (used in)/generated from operations 39(a) (51,850) 53,422

Interest received 24(a) & (b) 212,093 157,116
Interest paid 29(c) & 35 (66,301) (42,721)
Tax refund 18(c) - 11,746
Tax paid 18(c) (251,330) (188,256)
Net cash used in operating activities (157,388) (8,693)
Cash flows from investing activities

Proceeds from government securities 24(a) 607,278 505,734
Investment in government securities 24(a) (932,548) (721,384)
Purchase of property and equipment 27(a) (41,041) (20,690)
Purchase of intangible assets 28 (22,903) (9,394)
Proceeds on disposal of property and equipment 691 592
Lease acquisition - (3,368)
Dividends received 14 55 50
Net cash used in investing activities (388,468) (248,460)
Cash flows from financing activities

Proceeds received from borrowings 35 785,238 427,518
Principal repaid on borrowings 35 (190,353) (174,141)
Dividends paid 21 (143,125) (96,729)
Repayment of lease liabilities 29(c) (13,228) (8,532)
Net cash generated from financing activities 440,516 150,164
Net decrease in cash and cash equivalents (105,340) (106,989)

Cash and cash equivalents at beginning of the year 1,277,542 1,406,497
Balances with mobile network operators - (21,966)
Cash and cash equivalents at end of the year 38 1,172,202 1,277,542

Analysis of cash and cash equivalents at end of
the year:
Cash in hand 549,108 474,888
Balances with Bank of Tanzania (excluding SMR) 286,335 615,713
Placements and balances with other banks 336,759 186,941
1,172,202 1,277,542
*Comparative figures are reclassified. Refer to note 39.

NMB BANK PLC
BANK’S STATEMENT OF CASH FLOWS
2023 2022*
Note
Cash (used)/generated from operations 39(b) (47,228) 56,905

Interest received 24(a) & (b) 212,093 157,116
Interest paid 29(d) & 35 (63,399) (45,920)
Tax refund 18(d) - 11,746
Tax paid 18(d) (251,031) (186,721)
Net cash used in operating activities (155,565) (6,874)
Cash flows from investing activities

Proceeds from government securities 24(a) 607,278 505,734
Investment in government securities 24(a) (932,548) (721,384)
Purchase of property and equipment 27(b) (41,041) (20,690)
Purchase of intangible assets 28 (22,903) (9,394)
Proceeds on disposal of property and equipment 691 590
Lease acquisition - (3,462)
Dividend received 14 55 50
Net cash used in investing activities (388,468) (248,556)
Cash flows from financing activities

Proceeds from borrowings 35 785,238 427,518
Principal paid on borrowings 35 (190,353) (174,141)
Dividends paid 21 (143,125) (96,729)
Repayment of lease liabilities 29(d) (13,067) (8,207)
Net cash generated from financing activities 438,693 148,441
Net decrease in cash and cash equivalents (105,340) (106,989)

Cash and cash equivalents at the beginning of the year 1,277,542 1,406,497
Balances with mobile network operators - (21,966)
Cash and cash equivalents end of the year 38 1,172,202 1,277,542

Analysis of cash and cash equivalents at end of
the year:
Cash in hand 549,108 474,888
Balances with Bank of Tanzania (excluding SMR) 286,335 615,713
1,172,202 1,277,542
*Comparative figures are reclassified. Refer to note 39.

NMB BANK PLC
NOTES TO FINANCIAL STATEMENTS
1. REPORTING ENTITY
NMB Bank Plc (the “Bank or “NMB”) is a public limited liability company and is incorporated and domiciled
in the United Republic of Tanzania. The address of its registered office is as disclosed under corporate
information.
The Bank is listed on the Dar es Salaam Stock Exchange (DSE). The Bank has equity investments in
Tanzania Mortgage Refinance Company Limited (TMRC) and a subsidiary company named Upanga Joint
Venture Company (UJVC) Limited.
The Bank’s financial statements and its subsidiary, UJVC (together, the “Group”) consolidated financial
statements for the year ended 31 December 2023 were approved for issue by Those Charged with
Governance on 15 March 2024. Neither the entity’s owners nor others have the power to amend the
financial statements after issue.
2. BASIS OF PREPARATION
The consolidated and separate financial statements have been prepared on a historical cost basis, except
for derivative financial instruments, other financial assets and liabilities held for trading and financial assets
and liabilities designated at fair value through profit or loss (FVPL) and debt and equity instruments at fair
value through other comprehensive income (FVOCI) all of which have been measured at fair value.
These consolidated and separate financial statements are directed at primary users, being investors who
lend or provide equity capital to the reporting entity. These consolidated and separate financial statements
assume that the primary users have a reasonable knowledge of business and economic activities and
review and analyze the information diligently.
In the preparation of financial statements, the Bank has considered the impact of macro-economic
and geopolitical uncertainty especially on areas which need significant estimates and judgements and
considered materiality assessments.
The financial statements are presented in Tanzania shillings (TZS) which is the functional currency, and
the amounts are rounded to the nearest million, except where otherwise indicated.
The Bank has prepared its consolidated and separate financial statements on the basis that it will continue
to operate as a going concern.
3. STATEMENT OF COMPLIANCE
The Group’s consolidated and separate financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations
Committee (IFRS IC) applicable to companies reporting under IFRS. The financial statements comply
with IFRS as issued by the International Accounting Standards Board (IASB).
The Group’s consolidated and separate financial statements, except for cashflow statement, have been
prepared using the accrual basis of accounting.
The preparation of financial statements in accordance with IFRS requires the use of certain critical
accounting estimates. It also requires the Directors to exercise judgement in the process of applying the
Group’s accounting policies.

NMB BANK PLC
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. STATEMENT OF COMPLIANCE (CONTINUED)
Changes in assumptions may have a significant impact on the financial statements in the period the
assumptions changed. The Directors believe that the underlying assumptions are appropriate and that
the Group’s financial statements therefore present the financial position and results fairly. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements are disclosed in Note 7.
4. PRESENTATION OF FINANCIAL STATEMENTS
The Consolidated and Bank financial statements of NMB Bank Plc have been prepared in accordance
with International Financial Reporting Standards (IFRS) and interpretations issued by IFRS Interpretations
Committee (IFRS IC) applicable to companies reporting under IFRS. The Consolidated and Bank financial
statements have been prepared under the historical cost convention, as modified by the revaluation of
debt and equity instruments designated at fair value through other comprehensive income.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgment in the process of applying the Group’s
and Bank’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas
where assumptions and estimates are significant to the Consolidated and Bank financial statements are
disclosed in Note 7.
5. ADOPTION OF NEW AND REVISED STANDARDS
(a) Changes in material accounting policies
The principal accounting policies applied in the preparation of these consolidated and separate financial
statements are set out below.
(i) New standards and amendments to published standards effective for the year ended 31
December 2023
The following were new and revised IFRSs that have been effective in the current year. The Group’s
and Bank’s application of the new and revised standards did not have material impact on the
disclosures or on the amounts reported to these financial statements.
Amendments to IAS 12 In- In May 2023, the IASB issued narrow-scope amendments to IAS
come taxes: International Tax 12, ‘Income Taxes’. This amendment was introduced in response
Reform – Pillar Two Model to the imminent implementation of the Pillar Two model rules
Rules (issued 23 May 2023) released by the Organization for Economic Co-operation and
Development’s (OECD) as a result of international tax reform.

NMB BANK PLC
5. ADOPTION OF NEW AND REVISED STANDARDS (CONTINUED)
(a) Changes in material accounting policies (Continued)
December 2023 (Continued)
Amendments to IAS The amendments provide a temporary exception from the requirement
12 Income taxes: to recognize and disclose deferred taxes arising from enacted or
International Tax Reform substantively enacted tax law that implements the Pillar Two model
– Pillar Two Model Rules rules. Companies may apply the exception immediately, but disclosure
(issued 23 May 2023) requirements are required for annual periods commencing on or after
(Continued) 1 January 2023.
The amendment did not have a material impact on these consolidated

and separate financial statements.
Amendments to IAS IAS 1 was amended to require companies to disclose their material
1 and IFRS Practice accounting policy information rather than their significant accounting
Statement 2: Making policies. The amendment provided the definition of material accounting
material judgments, policy information. The amendment also clarified that accounting
Disclosure of Accounting policy information is expected to be material if, without it, the users
policies (issued on 12 of the financial statements would be unable to understand other
February 2021 and material information in the financial statements. The amendment
effective for annual provided illustrative examples of accounting policy information that
periods beginning on or is likely to be considered material to the entity’s financial statements.
after 1 January 2023). Further, the amendment to IAS 1 clarified that immaterial accounting
policy information need not be disclosed. However, if it is disclosed, it
should not obscure material accounting policy information. To support
this amendment, IFRS Practice Statement 2, ‘Making Materiality
Judgements’ was also amended to provide guidance on how to apply
the concept of materiality to accounting policy disclosures.
The amendments resulted in changes in the presentation of these

consolidated and separate financial statements, primarily by removing
certain accounting policies that do not represent material accounting
policy information that require disclosure based on assessment done
by Management.
Amendments to IAS 12 The amendments to IAS 12 specify how to account for deferred tax
(issued on 7 May 2021 on transactions such as leases and decommissioning obligations. In
and effective for annual specified circumstances, entities are exempt from recognizing deferred
periods beginning on or tax when they recognize assets or liabilities for the first time. Previously,
after 1 January 2023), there had been some uncertainty about whether the exemption applied
Deferred tax related to to transactions such as leases and decommissioning obligations –
assets and liabilities transactions for which both an asset and a liability are recognized.
arising from a single The amendments clarify that the exemption does not apply and that
transaction. entities are required to recognize deferred tax on such transactions.
The amendments require companies to recognize deferred tax on
transactions that, on initial.

NMB BANK PLC
Amendments to IAS 12 (issued The amendments require companies to recognize deferred tax on
on 7 May 2021 and effective transactions that, on initial recognition, give rise to equal amounts of
for annual periods beginning taxable and deductible temporary differences.
on or after 1 January 2023),
Deferred tax related to assets The amendment did not have a material impact on these consolidated
and liabilities arising from a and separate financial statements.
single transaction. (Continued)
Amendments to IFRS 17 and The amendments include a number of clarifications intended to

an amendment to IFRS 4 ease implementation of IFRS 17, simplify some requirements of
(issued on 25 June 2020 and the standard and transition. The amendments relate to eight areas
effective for annual periods of IFRS 17, and they are not intended to change the fundamental
beginning on or after 1 January principles of the standard. The following amendments to IFRS 17
2023). were made:
• Effective date: The effective date of IFRS 17 (incorporating the
amendments) has been deferred by two years to annual reporting
periods beginning on or after 1 January 2023; and the fixed expiry
date of the temporary exemption from applying IFRS 9 in IFRS 4
has also been deferred to annual reporting periods beginning on
or after 1 January 2023.
• E
xpected recovery of insurance acquisition cash flows: An entity
is required to allocate part of the acquisition costs to related
expected contract renewals, and to recognise those costs as an
asset until the entity recognises the contract renewals. Entities are
required to assess the recoverability of the asset at each reporting
date, and to provide specific information about the asset in the
notes to the financial statements.
• C
ontractual service margin attributable to investment services:
Coverage units should be identified, considering the quantity of
benefits and expected period of both insurance coverage and
investment services, for contracts under the variable fee approach
and for other contracts with an ‘investment-return service’ under
the general model. Costs related to investment activities should
be included as cash flows within the boundary of an insurance
contract, to the extent that the entity performs such activities to
enhance benefits from insurance coverage for the policyholder.

NMB BANK PLC
Amendments to IFRS 17 and • R

einsurance contracts held – recovery of losses: When an entity
an amendment to IFRS 4 recognises a loss on initial recognition of an onerous group
(issued on 25 June 2020 and of underlying insurance contracts, or on addition of onerous
effective for annual periods underlying contracts to a group, an entity should adjust the
beginning on or after 1 contractual service margin of a related group of reinsurance
January 2023). contracts held and recognise a gain on the reinsurance contracts
(Continued) held. The amount of the loss recovered from a reinsurance
contract held is determined by multiplying the loss recognised on
underlying insurance contracts and the percentage of claims on
underlying insurance contracts that the entity expects to recover
from the reinsurance contract held. This requirement would apply
only when the reinsurance contract held is recognised before
or at the same time as the loss is recognised on the underlying
insurance contracts.
Amendments to IFRS 17 and • O
ther amendments: Other amendments include scope exclusions
an amendment to IFRS 4 for some credit card (or similar) contracts, and some loan
(issued on 25 June 2020 and contracts; presentation of insurance contract assets and liabilities
effective for annual periods in the statement of financial position in portfolios instead of groups;
beginning on or after 1 applicability of the risk mitigation option when mitigating financial
January 2023). (Continued) risks using reinsurance contracts held and non-derivative financial
instruments at fair value through profit or loss; an accounting
policy choice to change the estimates made in previous interim
financial statements when applying IFRS 17; inclusion of income
tax payments and receipts that are specifically chargeable to
the policyholder under the terms of an insurance contract in the
fulfilment cash flows; and selected transition reliefs and other
minor amendments.
The adoption of the standard did not have a material impact on these
consolidated and separate financial statements.
IFRS 17 “Insurance Contracts” IFRS 17 replaces IFRS 4, which has given companies dispensation
(issued on 18 May 2017 and to carry on accounting for insurance contracts using existing
effective for annual periods practices. As a consequence, it was difficult for investors to compare
beginning on or after 1 and contrast the financial performance of otherwise similar insurance
January 2023). companies. IFRS 17 is a single principle-based standard to account
for all types of insurance contracts, including reinsurance contracts
that an insurer holds. The standard requires recognition and
measurement of groups of insurance contracts at: (i) a risk-adjusted
present value of the future cash flows (the fulfilment cash flows) that
incorporates all of the available information about the fulfilment cash
flows in a way that is consistent with observable market information;
plus (if this value is a liability) or minus (if this value is an asset) (ii)
an amount representing the unearned profit in

NMB BANK PLC
IFRS 17 “Insurance the group of contracts (the contractual service margin). Insurers are
Contracts” (issued on 18 May now recognizing the profit from a group of insurance contracts over
2017 and effective for annual the period they provide insurance coverage, and as they are released
periods beginning on or after from risk. If a group of contracts is or becomes loss-making, an entity
1 January 2023). (Continued) recognizes the loss immediately.
Amendments to IAS 8: The amendment did not have a material impact on these consolidated
Definition of Accounting and separate financial statements.
Estimates (issued on 12 The amendment to IAS 8 clarified how companies should distinguish
February 2021 and effective changes in accounting policies from changes in accounting estimates.
for annual periods beginning
on or after 1 January 2023). The amendment did not have a material impact on these consolidated
and separate financial statements.
Transition option for The amendment to the transition requirements in IFRS 17 provides
insurers applying IFRS insurers with an option aimed at improving the usefulness of
17 – Amendments to IFRS information to investors on initial application of IFRS 17. The
17 (issued on 9 December amendment relates to insurers’ transition to IFRS 17 only and
2021 and effective for annual does not affect any other requirements in IFRS 17. The transition
periods beginning on or after requirements in IFRS 17 and IFRS 9 apply at different dates and
1 January 2023). result in the following one-time classification differences in the
comparative information presented on initial application of IFRS
17: accounting mismatches between insurance contract liabilities
measured at current value and any related financial assets
measured at amortized cost; and if an entity chooses to restate
comparative information for IFRS 9, classification differences
between financial assets derecognized in the comparative period (to
which IFRS 9 will not apply) and other financial assets (to which
IFRS 9 will apply). The amendment helps insurers to avoid these
temporary accounting mismatches and, therefore, will improve the
usefulness of comparative information for investors. It does this by
providing insurers with an option for the presentation of comparative
information about financial assets. When initially applying IFRS 17,
entities are, for the purpose of presenting comparative information,
permitted to apply a classification overlay to a financial asset for
which the entity does not restate IFRS 9 comparative information.
The transition option is available, on an instrument-by-instrument
basis; allows an entity to present comparative information as if the
classification and measurement requirements of IFRS 9 had been
applied to that financial asset, but not require an entity to apply the
impairment requirements of IFRS 9; and require an entity that

NMB BANK PLC
Transition option for applies the classification overlay to a financial asset to use
insurers applying IFRS reasonable and supportable information available at the transition
17 – Amendments to IFRS date to determine how that financial asset is to be classified applying
17 (issued on 9 December IFRS 9
2021 and effective for annual
periods beginning on or after The amendment did not have a material impact on these consolidated
1 January 2023). (Continued) and separate financial statements.
he application of the above amendments had no material impact on the Bank’s consolidated and
T
separate financial statements.
(ii) Impact of new amended standards and interpretations in issues but not yet effective standards
and amendments for the year ended 31 December 2023
Certain new standards and interpretations have been issued that are mandatory for the annual
periods beginning on or after 1 January 2024 or later, and which the Bank has not early adopted.
Amendments to IFRS 16 The amendments relate to the sale and leaseback transactions that
Leases: Lease Liability in a satisfy the requirements in IFRS 15 to be accounted for as a sale.
Sale and Leaseback (issued The amendments require the seller-lessee to subsequently measure
on 22 September 2022 and liabilities arising from the transaction and in a way that it does not
effective for annual periods recognize any gain or loss related to the right of use that it retained.
beginning on or after 1 This means deferral of such a gain even if the obligation is to make
January 2024). variable payments that do not depend on an index or a rate.
Classification of liabilities The Bank is currently assessing the impact of the amendments on
as current or non-current its financial statements.
– Amendments to IAS These amendments clarify that liabilities are classified as either
1 (originally issued on current or non-current, depending on the rights that exist at the
23 January 2020 and end of the reporting period. Liabilities are non-current if the entity
subsequently amended on has a substantive right, at the end of the reporting period, to defer
15 July 2020 and 31 October settlement for at least twelve months. The guidance no longer
2022, ultimately effective for requires such a right to be unconditional. The October 2022
annual periods beginning on amendment established that loan covenants to be complied with
or after 1 January 2024. after the reporting date do not affect the classification of debt
as current or non-current at the reporting date. Management’s
expectations whether they will subsequently exercise the right to
defer settlement do not affect classification of liabilities. A liability
is classified as current if a condition is breached at or before the
reporting.

NMB BANK PLC
(ii) New standards and amendments to published standards effective for the year ended 31
Classification of liabilities date even if a waiver of that condition is obtained from the lender
as current or non-current after the end of the reporting period. Conversely, a loan is classified
– Amendments to IAS as non-current if a loan covenant is breached only after the reporting
1 (originally issued on date. In addition, the amendments include clarifying the classification
23 January 2020 and requirements for debt a company might settle by converting it into
subsequently amended on equity. ‘Settlement’ is defined as the extinguishment of a liability
15 July 2020 and 31 October with cash, other resources embodying economic benefits or an
2022, ultimately effective for entity’s own equity instruments. There is an exception for convertible
annual periods beginning instruments that might be converted into equity, but only for those
on or after 1 January 2024 instruments where the conversion option is classified as an equity
(continued). instrument as a separate component of a compound financial
instrument.
Amendments to IAS 7
Statement of Cash Flows and The Bank is currently assessing the impact of the amendments on
IFRS 7 Financial Instruments: its financial statements.
Disclosures: Supplier In response to concerns of the users of financial statements about
Finance Arrangements inadequate or misleading disclosure of financing arrangements,
(Issued on 25 May 2023). in May 2023, the IASB issued amendments to IAS 7 and IFRS 7
to require disclosure about entity’s supplier finance arrangements
(SFAs). These amendments require the disclosures of the entity’s
supplier finance arrangements that would enable the users of
financial statements to assess the effects of those arrangements on
the entity’s liabilities and cash flows and on the entity’s exposure to
liquidity risk. The purpose of the additional disclosure requirements is
to enhance the transparency of the supplier’s finance arrangements.
The amendments do not affect recognition or measurement principles
but only disclosure requirements. The new disclosure requirements
will be effective for the annual reporting periods beginning on or after
1 January 2024.
The Bank is currently assessing the impact of the amendments on

its financial statements.
IFRS S1 (General IFRS S1 - S

ets out overall requirements with the objective to require
Requirements for Disclosure an entity to disclose information about its sustainability-
of Sustainability-related related risks and opportunities that is useful to the primary
Financial Information) users of general-purpose financial reports in making
decisions relating to providing resources to the entity.
IFRS S1 was issued in June 2023 and applies to annual reporting

periods beginning on or after 1 January 2024.


NMB BANK PLC
(ii) New standards and amendments to published standards effective for the year ended 31
IFRS S2- (Climate-related IFRS S2 - Sets out the requirements for identifying, measuring and
Disclosures) (Continued) disclosing information about climate-related risks and
opportunities that is useful to primary users of general-
purpose financial reports in making decisions relating to
providing resources to the entity
IFRS S2 was issued in June 2023 and applies to annual reporting

periods beginning on or after 1 January 2024.

Unless otherwise described above, the new standards and interpretations are not expected to
materially affect the Bank’s consolidated and separate financial statements.
6. MATERIAL ACCOUNTING POLICIES
(a) Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to
the Bank’s Executive Committee, which is the chief operating decision maker. Information about
segment operations is provided under Note 8.
(b) Principles of consolidation and equity accounting
The consolidated financial statements incorporate the financial statements of the Bank and an entity
controlled by the Bank, Upanga Joint Venture Company (UJVC) Limited (its subsidiary). The financial
statements of the Bank and its subsidiary are made up to 31 December 2023.
(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Bank has control. The
Bank controls an entity when the Bank is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the
entity. Subsidiaries are fully consolidated from the date on which control is transferred to the
Bank. They are deconsolidated from the date that control ceases.

NMB BANK PLC
6. MATERIAL ACCOUNTING POLICIES (CONTINUED)
(b) Principles of consolidation and equity accounting (Continued)
(i) Subsidiaries (Continued)
The acquisition method of accounting is used to account for business combinations by the
Bank. Intercompany transactions, balances and unrealized gains on transactions between
Group companies are eliminated. Unrealized losses are also eliminated unless the transaction
provides evidence of an impairment of the transferred asset.
The accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Bank.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the
consolidated statement of profit or loss and other comprehensive income, statement of changes
in equity and statement of financial position respectively.
(ii) Changes in ownership interests in subsidiaries without change of control
The Bank treats transactions with non-controlling interests that do not result in a loss of control
as transactions with equity owners of the Bank. A change in ownership interest results in an
adjustment between the carrying amounts of the controlling and non-controlling interests
to reflect their relative interests in the subsidiary. Any difference between the amount of the
adjustment to non-controlling interests and any consideration paid or received is recognized in
a separate reserve within equity attributable to owners of the Bank.
(iii) Disposal of subsidiaries
When the Bank ceases to have control, any retained interest in the entity is re-measured to its
fair value at the date when control is lost, with the change in carrying amount recognized in profit
or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting
for the retained interest as an associate, joint venture or financial asset. In addition, any amounts
previously recognized in other comprehensive income in respect of that entity are accounted
for as if the Bank had directly disposed of the related assets or liabilities. This may mean that
amounts previously recognized in other comprehensive income are reclassified to profit or loss.
(iv) Separate financial statements
In the separate financial statements, investment in the subsidiary is accounted for at cost less
impairment.

NMB BANK PLC
(c) Interest income and expense
Interest income is calculated by applying the effective interest rate to the gross carrying amount of
financial assets, except for:
(i) Purchased or originated credit-impaired (POCI) financial assets, for which the original credit –
adjusted effective interest rate is applied to the amortised cost of the financial asset.
(ii) Financial assets that are not ‘POCI’ but have subsequently become credit-impaired (or stage 3),
for which interest revenue is calculated by applying the effective interest rate to their amortised
cost (i.e. net of the expected credit loss provision).
Interest income and expense for all interest-bearing financial instruments are recognized within ‘interest
income’ or ‘interest expense’ in profit or loss using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial asset or a
financial liability and of allocating the interest income or interest expense over the relevant period. The
effective interest rate is the rate that exactly discounts estimated future cash payments or receipts throug
the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying
amount of the financial asset or financial liability. The calculation includes all fees paid or received between
parties to the contract that are an integral part of the effective interest rate, transaction costs and all other
premiums or discounts.
Once a financial asset or a group of similar financial assets has been written down as a result of an
impairment loss, interest income is recognized using the rate of interest used to discount the future cash
flows for the purpose of measuring the impairment loss.
(d) Fee and commission income and expense
Fees integral to the effective interest rate include origination fees received or paid by the entity relating
to the creation or acquisition of a financial asset or issuance of a financial liability, for example fees for
evaluating creditworthiness, evaluating and recording guarantees or collateral, negotiating the terms of
the instrument and for processing transaction documents. Commitment fees received by the Bank to
originate loans at market interest rates are integral to the effective interest rate if it is probable that the
Bank will enter into a specific lending arrangement and does not expect to sell the resulting loan shortly
after origination. The Bank does not designate loan commitments as financial liabilities at fair value
through profit or loss.
Fees and commission on other services such as ATMs, MNO, Agency banking and bancassurance
are recognized at an amount which reflects the consideration which the Bank expects to be entitled in
exchange for providing the services. All fees and commissions are generally recognized on an accrual
basis when the service has been provided. The performance obligations, as well as the timing of their
satisfaction, are identified, and determined, at the inception of the contract. Commitment fees for loans
that are likely to be drawn down are deferred (together with related direct costs) and recognized as an
adjustment to the effective interest rate on the loan.

NMB BANK PLC
(d) Fee and commission income and expense (Continued)
Loan syndication fees are recognized as revenue when the syndication has been completed and the
Bank has retained no part of the loan package for itself or has retained a part at the same effective
interest rate as the other participants. Commission and fees arising from negotiating, or participating
in the negotiation of, a transaction for a third party - such as the arrangement of the acquisition of
shares or other securities, or the purchase or sale of businesses - are recognized on completion of
the underlying transaction.
(e) Foreign currency translation
i. Functional and presentation currency
Items included in the financial statements of the Group and the Bank are measured using the currency
of the primary economic environment in which the Group and the Bank operate (the “functional
currency”). The financial statements are presented in Tanzania Shillings (TZS) rounded to the nearest
million, which is the Group and Bank’s functional currency.
ii. Transactions and balances
Foreign currency transactions are translated into Tanzania Shillings using the exchange rates
prevailing at the dates of the transactions. Monetary items denominated in foreign currency are
translated with the closing rate as at the reporting date. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at year-end exchange rates of
monetary assets and liabilities denominated in foreign currencies are recognized in the profit or loss.
All other foreign exchange gains and losses are presented in the statement of profit or loss and other
comprehensive income on a net basis within other income or other expenses.
(f) Financial assets and financial liabilities
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the
contractual provisions of the instruments. Regular way purchases and sales of financial assets are
recognised on trade – date on which the Bank and Group commits to purchase or sell the asset.
At initial recognition, the Group measures a financial asset or financial liability at its fair value plus
or minus in the case of a financial asset or financial liability not a fair value through profit or loss,
transaction costs that are incremental and directly attributable to the acquisition or issue of the
financial asset or financial liability, such as fees and commissions. Transaction costs of financial assets
and liabilities carried at fair value through profit or loss are expensed in profit or loss. Immediately
after initial recognition, an expected credit loss allowance (ECL) is recognised for financial assets
measured at amortised cost and investments in debts instruments measured at FVOCI, which results
in an accounting loss being recognised in profit or loss when an asset is newly originated.

NMB BANK PLC
(f) Financial assets and financial liabilities (continued)
Initial recognition and measurement (Continued)
When the fair value of financial assets and liabilities differs from the transaction price on initial
recognition, the entity recognises the difference as follows:
(i) When the fair value is evidenced by a quoted price in an active market for an identical asset or
liability (i.e. a level 1 input) or based on a valuation technique that uses only data from observable
markets, the difference is recognised as a gain or loss in other comprehensive income.
(ii) In all other cases, the difference is deferred, and the timing or recognition of deferred day one
profit or loss is determined individually. It is either amortised over the life of the instrument,
deferred until the instrument’s fair value can be determined using market observable inputs, or
realised through settlement.
Financial Assets
(i) Classification and subsequent measurement
The Group classifies its financial assets in the following measurement categories:
• Fair Value through profit or loss (FVPL);
• Fair Value through Other Comprehensive Income (FVOCI); and
• Amortised cost.
The classification requirements for debts and equity instruments are described below:
Debt instruments
Debt instruments are those instruments that meet the definition of a financial liability from the issuer’s
perspective, such as loans, government and corporate bonds and trade receivables purchased from
clients in factoring arrangements without recourse.
Classification and subsequent measurement of debt instruments depend on:
(i) The Group’s business model for managing the asset; and
(ii) The cash flow characteristics of the asset.

NMB BANK PLC
Financial Assets (continued)
(i) Classification and subsequent measurement (continued)
Debt instruments (continued)
Based on these factors, the Bank and Group classifies its debt instruments into one of the
following three measurement categories:
Amortised cost: Assets that are held for collection of contractual cash flows where those cash
•
flows represent solely payments of principal and interest (‘SPPI’), and that are not designated
at FVPL, are measured at amortised cost. The carrying amount of these assets is adjusted by
any expected credit loss allowance recognised and measured as described in note 9. Interest
income from these financial assets is included in ‘Interest income’ using effective interest rate
method.
Fair value through other comprehensive income (FVOCI): Financial assets that are held
•
for collection of contractual cash flows and for selling the assets, where the assets’ cash flows
represent solely payments of principals and interest, and that are not designated at FVPL,
are measured at fair value through other comprehensive income (FVOCI). Movements in the
carrying amount are taken through OCI, except for the recognition of impairment gains or
losses, interest revenue and foreign exchange gains and losses on the instrument’s amortised
cost which are recognised in profit and loss. When the financial asset is derecognised, interest
income from these financial assets is included in ‘interest income’ using the effective interest
rate method.
Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or
•
FVOCI are measured at fair value through profit or loss. A gain or loss on a debt investment
that is subsequently measured at fair value through profit or loss and is not part of a hedging
relationship is recognised in profit or loss and presented in the profit or loss statement within
‘Net trading income’ in the period in which it arises, unless it arises from debt instruments
that were designated at fair value or which are not held for trading, in which case they are
presented separately in ‘Net investment income’. Interest income from these financial assets
is included in interest income’ using the effective interest rate method.

NMB BANK PLC
Debt instruments (continued)
Business model: the business model reflects how the Bank and Group manages the assets

in order to generate cash flows. That is, whether the Bank’s and Group’s objective is solely
to collect the contractual cash flows from the assets or is to collect both the contractual cash
flows and cash flows arising from the sale of the assets. If neither of these is applicable (e.g.
financial assets are held for trading purposes), then the financial assets are classified as
part of ‘other’ business model and measured at FVPL. Factors considered by the Group in
determining the business model for group of assets include past experience on how the cash
flows for these assets were collected, how the asset’s performance is evaluated and reported
to key management personnel, how risks are assessed and managed and how managers are
compensated. For example, the Bank’s and Group’s business model for the mortgage loan book
is to hold to collect contractual cash flows, with sales of loans only being made internally to a
consolidated SPV for the purpose of collateralising notes issued, with no resulting derecognition
by the Bank and Group. Another example is the liquidity portfolio of assets, which are held by
the Bank and Group as part of liquidity management and is generally classified within the hold to
collect and sell business model. Securities held for trading are held principally for the purposes
of selling in the near term or are part of a portfolio of financial instruments that are managed
together and for which there is evidence of a recent actual pattern of short-term profit taking.
These securities are classified in the ‘other’ business model and measured at FVPL.
SPPI: Where the business model is to hold assets to collect contractual cash flows or to collect

contractual cash flows and sell, the Bank and Group assesses whether the financial instruments’
cash flows represent solely payments of principals and interest (the SPPI test’). In making this
assessment, the Group considers whether the contractual cash flows are consistent with a
basic lending arrangement i.e. interest includes only consideration for the time value of money,
credit risk, other basic lending risks and a profit margin that is consistent with a basic lending
arrangement. Where the contractual terms introduce exposures to risk or volatility that are
inconsistent with a basic lending arrangement, the related financial assets are classified and
measured at fair value through profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining
whether their cash flows are solely payments of principal and interest.
The Bank and Group reclassifies debts investments when and only when its business model
for managing those assets changes. The reclassification takes place from the start of the first
reporting period following the change. Such changes are expected to be very infrequent, and
none occurred during the period.

Equity instruments
Equity instruments are instruments that meet the definition of equity from the issuer’s perspective;
that is, instruments that do not contain a contractual obligation to pay and that evidence a
residual interest in the issuer’s net assets. Example of equity instruments include basic ordinary
shares.

NMB BANK PLC
Equity instruments (continued)
The Group subsequently measures all equity investments at fair value through profit or loss,
except where the Group’s management has elected, at initial recognition, to irrevocably designate
an equity investment at fair value through other comprehensive income. The Group’s policy is
to designate equity investments as FVOCI when those investments are held for purposes other
than to generate investment returns. When this election is used, fair value gains and losses are
recognised in OCI and are not subsequently reclassified to profit or loss, including on disposal.
Impairment losses (and reversal of impairment losses) are not reported separately from other
changes in fair value. Dividends, when representing a return on such investments, continue to
be recognised in profit or loss as other income when the Group’s right to receive payments is
established.
Gains and losses on equity investments at FVPL are included in the ‘Net trading income’ line in
the statement or profit or loss.
(ii) Impairment
The Group assesses on a forward-looking basis the expected credit losses (‘ECL’) associated
with its debt instruments assets carried at amortised cost and FVOCI and with the exposure
arising from loan commitments and financial guarantee contracts. The Group recognises a loss
allowance for such losses at each reporting date. The measurement of ECL reflects:
• An unbiased and probability – weighted amount that is determined by evaluating a range of
possible outcomes.
• The time value of money; and
• Reasonable and supportable information that is available without undue cost or efforts at
the reporting date about past events, current conditions and forecast of future economic
conditions.
Details of the Group’s impairment policy and disclosures are provided under Note 9.1.3 and
9.1.5.
(iii) Modifications of loans
The Group sometimes renegotiates or otherwise modifies the contractual cash flows of loans
to customers. When this happens, the Group assesses whether or not the new terms are
substantially different to the original terms. The Group does this by considering, among others,
the following factors:

NMB BANK PLC
(iii) Modifications of Loans (Continued)
• If the borrower is in financial difficulty, whether the modification merely reduces the contractual
cash flows to amounts the borrower is expected to be able to pay.
• Whether any substantially new terms are introduced, such as a profit share/equity- based
return that substantially affects the risk profile of the loan.
• Significant extension of the loan term when the borrower is not in financial difficulty.
• Significant changes in the interest rate.
• Change in the currency the loan is denominated in.
• Insertion of collateral, other security or credit enhancements that significantly affects the credit
risk associated with the loan.
If the terms are substantially different, the Group derecognises the original financial asset and
recognises a ‘new’ asset at fair value and recalculates a new effective interest rate for the asset.
The date of renegotiation is consequently considered to be the date of the initial recognition
for impairment calculation purposes, including for the purposes of determining whether a
significant increase in credit risk has occurred. However, the Group also assesses whether the
new financial asset recognised is deemed to be credit-impaired at initial recognition, especially
in circumstances where the renegotiation was driven by the debtor being unable to make the
originally agreed payments. Differences in the carrying amount are also recognised in profit or
loss as gains or loss on derecognition.
If the terms are not substantially different, the renegotiation or modification does not result in
derecognition, and the Group recalculates the gross carrying amount based on the revised cash
flows of the financial asset and recognises a modification gain or loss in profit or loss. The new
gross carrying amount is recalculated by discounting the modified cash flows at the original
effective interest (or credit-adjusted effective interest rate for purchased or originated credit-
impaired financial assets).
The risk of default of such assets after modification is assessed at the reporting date and
compared with the risk under the original terms at initial recognition, when the modification is not
substantial and so does not result in derecognition of the original asset. The Bank monitors the
subsequent performance of modified assets. The Bank may determine that the credit risk has
significantly improved after restructuring, so that the assets are moved from Stage 3 or Stage 2
(Lifetime ECL) to Stage 1 (12-month ECL). The loan will remain in its original stage until it meets
the criteria as described in Note 6 (f) (iv) on the next page.

NMB BANK PLC
(iv) Curing of non-performing financial assets including restructured facilities.
An instrument is considered to no longer have SICR or be in default (i.e. to have cured) when it
has been established that the obligor is able to meet the requirements of the agreed terms and
conditions.
IFRS 9 allows credit exposures to migrate from higher credit risk categories to lower credit risk
categories, that is, from stage 3 to stage 2 and from stage 2 to stage 1.
Under migration from stage 3 to stage 2, the Bank shall consider criteria for upgrade of credit
accommodations as follows:
i. in the case of overdraft facilities, the account has satisfactorily performed for a minimum period
of two consecutive quarters; and
ii. In the case of term loans, the obligor has timely paid four consecutive installments.
On the other hand, credit exposures may migrate from stage 2 to stage 1 when there is a significant
improvement of the credit exposure. In determining whether an exposure should shift backward from
stage 2 to stage 1, The Bank shall consider the following;
i. All outstanding payments on the credit facility are made on time and there are no payments in
arrears.
ii. There is improvement of the quantitative and qualitative factors that caused significant increase
of the credit risk.
Upgrade from stage 2 to stage 1 shall be subject to a monitoring period of 90 days for conventional
loans and 30 days for Microfinance loans to confirm if the risk of default has decreased sufficiently
before upgrading such exposure.
(v) Derecognition other than on a modification
Financial assets, or a portion thereof, are derecognized when the contractual rights to receive the
cash flows from the assets have expired, or when they have been transferred and either (i) the Group
transfers substantially all the risks and rewards of ownership, or (ii) the Group neither transfers nor
retains substantially all the risks and rewards of ownership and the Group has not retained control.

NMB BANK PLC
(v) Derecognition other than on a modification (continued)
The Group enters into transactions where it retains the contractual rights to receive cash flows from
assets but assumes a contractual obligation to pay those cash flows to other entities and transfers
substantially all of the risks and rewards. These transactions are accounted for as ‘pass through’
transfers that result in derecognition if the Group:
i) Has no obligation to make payments unless it collects equivalent amounts from the assets;
ii) Is prohibited from selling or pledging the assets; and
iii) Has an obligation to remit any cash it collects from the assets without material delay
Collateral (shares and bonds) furnished by the Group under standard repurchase agreements and
securities lending and borrowing transactions are not derecognized because the Group retains
substantially all the risks and rewards on the basis of the predetermined repurchase price, and the
criteria for derecognition are therefore not met. This also applies to certain securitization transactions
in which the Group retains a subordinated residual interest.
Financial Liabilities
(i) Classification and subsequent measurement
In both the current and prior period, financial liabilities are classified as subsequently measured
at amortized cost, except for:
• Financial liabilities at fair value through profit or loss: this classification is applied to derivatives
financial liabilities held for trading (e.g. short positions in the trading booking) and other financial
liabilities designated as such at initial recognition. Gains or losses on financial liabilities
designated at fair value through profit or loss are presented partially in other comprehensive
income (the amount of change in the fair value of the financial liability that is attributable
to changes in the credit risk of that liability, which is determined as the amount that is not
attributable to Changes in market conditions that give rise to market risk) and partially in profit
or loss (the remaining amount of change in the fair value of the liability). This is unless such a
presentation would create, or enlarge, an accounting mismatch, in which case the gains and
losses attributable to changes in the credit risk of the liability are also presented in profit or
loss;
• Financial liabilities arising from the transfer of financial assets which did not qualify for
derecognition, whereby a financial liability is recognised for the consideration received for the
transfer. In subsequent periods, the Group recognises any expense incurred on the financial
liability; and
• Financial guarantee contracts and loan commitments.

NMB BANK PLC
Financial Liabilities (continued)
(ii) Derecognition
Financial liabilities are derecognized when they are extinguished (i.e. when the obligation
specified in the contract is discharged, cancelled or expires).
The exchange between the Group and its original lenders of debt instruments with substantially
different terms, as well as substantial modifications of the terms of existing financial liabilities,
are accounted for as an extinguishment of the original financial liability and the recognition of a
new financial liability. The terms are substantially different if the discounted present value of the
cash flows under the new terms, including any fees paid net of any fees received and discounted
using the original effective interest rate, is at least 10% different from the discounted present
value of the remaining cash flows of the original financial liability. In addition, other qualitative
factors, such as the currency that the instrument is denominated in, changes in the type of
interest rate, new conversion features attached to the instrument and change in covenants are
also taken into consideration. If an exchange of debt instruments or modification of terms is
accounted for as an extinguishment, any costs or fees incurred are recognized as part of the
gain or loss on the extinguishment. If the exchange or modification is not accounted for as an
extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are
amortized over the remaining term of the modified liability.
Financial guarantee contracts and loan commitments
Financial guarantee contracts are contracts that require the issuer to make specific payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payments when
due, in accordance with the terms of a debts instrument. Such financial guarantees are given
to banks, financial institutions and others on behalf of customers to secure loans, overdraft and
other banking facilities.
Financial guarantee contracts are initially measured at fair value and subsequently measured at
the higher of:
• The amount of the loss allowance; and

• The premium received on initial recognition less income recognised in accordance with the
principles of IFRS 15.
Loan commitments provided by the Group are measured as the amount of the loss allowance.
The Group has not provided any commitment to provide loans at a below-market interest rate,
or that can be settled net in cash or by delivering or issuing another financial instrument.
For loan commitments and financial guarantee contracts, the loss allowance is recognised as
a provision. However, for contracts that include both a loan and an undrawn commitment and
the Group cannot separately identify the expected credit losses on the undrawn commitment
component from those on the loan component, the expected credit losses on the undrawn
commitment are recognised together with the loss allowance for the loan. To the extent that the
combined expected credit losses exceed the gross carrying amount of the loan, the expected
credit losses are recognised as provision.

NMB BANK PLC
Offsetting financial instruments
Financial assets and liabilities are offset, and the net amount reported in the statement of financial
position when there is a legally enforceable right to set off the recognized amounts and there is an
intention to settle on a net basis or realize the asset and settle the liability simultaneously.
Financial guarantees
Financial guarantees are initially recognized in the consolidated and Bank financial statements at
fair value on the date the guarantee was given. The fair value of a financial guarantee at the time
of signature is zero because all guarantees are agreed on arm’s length terms and the value of the
premium agreed corresponds to the value of the guaranteed obligation.
Acceptances and letters of credit
Acceptances and letters of credit are accounted for as off-balance sheet transactions and disclosed
as contingent liabilities.
Undrawn commitments
These are commitments the Bank has made to extend credit to customers and are accounted for as
off-balance sheet transactions and disclosed as contingent liabilities.
(j) Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are
subsequently carried at amortized cost; the difference between the proceeds (net of transaction
costs) and the redemption value is recognized in profit or loss over the period of the borrowings using
the effective interest method.
Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to
the extent that it is probable that some or all the facility will be drawn down. In this case, the fee is
deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some
or all the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and
amortized over the period of the facility to which it relates. The valuation gain and losses on the
borrowings are recognized as part of foreign exchange income in the statement of profit and loss.
(k) Current and deferred income taxes
The income tax expense for the period is the tax payable on the current period’s taxable income
based on the applicable income tax rate in accordance with the Income Tax Act, 2004 adjusted by
changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax
losses.

NMB BANK PLC
(h) Current and deferred income taxes (continued)
The current income tax charge is calculated based on the tax laws enacted or substantively enacted at
the end of the reporting period in Tanzania where the Bank and its subsidiary operate and generates
taxable income. Management periodically evaluates positions taken in tax returns with respect to
situations in accordance with the Income Tax Act, 2004 interpretation. It establishes provisions where
appropriate based on amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial
statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition
of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an
asset or liability in a transaction other than a business combination that at the time of the transaction
affects neither accounting nor taxable profit. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted by the end of the reporting period and are
expected to apply when the related deferred income tax asset is realized or the deferred income tax
liability is settled.
Deferred tax assets are recognized only if it is probable that future taxable amounts will be available
to utilize those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset
and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items
recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized
in other comprehensive income or directly in equity, respectively.
(i) Provisions
Provisions are recognized when the Group has a present legal or constructive obligation as a result
of past events, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.
Provisions are not recognized for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognized
even if the likelihood of an outflow with respect to any one item included in the same class of
obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle
the obligation using a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the obligation. The increase in the provision due to the passage of
time is recognized as an interest expense.

NMB BANK PLC
(j) Non-financial assets
i. Property and equipment
Property and equipment are stated at historical cost less depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Subsequent expenditures
are included in the asset’s carrying amount or are recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the
Group and the cost of the item can be measured reliably. All other repair and maintenance are
charged to profit or loss during the financial period in which they are incurred.
Depreciation is provided on the straight-line basis so as to write down the cost of assets to their
residual values over their useful economic lives, at the following rates:
%
Building 5
Leasehold improvements 5-50
Brand New Motor vehicles 20
Used Motor vehicles 33.3
Furniture, fittings and equipment 20
Computer equipment 33.3
The assets’ residual values and useful lives are reviewed and adjusted if appropriate, at the
end of each reporting period. An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater than its estimated recoverable
amount. The recoverable amount is the higher of the assets fair value, less costs to sell and
value in use. Gains and losses on disposals are determined by comparing proceeds with carrying
amount. These are included in other operating income in the profit or loss.
ii. Right-of-use assets
The Bank recognises right-of-use assets at the commencement date of the lease (i.e., the date
the underlying asset is available for use). Right-of-use assets are initially measured at amount
of lease liability and subsequently adjusted with accumulated amortization and impairment
losses, and any re-measurement of lease liabilities. The cost of right-of-use assets includes the
amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at
or before the commencement date less any lease incentives received. Right-of-use assets are
depreciated on a straight-line basis over the lease term.
The right-of-use assets are subject to impairment in line with the Bank’s policy as described in
Note 6(k).
iii. Intangible assets
The Bank’s intangible assets have definite useful life and primarily include capitalized computer
software. Acquired computer software licences are capitalized on the basis of the costs incurred
to acquire and bring to use the specific software. Development costs that are directly associated
with identifiable and unique software controlled by the Bank are recorded as intangible assets if
the inflow of incremental economic benefits

NMB BANK PLC
(j) Non-financial assets (continued)
iii. Intangible assets (continued)
exceeding costs is probable. Capitalized costs include staff costs of the software development
team and an appropriate portion of relevant overheads. All other costs associated with computer
software, e.g. its maintenance, are expensed when incurred.
(k) Impairment of non-financial assets
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognized for the amount by which
the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher
of an asset’s fair value less costs to sell and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units). The impairment test also can be performed
on a single asset when the fair value less cost to sell or the value in use can be determined reliably.
Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and
are tested annually for impairment, or more frequently if events or changes in circumstances indicate
that they might be impaired. Other assets are tested for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount.
Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal
of the impairment at the end of each reporting period. No indicators of impairment were identified
therefore no non-financial assets were impaired in 2023 (2022: Nil).
(l) Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term
highly liquid investments with original maturities of three months or less. For the Bank, cash and cash
equivalents include cash and non-restricted balances with Bank of Tanzania, Investment securities
and amounts due from other banks. Cash and cash equivalents exclude the cash reserve requirement
held with the Bank of Tanzania. Cash and cash equivalents are carried at amortized cost.
(m) Employee benefits
i. Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave
that are expected to be settled wholly within 12 months after the end of the period in which the
employees render the related service are recognized in respect of employees’ services up to
the end of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current employee benefit obligations in the
statement of financial position.

NMB BANK PLC
(m) Employee benefits (continued)
ii. Other long-term employee benefit obligations
The liabilities for gratuity payments to employees on a contract employment basis are not
expected to be settled wholly within 12 months after the end of the period in which the employees
render the related service. They are therefore measured as the present value of expected future
payments to be made in respect of services provided by employees up to the end of the reporting
period using the projected unit credit method.
iii. Post-employment obligations
The Bank has a statutory requirement to contribute to the Public Service Social Security Fund
(PSSSF) and National Social Security Fund (NSSF), which are defined contribution schemes.
The Bank contributes 15% of the required 20% of gross emoluments to the scheme and the
contributions are recognized as an expense in the period to which they relate. The remaining
5% is deducted from employees. The subsidiary of the Bank does not have any employees.
The Group has no further payment obligations once the contributions have been paid. The
contributions are recognized as employee benefit expenses when they are due. Prepaid
contributions are recognized as an asset to the extent that a cash refund or a reduction in future
payments is available.
(n) Share capital
Ordinary shares are classified as ‘share capital’ in equity. Any premium received over and above
the par value of the shares is classified as ‘share premium’ in equity. Incremental costs directly
attributable to the issue of new shares or options or to the acquisition of a business are shown in
equity as a deduction, net of tax, from the proceeds.
(o) Dividend
Dividend distribution to the Bank’s shareholders is recognized as a liability in the consolidated

and separate financial statements in the period in which the dividends are approved by the Bank’s
shareholders.
(p) Earnings per share
The Group presents basic and diluted earnings per share (EPS) in the consolidated and separate
financial statements. Basic EPS is calculated by dividing the profit or loss attributable to ordinary
shareholders of the Bank by weighted average number of ordinary shares outstanding during the
year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders
and the weighted average number of shares outstanding for the effects of all dilutive potential ordinary
shares.

NMB BANK PLC
(q) Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if
the contract conveys the right to control the use of an identified asset for a period in exchange for
consideration.
The Group applies a single recognition and measurement approach for all leases, except for short-
term leases and leases of low-value assets. The Group recognizes lease liabilities to make lease
payments and right-of-use assets representing the right to use the underlying assets. The policy on
recognition and measurement of right-of-use assets is presented on note 6(j(ii)).
Lease liabilities
At the commencement date of the lease, the Group recognizes lease liabilities measured at the
present value of lease payments to be made over the lease term. The lease payments include fixed
payments (less any lease incentives receivable), variable lease payments that depend on an index
or a rate, and amounts expected to be paid under residual value guarantees. The lease payments
also include the exercise price of a purchase option reasonably certain to be exercised by the Bank
and payments of penalties for terminating the lease, if the lease term reflects exercising the option
to terminate. Variable lease payments that do not depend on an index or a rate are recognized as
expenses in the period in which the event or condition that triggers the payment occurs.
(r) Contingencies and commitments
Transactions are classified as contingencies where the Bank and its subsidiary obligations depend
on uncertain future events. Items are classified as commitments where the Bank and its subsidiary
commit themselves to future transactions if the items will result in the acquisition of assets.
(s) Comparatives
Except when a standard or an interpretation permits or requires otherwise, all amounts are reported
or disclosed with comparative information.
7. ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of consolidated and separate financial statements in conformity with IFRS requires the
use of certain accounting estimates. It also requires management to exercise its judgement in the process
of applying the Group’s accounting policies.
The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities
within the next period. Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances.

NMB BANK PLC
7. ACCOUNTING JUDGEMENTS AND ESTIMATES (CONTINUED)
I. Critical accounting judgement and estimates
Measurement of the expected credit loss allowance
The Group measurement of the expected credit loss allowance for financial assets measured at
amortized cost and FVOCI is an area that requires the use of complex models and significant
assumptions about future economic conditions and credit behaviour (e.g. the likelihood of customers
defaulting and the resulting losses). The Group uses several significant judgements in applying the
accounting requirements for measuring ECL, such as:
• Determination criteria for significant increase in credit risk;

• Establishing the number and relative weightings of forward-looking scenarios for each type of
product/market and the associated ECL; and
• Estimating Probability of default, Exposure at Default and Loss Given Default
Detailed information about the judgement and estimates made by the Group are explained under
note 9.
II. Other accounting judgements and estimates
a) Property and equipment, leased premises refurbishments and intangible assets
Critical estimates are made by the Directors in determining the useful lives of property and equipment,
leased premises refurbishment and intangible assets as well as their residual values.
b) Business model assessment
The business model reflects how the Group manages the financial assets in order to generate cash
flows. That is, whether the Group’s objective is solely to collect the contractual cash flows from the
assets or is to collect both the contractual cash flows and cash flows arising from the sale of assets.
If neither of these is applicable (e.g. financial assets are held for trading purposes), then the financial
assets are classified as part of ‘other’ business model and measured at FVTPL. Factors considered
by the Group in determining the business model for a group of assets include past experience on
how the cash flows for these assets were collected, how the asset’s performance is evaluated and
reported to key management personnel, how risks are assessed and managed and how managers
are compensated. Securities held for trading are held principally for the purpose of selling in the near
term or are part of a portfolio of financial instruments that are managed together and for which there
is evidence of a recent actual pattern of short-term profit-taking. These securities are classified in the
‘other’ business model and measured at FVPL.

NMB BANK PLC
c) Assessment of whether contractual cash flows are Solely Payments of Principal and Interest
(SPPI)
Where the business model is to hold assets to collect contractual cash flows or to collect contractual
cash flows and sell, the Group assesses whether the financial instruments’ cash flows represent
solely payments of principal and interest (the `SPPI test’). In making this assessment, the Group
considers whether the contractual cash flows are consistent with a basic lending arrangement i.e.
interest includes only consideration for the time value of money, credit risk, other basic lending risks
and a profit margin that is consistent with a basic lending arrangement. Where the contractual terms
introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, the
related financial asset is classified and measured at fair value through profit or loss.
d) Taxes
The Group is subjected to several taxes and levies by various government and quasi- government
regulatory bodies. As a rule of thumb, the Group recognizes liabilities for the anticipated tax/levies
payable with utmost care and diligence. However, significant judgement is usually required in the
interpretation and applicability of those taxes /levies. Should it come to the attention of management,
in one way or the other, that the initially recorded liability was erroneous, such differences will impact
on the income and liabilities in the period in which such differences are determined.
The recognition of deferred tax asset relies on an assessment of the probability and sufficiency
of future taxable profit, future reversals of existing taxable temporary differences and ongoing tax
planning and strategies. The judgment takes into consideration the effect of both positive and
negative evidence, including historical financial performance, projections of future taxable income
and future reversals of existing taxable temporary differences.
e) Provisions
The Bank and Group have provided for the liabilities arising out of contractual obligations. Professional
expert advice is taken on establishing litigation provisions. Provisions for legal proceedings and
regulatory matters typically require a higher degree of judgements than other types of provisions.
When cases are at an early stage, accounting judgements can be difficult because of the high degree
of uncertainty associated with determining whether a present obligation exists because of past event,
estimating the probability of outflows and making estimates of the amount of any outflows that may
arise. As matters progress through various stages of the cases, Management together with legal
advisers evaluate on an ongoing basis whether provisions should be recognised, and the estimated
amounts of any such provisions, revising previous judgements and estimates as appropriate.

NMB BANK PLC
f) Fair valuation of financial instruments
The fair value of financial instruments traded in active markets at the financial reporting date is based
on their quoted bid market price or dealer price quotations without any deductions for transaction
costs. For all other financial assets not listed in an active market, the fair value is determined by using
appropriate valuation techniques.
In determining the fair value of government securities that are designated as fair value through other
comprehensive income, the Bank uses yields of similar instruments traded in Bank of Tanzania’s
auctions. Changes in valuation assumptions could affect the reported fair value of financial
instruments. For example, to the extent that the Directors increased the yield rate by 1 basis point,
the fair values would be estimated at TZS 28,392 million (2022: TZS 22,799 million) as compared to
their reported fair value of TZS 28,345 million as at 31 December 2023 (2022: TZS 28,778 million). If
the yield rate had decreased by 1 basis point the fair value would be estimated at TZS 28,298 million
(2022: TZS 22,799 million).
In determining the fair value of unquoted equity investment in TMRC, the Bank used the price of
recent transaction of the shares of the Company. If the price of the shares would have increased/
decreased by 10% the fair value of the investments would have been increased/decreased by TZS
292 million (2022: TZS 292 million).
g) Leases - Estimating the incremental borrowing rate
Except for leases where the Group had sufficient information to identify the rate implicit in the lease,
the Group utilizes Incremental Borrowing Rate (IBR) on nearly all of its leases. The IBR is the rate of
interest that the Group would have to pay to borrow over a similar term, and with a similar security, the
funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic
environment.
The Group and Bank estimate the IBR starting internal borrowing rates as a base rate or using
observable inputs (such as market interest rates) when available, and then adjust that rate for relevant
factors which include Lessee-specific credit risk, amount of the lease payments, Collateralized nature
of the lease, Quality of the lessee’s collateral, lease term and Economic environment of the lease.
If the discount rate used would have increased by 10%, the lease liability of the Group and Bank
would have decreased by 1,786 TZS million (2022: TZS 1,703 million). If the discount rate used
would have decreased by 10%, the lease liability would have decreased by TZS 1,451 million (2022:
TZS 1,867 million).
8. SEGMENT REPORTING
The Group has the following business segments: Treasury, Retail banking, Wholesale banking, and UJVC
(the Bank’s subsidiary). The operating segments are reported in a manner consistent with the internal
reporting provided to the Bank’s Executive Committee (The Chief Operating Decision-Maker), which is
responsible for allocating resources to the reportable segments and assessing their performances. All
operating segments used by the Group meet the definition of a reportable segment under IFRS 8.

NMB BANK PLC
8. SEGMENT REPORTING (CONTINUED)
Operating segments
The Group comprises the following main operating segments:
Wholesale Banking - includes loans & advances to customers, customers deposits and borrowings
(i)
from abroad that are used to finance lending to corporate customers in wholesale banking;
Retail Banking - includes loans & advances to customers, customers deposits, public borrowings
(ii)
like sustainable bond, TMRC borrowings and borrowings from abroad used to facilitate lending in
retail banking;
Treasury - undertakes the Bank’s funding and centralized risk management activities through
(iii)
borrowings, issues of debt securities, use of derivatives for risk management purposes and investing
in liquid assets such as short-term placements and corporate and government debt securities. The
segment includes cash and balances with Bank of Tanzania, placements and balances with other
banks, investments in equity, government and debt securities and public bonds likes of Sukuk Bond
and Shareholders fund;
(iv) UJVC – includes operations of Upanga Joint Venture Company, a subsidiary of the Bank.
Assets and liabilities that don’t fall under these categories are classified as unallocated balances.
Revenue and assets reported to the Bank’s Executive Committee are measured in a manner consistent
with that of the financial statements.
In arriving at segmented net interest income, an internal allocation of interest income and interest
expenses between businesses has been done to recognize and measure how much each source of
funding and each user of funding is contributing to overall profitability of the Bank. Operating expenses
for the Bank have also been allocated to the business using an internally agreed allocation ratio.
All customers are based in Tanzania, except for interbank placements with corresponding banks. There
was no income derived from transactions with a single external customer that amounted to 10% or more
of the Bank’s total income.

NMB BANK PLC
he segment information provided to the Bank’s Executive Committee for the reportable segments for the
T
year ended 31 December 2023 is as follows;
(All amounts in TZS million):
GROUP (Elimina-
Whole-
Retail tion)/
Treasury sale UJVC Total
2023 banking Consolida-
banking
tion
Interest income 219,395 126,006 834,191 - - 1,179,592
Interest expense (4,438) (130,623) (111,016) 3,723 (242,354)
Net Interest Income 214,957 (4,617) 723,175 3,723 937,238

Loan impairment
charges - (17,546) (66,889) - - (84,435)
Net fees and
commission,
trading, foreign
exchange and other
income* 73,025 67,328 328,027 - - 468,380
Employee benefits
expense (26,813) (56,605) (214,505) - - (297,923)
General and adminis-
trative expenses (17,893) (37,774) (143,200) (173) 24 (199,016)
Depreciation and
Amortization (4,529) (9,562) (36,237) (2,031) 2,916 (49,443)
Profit /(loss) before
tax 238,747 (58,776) 590,371 (2,204) 6,663 774,801
Income tax expense (70,845) 17,441 (175,194) (996) - (229,594)
Profit after tax 167,902 (41,335) 415,177 (3,200) 6,663 545,207
Wholesale Retail (Elimination)/

GROUP 2023 Treasury UJVC Total
banking banking Consolidation
Segment assets,
liabilities and
equity
Segment assets 3,946,077 1,973,690 5,982,692 43,096 (84,412) 11,861,143
Unallocated assets - - - - - 318,419
Total assets 3,946,077 1,973,690 5,982,692 43,096 (84,412) 12,179,562
Segment liabilities 194,439 4,288,393 5,418,959 1,658 (41,782) 9,861,666

Unallocated
liabilities - - - - - 225,319
Equity 2,092,577 - - 41,439 (41,439) 2,092,577
Total liabilities
and equity 2,287,016 4,288,393 5,418,959 43,097 (83,221) 12,179,562

NMB BANK PLC
The segment information provided to the Group’s Executive Committee for the reportable segments for
the year ended 31 December 2022 is as follows; (all amounts in TZS million):
GROUP (Continued)
(Elimina-
2022 Wholesale Retail tion)/
Treasury UJVC Total
banking banking Consoli-
dation
Interest income 177,780 70,707 705,169 - - 953,656
Interest expense (7,735) (62,128) (97,444) - 3,287 (164,020)
Net Interest Income 170,045 8,579 607,725 - 3,287 789,636

Loan impairment
charges - (24,308) (56,872) - - (81,180)
Net fees and commis-
sion, trading, foreign
exchange and other
income 53,425 63,765 284,967 4,921 (4,946) 402,132
Employee benefits
expense (23,966) (50,596) (191,734) - - (266,296)
General and
administrative expens-
es (15,741) (33,232) (125,937) (603) 24 (175,489)
Depreciation and
amortization (4,905) (10,356) (39,248) (2,032) 2,903 (53,638)
Profit /(loss) before
tax 178,858 (46,148) 478,901 2,286 1,268 615,165
Income tax expense (53,292) 13,750 (142,693) (1,258) - (183,493)
Profit after tax 125,566 (32,398) 336,208 1,028 1,268 431,672
Segment assets,
liabilities and equity
Segment assets 3,719,911 1,078,768 5,194,447 40,741 (86,760) 9,947,107
Unallocated assets - - - - - 287,445
Total assets 3,719,911 1,078,768 5,194,447 40,741 (86,760) 10,234,552
Segment liabilities 11,815 3,096,885 5,122,789 2,179 (42,473) 8,191,195

Unallocated liabilities - - - - - 353,327
Equity 1,690,030 - - 38,563 (38,563) 1,690,030
Total liabilities and
equity 1,701,845 3,096,885 5,122,789 40,742 (81,036) 10,234,552

NMB BANK PLC
The segment information provided to the Bank’s Executive Committee for the reportable segments for the
(All amounts in TZS million):
BANK Wholesale Retail

Treasury Total
banking banking
2023
Interest income 219,395 126,006 834,191 1,179,592
Interest expense (4,438) (130,623) (111,016) (246,077)
Net Interest Income 214,957 (4,617) 723,175 933,515
Loan impairment charges - (17,546) (66,889) (84,435)

Net fees and commission, trading, foreign
exchange and other income 73,025 67,328 328,052 468,405
Employee benefits expense (26,813) (56,605) (214,505) (297,923)
General and administrative expenses (17,893) (37,774) (143,199) (198,866)
Depreciation and Amortization (4,529) (9,562) (36,238) (50,329)
Profit /(loss) before tax 238,747 (58,776) 590,396 770,367

Income tax expense (70,845) 17,441 (175,195) (228,599)
Profit after tax 167,902 (41,335) 415,201 541,768
Segment assets, liabilities and equity
Segment assets 3,946,077 1,973,690 5,982,691 11,902,458
Unallocated assets - - - 318,419
Total assets 3,946,077 1,973,690 5,982,691 12,220,877
Segment liabilities 194,653 4,273,203 5,402,023 9,869,879

Unallocated liabilities - - - 267,330
Equity 2,083,668 - - 2,083,668
Total liabilities and equity 2,278,321 4,273,203 5,402,023 12,220,877
*Included in net fees and commission, trading, foreign exchange and other income is:
reasury – TZS 28 million from fees and commission income, TZS (364) million from fees and commission
T
expense, TZS 7,527 million from trading income and TZS 65,835 million from foreign exchange income.
Wholesale banking – TZS 70,255 million from fees and commission income and TZS (2,927) from fees

and commission expense.
etail banking – TZS 399,023 million from fees and commission income, TZS (99,528) million from fees
R
and commission expense and TZS 28,531 million (Bank: 28,556 million) from other income.

NMB BANK PLC
The segment information provided to the Bank’s Executive Committee for the reportable segments for the
(all amounts in TZS million).
BANK (Continued) Wholesale Retail

Treasury Total
banking banking
2022
Interest income 177,780 70,707 705,169 953,656
Interest expense (7,735) (62,128) (97,444) (167,307)
Net Interest Income 170,045 8,579 607,725 786,349
Loan impairment charges - (24,308) (56,872) (81,180)

Net fees and commission, trading,
foreign exchange and other income 53,425 63,765 284,967 402,157
Employee benefits expense (23,966) (50,596) (191,734) (266,296)
General and administrative expenses (15,741) (33,231) (125,938) (174,910)
Depreciation and Amortization (4,905) (10,356) (39,248) (54,509)
Profit /(loss) before tax 178,858 (46,147) 478,900 611,611

Income tax expense (53,292) 13,750 (142,693) (182,235)
Profit after tax 125,566 (32,397) 336,207 429,376
Segment assets, liabilities and
equity
Segment assets 3,719,911 1,078,768 5,194,447 9,993,126
Unallocated assets - - - 283,564
Total assets 3,719,911 1,078,768 5,194,447 10,276,690
Segment liabilities 11,815 3,096,885 5,122,789 8,231,489

Unallocated liabilities - - - 360,640
Equity 1,684,561 - - 1,684,561
Total liabilities and equity 1,696,376 3,096,885 5,122,789 10,276,690
9. FINANCIAL RISK MANAGEMENT

The Bank’s subsidiary does not have significant operations (Note 25 (b)). The financial assets and
liabilities of the Bank’s subsidiary mainly consist of loans from related parties that are eliminated on
consolidation and other assets and liabilities that are not material to the Group. Consequently, the financial
risk management information presented below relates only to the Bank.
The Bank’s business involves taking on risks in a targeted manner and managing them professionally.
The core functions of the Bank’s risk management are to identify all key risks for the Bank, measure these
risks, manage the risk positions and determine capital allocations. The Bank regularly reviews its risk
management policies and systems to reflect changes in markets, products and best market practice. The
Bank’s aim is therefore to achieve an appropriate balance between risk and return and minimize potential
adverse effects on the Bank’s financial performance.
NMB BANK PLC
9. FINANCIAL RISK MANAGEMENT (CONTINUED)
Risk management is carried out by the Risk Department under policies approved by the Board of Directors.
The Board provides written principles for overall risk management, as well as written policies covering
specific areas, such as credit risk, market risk (foreign exchange risk, interest risk and price risk) and
liquidity risk. In addition, internal audit is responsible for the independent review of risk management and
the control environment.
9.1 Credit risk
The Bank takes on exposure to credit risk, which is the risk that the counterparty will cause a financial
loss to the Bank by failing to discharge an obligation. Credit risk is the most important risk for the Bank’s
business. Management, therefore, carefully manages its exposure to credit risk. Credit exposures
arise principally in lending activities that lead to loans and advances and investment activities that
bring debt securities and other bills into the Bank’s asset portfolio. There is also credit risk in off-
balance sheet financial instruments, such as loan commitments. The credit risk management and
control are centralised in the credit risk Executive Committee of the Bank and reported to the Board
of Directors and heads of department regularly.
9.1.1 Credit risk measurement
Loans and advances
The estimation of credit exposure for risk management purposes is complex and requires the
use of models, as the exposure varies with changes in market conditions, expected cash flows
and the passage of time. The assessment of credit risk of a portfolio of assets entails further
estimations as to the likelihood of defaults occurring, of the associated loss ratios and of default
correlations between counterparties. The Group measures credit risk using Probability of Default
(PD), Exposure at Default (EAD) and Loss Given Default (LGD). This approach is similar to the
one used for the purposes of measuring Expected Credit Loss (ECL) under IFRS 9. The loan
book is split into term loans and overdrafts (secured & unsecured) and off-balance sheet items
(these include letters of credit and guarantees, etc.).
The Bank considers term loans and advances to be in default if the repayment of the loan
instalment (principal and accrued interest) is more than 90 days past due for all product types. A
revolving facility is in default if the facility is drawn above the limit for more than 90 consecutive
days during the lifetime of the facility or if the drawn amount is still outstanding 90 days after
maturity of the facility or if a related term loan is in default.
For regulatory purposes and for internal monitoring of the quality of the loan portfolio, all
customers are segmented into five rating classes as shown below:
Bank’s rating Number of days past due IFRS Staging

Current 0 - 30 Stage 1
Especially mentioned 31 - 90 Stage 2
Sub-standard 91 -180 Stage 3
Doubtful 181 - 360 Stage 3
Loss 361 and more Stage 3

NMB BANK PLC
9.1 Credit risk (continued)
9.1.1 Credit risk measurement (continued)
Loans and advances (continued)

For internal monitoring of balances with other banks, banks are rated into three categories
based on their financial position. Additionally, qualitative characteristics are taken into
consideration when scoring a counterparty. Counterparts with a history of default are usually
rated as Medium to High risk and dealing limits are cancelled.
Bank’s rating Score Staging

Defaulted Above 3 Stage 3
High 2.51 - 3 Stage 2
Medium 1.51 – 2.5 Stage 1
Low 1 -1.51 Stage 1
The Bank’s balances with other banks as at 31 December 2023, are all low risk.

NMB BANK PLC
9.1.1 Credit risk measurement (continued)
Loans and advances (continued)
The loans and advances to customers portfolio analysed for regulatory purposes is shown below:
As at 31 December 2023 As at 31 December 2022
Amounts in TZS’ Unse- Agri Unse- Agri

Secured Overdraft Total Secured Overdraft Total
Millions cured business cured business
Current 2,010,730 4,640,873 574,297 288,136 7,514,036 1,095,587 4,059,865 470,028 229,762 5,855,242
Especially mentioned 131,265 16,560 30,962 16,917 195,704 123,142 10,555 50,200 8,444 192,341
Sub-standard 19,888 10,624 3,107 3,997 37,616 9,457 10,508 17,958 736 38,659
Doubtful 13,310 16,767 52,545 1,638 84,260 12,315 10,661 14,498 4,671 42,145
Loss 32,120 21,001 41,254 23,635 118,010 44,886 22,145 26,095 21,163 114,289
Gross carrying
amount 2,207,313 4,705,825 702,165 334,323 7,949,626 1,285,387 4,113,734 578,779 264,776 6,242,676
Loss allowance (132,879) (40,828) (52,287) (16,707) (242,701) (124,370) (37,248) (43,260) (23,195) (228,073)
Carrying amount 2,074,434 4,664,997 649,878 317,616 7,706,925 1,161,017 4,076,486 535,519 241,581 6,014,603

NMB BANK PLC
9 FINANCIAL RISK MANAGEMENT (CONTINUED)
9.1.2 Risk limit control and mitigation policies
(a) Lending limits
The Bank manages limits and controls concentrations of credit risk wherever they are
identified to individual counterparties and groups, and to industries. The Bank structures
the levels of credit risk it undertakes by placing limits on the amount of risk accepted in
relation to one borrower, or groups of borrowers, and to industry segments. Such risks are
monitored on a revolving basis and subject to an annual or more frequent review, when
considered necessary.
The exposure to any one borrower, including banks, is further restricted by sub-limits
covering on and off-balance sheet exposures. Actual exposures against limits are monitored
daily. Exposure to credit risk is also managed through regular analysis of the ability of
borrowers and potential borrowers to meet interest and capital repayment obligations and
by changing these lending limits where appropriate.
(b) Collateral
The Bank employs a range of policies and practices to mitigate credit risk. The most
traditional of these is the taking of security for funds advanced, which is common practice.
The Bank implements guidelines on the acceptability of specific classes of collateral or
credit risk mitigation. The principal collateral types for loans and advances are:
• Mortgages over residential and commercial properties;

• Cash collaterals;
• Chattel Mortgages
• Charges over business assets such as inventory and accounts receivable;
• Guarantees from government and financial institutions; and
• Charges over financial instruments such as debt securities and equities.
Collateral held as security for financial assets other than loans and advances depends on
the nature of the instrument. Debt securities, treasury and other eligible bills are generally
unsecured, with the exception of asset-backed securities and similar instruments, which
are secured by portfolios of financial instruments.
The Bank’s policies regarding obtaining collateral have not significantly changed during
the reporting period and there has been no significant change in the overall quality of the
collateral held by the Bank since the prior period.

NMB BANK PLC
9 FINANCIAL RISK MANAGEMENT (CONTINUED)
9.1.2 Risk limit control and mitigation policies (continued)
(b) Collateral (continued)
Apart from other categories, the Bank has been closely monitoring collateral held for
financial assets considered to be credit-impaired, as it becomes more likely that the Bank
will take possession of collateral to mitigate potential credit losses. Financial assets that
are credit-impaired and related collateral held in order to mitigate potential losses are
shown below:
Credit impaired
assets
Expected
(Amounts in TZS Gross Carrying Market Value
Credit
Millions) exposure amount of Collateral
Losses
At 31 December 2023
Secured 65,318 22,927 42,391 116,157
Unsecured 48,392 25,103 23,289 -
Overdraft 29,270 12,631 16,639 33,610
Agribusiness 96,906 41,620 55,286 218,291
Total 239,886 102,281 137,605 368,058
At 31 December 2022
Secured 66,658 28,039 35,936 63,146
Unsecured 43,314 24,602 18,712 -
Overdraft 26,570 12,932 13,639 22,452
Agribusiness 58,551 36,075 22,823 27,872
Total 195,093 101,648 91,110 113,470
(c) Credit-related commitments
The main purpose of these instruments is to ensure that funds are available to a customer
as required. Guarantees and standby letters of credit hold the same credit risk as loans.
Documentary and commercial letters of credit - which are written undertakings by the
Bank on behalf of a customer authorizing a third party to draw drafts on the Bank up to a
stipulated amount under specific terms and conditions - are collateralized by the underlying
shipments of goods to which they relate. Undrawn commitments represent unused portions
of authorizations to extend credit in the form of loans, guarantees or letters of credit. With
respect to credit risk on undrawn commitments, the Bank is potentially exposed to loss in an
amount equal to the total unused commitments. However, the likely amount of loss is less
than the total unused commitments, as most undrawn commitments are contingent upon
customers maintaining specific credit standards. The Bank monitors the term to maturity of
credit commitments because longer-term commitments generally have a greater degree of
credit risk than shorter-term commitments

NMB BANK PLC
9.1.3 Expected credit loss measurement
IFRS 9 outlines a ‘three-stage’ model for impairment based on changes in credit quality
since initial recognition as summarized below:
• A financial instrument that is not credit-impaired on initial recognition is classified in

‘Stage 1’ and has its credit risk continuously monitored by the Bank.
• If a significant increase in credit risk (‘SICR’) since initial recognition is identified, the
financial instrument is moved to ‘Stage 2’ but is not yet deemed to be credit-impaired.
Refer to note 9.1.3.1 for a description of how the Bank determines when a significant
increase in credit risk has occurred.
• If the financial instrument is credit-impaired, the financial instrument is then moved to
‘Stage 3’. Please refer to note 9.1.3.2 for a description of how the Bank defines credit-
impaired and default.
• Financial instruments in Stage 1 have their ECL measured at an amount equal to the
portion of lifetime expected credit losses that result from default events possible within
the next 12 months. Instruments in Stages 2 or 3 have their ECL measured based on
expected credit losses on a lifetime basis. Please refer to note 9.1.3.3 for a description
of inputs, assumptions and estimation techniques used in measuring the ECL.
• A pervasive concept in measuring ECL in accordance with IFRS 9 is that it should
consider forward-looking information. Note 9.1.3.4 includes an explanation of how the
Bank has incorporated this in its ECL models.
• Purchased or originated credit-impaired financial assets are those financial assets that
are credit-impaired on initial recognition. Their ECL is always measured on a lifetime
basis (Stage 3).
Grouping of instruments for losses measured on a collective basis
For expected credit loss provisions modelled on a collective basis, a grouping of exposures
is performed based on shared risk characteristics, such that risk exposures within a group
are homogeneous.
In performing this grouping, there must be sufficient information for the group to be
statistically credible. Where sufficient information is not available internally, the Bank
has considered benchmarking internal/external supplementary data to use for modelling
purposes. The characteristics and any supplementary data used to determine groupings
are outlined below:
• Product type (e.g. Overdraft, Term loans, Letter of credit etc.)

• Repayment type (e.g. Repayment/Interest only)
• Loan to value ratio for retail mortgages
• Credit risk grading
• Industry – Agribusiness loans are assessed independently in their own model
• Collateral type – whether secured or unsecured

NMB BANK PLC
9.1.3: Expected credit loss measurement (continued)
Grouping of instruments for losses measured on a collective basis (Continued)
The following exposures are assessed individually:

• Stage 3 loans, secured loans and overdraft facilities
• Properties in repossession proceedings
The appropriateness of groupings is monitored and reviewed on a periodic basis by the

Credit Risk team.
The Bank groups its exposures based on product type and has specified the following
default product segments under the ‘product type’ criteria where each product is identified
by a specific product code.
Secured term loans - This group comprises all term loan products secured by collateral

i.e. legal mortgage, guarantee or cash cover. Products in this group consist of Corporate,
MSE, Special Asset Loan, Invoice Financing loans, Personal loans with cash cover, SME,
Staff mortgage and Car loans.
Unsecured term loans - This comprises all unsecured facilities. Products in this group

consist of Staff loans, Salaries Workers’ Loans and salary advance.
Agribusiness loans – This group comprises all term loans and overdraft facility advances

to customers engaged in agriculture operations. It comprises customers classified as SME
and Corporates.
Overdrafts – This group comprises all overdraft advances to customers issued to SME

and Corporate customers other than those included in Agribusiness.
O
ff balance sheet items – This group comprises all financial guarantees, letter of credit
and unutilized loan commitments.
9.1.3.1 Significant increase in credit risk (SICR)

The Bank considers a financial instrument to have experienced a significant increase in
credit risk when one or more of the following quantitative, qualitative or backstop criteria
have been met:
Qualitative criteria
Loans and advances to customers
A loan facility is assessed to have significant increase in credit risk if the borrower meets
one or more of the following criteria:
• Direct debit cancellation;
• Extension to the terms granted;

NMB BANK PLC
9.1.3.1 Significant increase in credit risk (SICR) (Continued)
• Previous arrears within the last 12 months;

• Significant adverse changes in business, financial and/or economic conditions in which
the borrower operates;
• Actual or expected forbearance or restructuring;
• Actual or expected significant adverse change in operating results of the borrower;
• Significant change in collateral value (secured facilities only) which is expected to
increase risk of default;
• Early signs of cash flow/liquidity problems such as delay in servicing of trade creditors/
loans; and
• Identified fraudulent activities in issuing the loan
The assessment of SICR incorporates forward-looking information and is performed on

an annual basis at a portfolio level. A watch list is used to monitor credit risk on a monthly
basis through the Loan Portfolio Quality (LPQ) committee. This assessment is performed
at the counterparty level. The criteria used to identify SICR are monitored and reviewed
periodically for appropriateness by the independent Credit Risk team.
Loans and advances to banks
The following qualitative factors are considered as indicators of significant increase in

credit risk
• Significant counterparty management restructuring or re-organisation due to prolonged

poor performance of the entity;
• Significant change in regulatory, economic, or technological environment of the
borrower that results in a significant change in ability to meet its debt obligations; and
• Significant reductions in financial support from a parent entity that resulted to significant
adverse change of operating results of the counterparty.
9.1.3.2 Definition of default and credit impaired assets
Government securities

Government securities are considered to have experienced a significant increase in credit
risk when at least one of the following factors have occurred:
• The Government has received a low credit rating (“C”) by the international rating
agencies; or
• The Government has initiated debt restructuring process.

NMB BANK PLC
9.1.3.2 Definition of default and credit impaired assets (Continued)
Quantitative criteria:

A backstop is applied, and the financial instrument considered to have experienced a
significant increase in credit risk if the borrower is more than 30 days past due on its
contractual payments.
Low credit risk

Government securities such as treasury bills and bonds measured at amortized cost and
at fair value through other comprehensive income are classified as low credit risk financial
instruments and impairment will be recorded only if there is evidence of expected default
on Government securities. It is important to note that there is no history of default on the
Tanzanian Government securities.
T
he Bank defines a financial instrument as in default, which is fully aligned with the definition
of credit-impaired, when it meets one or more of the following criteria:
Quantitative

The Bank considers a term loan to be in default if the repayments on the loan are more
than 90 days past due for all product types. The Bank considers Agribusiness loans to be
in default if the bullet repayment on the loan is more than 90 days past due and further
considering a revolving facility in default if the facility is drawn above the loan limit for more
than 90 consecutive days during the lifetime of the facility or if the drawn amount is still
outstanding 90 days after maturity of the facility.
The borrower meets unlikeliness to pay criteria, which indicates the borrower is in significant
financial difficulty. These are instances where: -
• the borrower is in long-term forbearance;
• the borrower is deceased;
• the borrower is insolvent;
• the borrower is in breach of financial covenant(s);
• an active market for that financial asset has disappeared because of financial difficulties;
• concessions have been made by the lender relating to the borrower’s financial difficulty;
• fraudulent activities were conducted in issuance of the loan;
• it is becoming probable that the borrower will enter bankruptcy; and
• financial assets are purchased or originated at a deep discount that reflects incurred
credit losses.

NMB BANK PLC
9.1.3.2: Definition of default and credit impaired assets (continued)
Qualitative (Continued)

The criteria above have been applied to all financial instruments held by the Bank and are
consistent with the definition of default used for internal credit risk management purposes.
The default definition has been applied consistently to model the Probability of Default
(PD), Exposure at Default (EAD) and Loss given Default (LGD) throughout the Bank’s
expected loss calculations.

F
or balances due from other banks, below events are considered as default when they
occur
• When repayments of interest and principal are not done on time as per contractual
schedules to the extent of 30 days delay;
• When counterpart is taken under management by Statutory Manager;
• When counterpart licence has been revoked by Central Banks; and
• When counterpart has been declared bankrupt by responsible bodies like Registration,
Insolvency and Trusteeship Agency (RITA) and Court.
For government securities, below events are considered as default when they occur: -
• When repayments of interest and principal are not made on time as per contractual
schedules to the extent of 30 days delay;
• When the Government is downgraded to below “C” Status by International Rating
Agency such as Moody’s. S&P or Fitch; and
• When the Government is declared default/bankrupt by responsible agencies like World
Bank or IMF.
9.1.3.3: Measuring ECL — Explanation of inputs, assumptions and estimation techniques

The Expected Credit Loss (ECL) is measured on either a 12-month (12M) or Lifetime
basis depending on whether a significant increase in credit risk has occurred since initial
recognition or whether an asset is considered to be credit-impaired. Expected credit losses
are the discounted product of the Probability of Default (PD), Exposure at Default (EAD),
and Loss Given Default (LGD), defined as follows:
• The PD represents the likelihood of a borrower defaulting on its financial obligation
(as per “Definition of default and credit-impaired” above), either over the next 12
months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation. The
Lifetime PD is developed by applying a maturity profile to the current 12M PD. The
maturity profile looks at how defaults develop on a portfolio from the point of initial
recognition throughout the lifetime of the loans. The maturity profile is based on
historical observed data and is assumed to be the same across all assets within a
portfolio and credit grade band. This is supported by historical analysis.

NMB BANK PLC
9.1.3.3: Measuring ECL — Explanation of inputs, assumptions and estimation techniques

(Continued)
• EAD is based on the amounts the Bank expects to be owed at the time of default,
over the next 12 months (12M EAD) or over the remaining lifetime (Lifetime EAD). For
example, for a revolving commitment, the Bank includes the current drawn balance
plus any further amount that is expected to be drawn up to the current contractual limit
by the time of default, should it occur.
• The Bank estimates the Loss Given Default for unsecured term loans based on
recoveries on loans that defaulted and were written off and collections from loans that
defaulted but were not written off. On secured term loans and overdraft facilities the
Bank considers collateral value discounted using an effective interest rate. An average
LGD obtained from NPL collections and recoveries of secured segment applied for
few credit facilities under secured segment with no collaterals attachment following
the agreed special arrangement on securities.
• The probability of default for off-balance sheets items has been estimated at 0.05%
based on Basel due to limitation of historical default data and loss given default
estimated using collateral value discounted using an effective interest rate.
9.1.3.4: Forward-looking information incorporated in the ECL models
The assessment of PDs and the calculation of ECL incorporate forward-looking information.
The Bank has performed historical analysis and identified the key macro-economic
variables affecting credit risk and expected credit losses for each portfolio. These macro-
economic variables and their associated impact on the PD vary between secured and
unsecured loans and off-balance sheet exposure. Expert judgment has also been applied
in this process. Forecasts of these macro-economic variables (the “base scenario”) are
provided by the Bank economists on an annual basis and provide the best estimate view
of the economy over the next five years.
After three years, to project the economic variables out for the full remaining lifetime of
each instrument, a mean reversion approach has been used, which means that economic
variables tend to reflect either a long run average rate (e.g. unemployment) or long run
average growth rate (e.g. GDP, private credit growth) over a period of the past three years.
The impact of these economic variables on the PD has been determined by performing
statistical regression analysis to understand the impact changes in these variables have
had historically on default rates.
In addition to the base economic scenario, the Bank economists also provide other
possible scenarios along with scenario weightings. The number of other scenarios used is
set based on the analysis of each major segment type to ensure non-linearity is captured.
The number of scenarios and their attributes are reassessed at each reporting date. The
Bank concluded that three scenarios appropriately captured non-linearity.

NMB BANK PLC
9.1.3.4: Forward-looking information incorporated in the ECL models (Continued)
The scenario weightings are determined by a combination of statistical analysis and expert
economic judgement, taking account of the range of possible outcomes each chosen
scenario is representative of. Following this assessment, the Bank measures ECL as
either a probability weighted 12-month ECL (Stage 1), or a probability weighted lifetime
ECL (Stages 2 and 3). These probability weighted ECLs are determined by running each
scenario through the relevant ECL model and multiplying it by the appropriate scenario
weighting (as opposed to weighting the inputs).
As with any economic forecasts, the projections and likelihoods of occurrence are subject
to a high degree of inherent uncertainty and therefore the actual outcomes may be
significantly different to those projected. The Bank considers these forecasts to represent
its best estimate of the possible outcomes and has analyzed the non-linearities and
asymmetries within the Bank’s different portfolios to establish that the chosen scenarios
are appropriately representative of the range of possible scenarios.
Economic variable assumptions

The review of economic variables has been done on a regular basis whereby Gross
National Expenditure (GNE) and Credit Growth in Private Sector were applied in 2023.
The most significant period-end assumptions used for the ECL estimate as at 31 December
2023 and 31 December 2022 are set out below.
Credit growth in private

2022 2023 2024 2025 2026
sector
Base 5.2% 9.6% 6.0% 3.0% 4.5%
Upside 7.2% 12.0% 8.0% 4.5% 5.2%
Downside 4.5% 7.2% 5.2% 1.7% 3.0%
Credit growth in private

2021 2022 2023 2024 2025
sector
Base 4.5% 5.2% 9.6% 6.0% 3.0%
Upside 5.2% 7.2% 12.0% 8.0% 4.5%
Downside 3.0% 4.5% 7.2% 5.20% 1.7%

NMB BANK PLC
9.1.3.4: Forward-looking information incorporated in the ECL models (Continued)
During the year the Bank’s model incorporated the new assumption of the Gross National
Expenditure (GNE) as shown in the following table.
GNE as percentage of GDP 2022 2023 2024 2025 2026

Base 59% 62% 59% 57% 58%
Upside 64% 67% 66% 58% 62%
Downside 57% 59% 58% 55% 57%
GNE as percentage of GDP 2021 2022 2023 2024 2025

Base 62% 59% 62% 59% 57%
Upside 64% 64% 67% 66% 58%
Downside 59% 57% 59% 58% 55%
For the years 2022 and 2023, the weightings assigned to each economic scenario were
80%, 10% and 10% for “base”, “upside” and “downside” respectively.
If the credit growth in private sector changed by 10% and the GNE changed by 10%, the
changes in expected loss allowance would have been as follows:
Sensitivity Analysis 2023 2022

Higher Lower Higher Lower
(Amounts in TZS Millions)
end end end end
Secured term loans 3,768 (3,515) 2,253 (2,223)
Unsecured term loans 3,372 (3,145) 1,730 (1,579)
Overdraft facilities 1,654 (1,542) 3,021 (3,021)
Agribusiness 1,017 (949) 849 (822)
Total expected credit loss 9,810 (9,150) 7,853 (7,645)

NMB BANK PLC
9.1.4 Credit risk exposure
9.1.4.1: Maximum exposure to credit risk – Financial instruments subject to impairment
The following tables contain an analysis of the credit risk exposure of financial instruments for which an ECL allowance is recognized. The gross carrying
amount of financial assets below also represents the Bank’s maximum exposure to credit risk on these assets
Stage 1 Stage 2 Stage 3 Grand Total

Gross Gross Gross Gross
Model Carrying Carrying ECL Carrying ECL Carrying ECL
Segment Amount ECL Amount Amount Amount Amount Amount Amount Amount
2023
Agribusiness 574,297 9,844 30,962 823 96,906 41,620 702,165 52,287
Overdraft 288,136 3,940 16,917 136 29,270 12,631 334,323 16,707
Secured 2,010,730 9,947 131,265 100,005 65,318 22,927 2,207,313 132,879
Unsecured 4,640,873 15,527 16,560 199 48,392 25,103 4,705,825 40,828
Total 7,514,036 39,257 195,704 101,163 239,886 102,281 7,949,626 242,701
2022
Agribusiness 470,028 4,354 50,200 2,831 58,551 36,075 578,779 43,260
Overdraft 229,762 4,294 8,444 5,969 26,570 12,932 264,776 23,195
Secured 1,095,587 6,862 123,142 89,469 66,658 28,039 1,285,387 124,370
Unsecured 4,059,865 12,399 10,555 247 43,314 24,602 4,113,734 37,248
Total 5,855,242 27,909 192,341 98,516 195,093 101,648 6,242,676 228,073

NMB BANK PLC
9.1.4 Credit risk exposure (continued)

(Continued)
(a) Secured term loans ECL Staging

Stage 1 Stage 2 Stage 3
Amounts in 12-month Lifetime Lifetime
TZS’ Millions ECL ECL ECL Total
As at 31 December 2023
Current 2,010,730 - - 2,010,730
Especially mentioned - 131,265 - 131,265
Sub-standard - - 19,888 19,888
Doubtful - - 13,310 13,310
Loss - - 32,120 32,120
Gross carrying amount 2,010,730 131,265 65,318 2,207,313

Loss allowance (9,947) (100,005) (22,927) (132,879)
Carrying amount 2,000,783 31,260 (42,391) 2,074,434
Current 1,095,587 - - 1,095,587
Sub-standard - - 9,457 9,457
Doubtful - - 12,315 12,315
Loss - - 44,886 44,886
Gross Carrying amount 1,095,587 123,142 66,658 1,285,387

Loss allowance (6,862) (89,469) (28,039) (124,370)
Carrying amount 1,088,725 33,673 38,619 1,161,017

NMB BANK PLC

(Continued)
(b) Unsecured term loans ECL Staging

Current 4,640,873 - - 4,640,873
Sub-standard - - 10,624 10,624
Doubtful - - 16,767 16,767
Loss - - 21,001 21,001
Gross carrying amount 4,640,873 16,560 48,392 4,705,825

Loss allowance (15,527) (199) (25,103) (40,828)
Carrying amount 4,625,346 16,361 23,289 4,664,997
Current 4,059,865 - - 4,059,865
Sub-standard - - 10,508 10,508
Doubtful - - 10,661 10,661
Loss - - 22,145 22,145
Gross Carrying amount 4,059,865 10,555 43,314 4,113,734

Loss allowance (12,399) (247) (24,602) (37,248)
Carrying amount 4,047,466 10,308 18,712 4,076,486

NMB BANK PLC

(Continued)
(c) Agribusiness ECL Staging

Current 574,297 - - 574,297
Sub-standard - - 3,107 3,107
Doubtful - - 52,545 52,545
Loss - - 41,254 41,254
Gross carrying amount 574,297 30,962 96,906 702,165

Loss allowance (9,844) (823) (41,620) (52,287)
Carrying amount 564,453 30,139 55,286 649,878
Current 470,028 - - 470,028
Sub-standard - - 17,958 17,958
Doubtful - - 14,498 14,498
Loss - - 26,095 26,095
Gross Carrying amount 470,028 50,200 58,551 578,779

Loss allowance (4,354) (2,831) (36,065) (43,250)
Carrying amount 465,674 47,369 22,486 535,529

NMB BANK PLC

(Continued)
(d) Overdraft ECL Staging

Current 288,136 - - 288,136
Sub-standard - - 3,997 3,997
Doubtful - - 1,638 1,638
Loss - - 23,635 23,635
Gross carrying amount 288,136 16,917 29,270 334,323

Loss allowance (3,940) (136) (12,631) (16,707)
Carrying amount 284,196 16,781 16,639 317,616
Current 229,762 - - 229,762
Sub-standard - - 736 736
Doubtful - - 4,671 4,671
Loss - - 21,163 21,163
Gross Carrying amount 229,762 8,444 26,570 264,776

Loss allowance (4,294) (5,969) (12,932) (23,195)
Carrying amount 225,468 2,475 13,638 241,581

NMB BANK PLC

(Continued)
2023 2022
(e) Off balance sheet exposures TZS’ Millions TZS’ Millions
Guarantees and Indemnities 1,028,592 558,225
Undrawn Commitments 319,530 242,993
Acceptances and letters of credit 1,067,864 1,151,212
Gross carrying amount 2,415,986 1,952,430
Loss allowance (411) (275)
Net carrying amount 2,415,575 1,952,155
Provision for loss allowance relating to off-balance sheet exposures is disclosed under
other liabilities.
9.1.5: Loss allowance
The loss allowance recognized in the period is impacted by a variety of factors, as described
below:
• Transfers between Stage 1 and Stages 2 or 3 due to financial instruments experiencing
significant increases (or decreases) of credit risk or becoming credit-impaired in the
period, and the consequent “step up” (or “step down”) between 12-month and Lifetime
ECL;
• Additional allowances for new financial instruments recognised during the period, as
well as credit for financial instruments de-recognised in the period;
• Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the
period, arising from regular refreshing of inputs to models;
• Discounts unwind within ECL due to the passage of time, as ECL is measured on a
present value basis. This change is incorporated within maintenance stage and other
adjustments category.
• Foreign exchange retranslations for assets denominated in foreign currencies and
other movements, this change is incorporated within maintaining stage and other
adjustments category; and
• Financial assets derecognised during the period and write-offs of allowances related to
assets that were written off during the period.
All changes implemented in model assumptions particularly on forward looking information,

incorporation of collaterals in estimation of Loss Given Default (LGD) and changes in model
assumptions in estimation of Loss Given Default (LGD) has reasonably impacted the loss
allowance as of 31 December 2023.

NMB BANK PLC
9.1.5 Loss allowance (continued)
9.1.5.1 Changes in loss allowance
The following tables explain the changes in the loss allowance between the beginning and the end
of the annual period due to these factors:
Total Loans and advances
12-month Lifetime Lifetime
Amounts in TZS’
ECL ECL ECL Total
As at 1 January 2023 27,909 98,516 101,648 228,073
Segment Reallocation - - - -
Movements
Transfer from stage 1 to stage 2 (117) 117 - -
Transfer from stage 1 to stage 3 (703) - 703 -
Transfer from stage 2 to stage 1 546 (546) - -
Transfer from stage 2 to stage 3 - 149 (149) -
Transfer from stage 3 to stage 1 559 - (559) -
Transfer from stage 3 to stage 2 - 2,912 (2,912) -
Maintained Stage and other movements 22,326 95,572 98,367 216,265
New Financial assets originated or purchased 15,061 134 4,032 19,227
Financial assets that have been de-recognized (26,314) (95,673) (54,545) (176,532)
Net profit or loss charge during the period 11,358 2,665 44,937 58,960
Other movements with no profit or loss impact
Write-offs (10) (18) (44,304) (44,332)
As at 31 December 2023 39,257 101,163 102,281 242,701
As at 1 January 2022 43,425 84,378 82,183 209,986

Segment Reallocation (4) - (85) (89)
Movements
Transfer from stage 1 to stage 3 (4,037) - 4,037 -
Transfer from stage 3 to stage 1 1,133 - (1,133) -
Net profit or loss charge during the period (15,478) 16,978 44,746 46,246
Other movements with no profit or loss impact
Write-offs (34) (2,840) (25,196) (28,070)
As at 31 December 2022 27,909 98,516 101,648 228,073
NMB BANK PLC
9.1.5.1 Changes in loss allowance (continued)
(a) Secured term loans Stage 1 Stage 2 Stage 3

Amounts in TZS’ ECL ECL ECL Total
As at 1 January 2023 6,862 89,469 28,039 124,370
Movements - - - -
New Financial assets originated or purchased 292 5 202 499
Net profit or loss charge during the period 3,086 10,538 6,251 19,875
Other movements with no profit or loss
impact
Write-offs (1) (2) (11,363) (11,366)
As at 31 December 2023 9,947 100,005 22,927 132,879
As at 1 January 2022 6,145 81,159 36,088 123,392

Movements
Transfer from stage 2 to stage 3 - - - -
Financial assets that have been de-recognized (6,142) (786) (17,130) (24,058)
Net profit or loss charge during the period 718 8,318 4,532 13,568
impact
Write-offs (1) (8) (12,581) (12,590)
As at 31 December 2022 6,862 89,469 28,039 124,370
NMB BANK PLC
(b) Unsecured term loans Stage 1 Stage 2 Stage 3

As at 1 January 2023 12,400 246 24,602 37,248
Movements - - - -
Maintained Stage and other movements 1,510 (168) 21,125 22,467
Net profit or loss charge during the period 3,136 (33) 11,079 14,182
impact
Write-offs (9) (14) (10,578) (10,601)
As at 31 December 2023 15,527 199 25,103 40,829
As at 1 January 2022 13,537 160 20,577 34,274

Movements
Maintained Stage and other movements 5,053 (733) 10,050 14,370
Net profit or loss charge during the period (1,119) 167 11,706 10,754
impact
Write-offs (18) (81) (7,681) (7,780)
As at 31 December 2022 12,400 246 24,602 37,248
NMB BANK PLC
(c) Agribusiness loans Stage 1 Stage 2 Stage 3

As at 1 January 2023 4,354 2,831 36,075 43,260
Movements - - - -
Maintained Stage and other movements 7,400 (4,091) 41,393 44,702
Net profit or loss charge during the period 5,490 (2,008) 22,128 25,610
impact
Write-offs (1) - (16,583) (16,584)
As at 31 December 2023 9,843 824 41,620 52,287
As at 1 January 2022 17,194 3,011 19,703 39,908

Segment Reallocation (3) - - (3)
Movements
Maintained Stage and other movements (4,596) 296 24,531 20,231
impact
Write-offs (13) (2,744) (1,867) (4,624)
As at 31 December 2022 4,354 2,831 36,075 43,260
NMB BANK PLC
(d) Overdraft Stage 1 Stage 2 Stage 3

As at 1 January 2023 4,294 5,968 12,932 23,194
Movements - - - -
Maintained Stage and other movements 3,827 223 12,654 16,704
New Financial assets originated or purchased 3 - - 3
Net profit or loss charge during the period (354) (5,832) 5,479 (707)
impact
Write-offs - - (5,780) (5,780)
As at 31 December 2023 3,940 137 12,631 16,707
As at 1 January 2022 6,549 48 5,815 12,412

Movements
New Financial assets originated or purchased - - 1 1
impact
Write-offs (2) (7) (3,068) (3,077)
As at 31 December 2022 4,294 5,968 12,932 23,194
NMB BANK PLC

2023 2022
(e) Off-balance sheet items TZS’ Millions TZS’ Millions
As at 1 January 276 163
Movements
New financial guarantees 188 140
Matured financial guarantees (53) (27)
Net profit or loss charge during the period 135 113
As at 31 December 411 276
Allowance charged to profit or loss during the year
Secured loans 9.1.5 (a) 19,875 13,568

Unsecured loans 9.1.5 (b) 14,182 10,754
Agribusiness loans 9.1.5 (c) 25,610 7,979
(Profit)/Loss - Overdraft facilities 9.1.5 (d) (707) 13,947
Loss on derecognition of assets 25,390 34,819
Total on-balance sheet charge 84,350 81,067

Off-balance sheet exposures 12 (b) 135 113
As at 31 December 84,485 81,180
9.1.5.2 Changes in gross carrying amount
S
ignificant changes in the gross carrying amount of financial assets that contributed to
changes in the loss allowance were as follows:
The growth of new Salaried Workers Loans and other consumers’ loans originated during
the period, aligned with the Bank’s organic growth objective, increase the gross carrying
amount of the unsecured book by 14% (2022: 21%) while secured book significantly
increased by 72% (2022: increased by 45%), with a corresponding TZS 3.6 billion increase
in loss allowance for unsecured book (2022: TZS 4.1 billion), and an increase of TZS 8.5
billion (2022: decrease of TZS 37.2 billion) for secured book.

NMB BANK PLC
9.1.5.2 Changes in gross carrying amount (continued)

The following table further explains changes in the gross carrying amount and explains their
significance to the changes in the loss allowance for the same portfolio as discussed above.
Total Loans and advances Stage 1 Stage 2 Stage 3

As at 1 January 2023 5,855,242 192,340 195,094 6,242,676
Movements - - - -
Transfer from stage 1 to stage 2 (4,643) 4,643 - -
Transfer from stage 2 to stage 1 30,187 (30,187) - -
Transfer from stage 2 to stage 3 - (797) 797 -
Maintained Stage and other movements 6,238,300 107,057 353,061 6,698,418
New Financial assets originated or purchased 998,601 9,732 1,962 1,010,295
Financial assets that have been de-recognized (5,666,289) (146,020) (115,224) (5,927,533)
Write-offs - - (74,230) (74,230)
As at 31 December 2023 7,514,036 195,704 239,886 7,949,626
As at 1 January 2022 4,525,460 143,911 194,548 4,863,919

Movements - - - -
New Financial assets originated or purchased 2,307,996 28,378 31,618 2,367,992
Write-offs (4,359) (902) (62,663) (67,924)
As at 31 December 2022 5,855,242 192,340 195,094 6,242,676

NMB BANK PLC
(i) Secured term loans Stage 1 Stage 2 Stage 3

As at 1 January 2023 1,096,122 123,175 64,152 1,283,449
Movements - - - -
New Financial assets originated or purchased 69,746 717 - 70,463
Write-offs - - (36,207) (36,207)
As at 31 December 2023 2,010,730 131,265 65,318 2,207,313
As at 1 January 2022 786,133 110,651 91,603 988,387

Movements
New Financial assets originated or purchased 36,022 301 127 36,450
Write-offs (48) (11) (33,153) (33,212)
As at 31 December 2022 1,096,122 123,175 64,152 1,283,449

NMB BANK PLC
(ii) Unsecured term loans Stage 1 Stage 2 Stage 3

As at 1 January 2023 4,059,865 10,555 43,313 4,113,733
Movements - - - -
New Financial assets originated or purchased 857,265 6,531 1,882 865,678
Write-offs - - (20,968) (20,968)
As at 31 December 2023 4,640,873 16,560 48,392 4,705,825
As at 1 January 2022 3,225,084 11,701 35,604 3,272,389
Movements
New Financial assets originated or purchased 938,252 2,268 4,745 945,265
Write-offs (773) (170) (18,344) (19,287)
As at 31 December 2022 4,059,865 10,555 43,313 4,113,733

NMB BANK PLC
(iii) Agribusiness loans Stage 1 Stage 2 Stage 3

As at 1 January 2023 470,027 50,201 58,551 578,779

Movements - - - -
New Financial assets originated or purchased 69,716 2,467 80 72,262
Write-offs - - - -
As at 31 December 2023 574,297 30,962 96,906 702,165
As at 1 January 2022 278,185 9,619 45,289 333,093

Segment Reallocation (180) - - (180)
Movements
New Financial assets originated or purchased 5,845 34 34 5,913
Write-offs (60) (22) (11,169) (11,251)
As at 31 December 2022 470,027 50,201 58,551 578,779

NMB BANK PLC
(iv) Overdraft Stage 1 Stage 2 Stage 3

As at 1 January 2023 229,762 8,443 26,571 264,776

Movements - - - -
New Financial assets originated or purchased 1,874 17 - 1,891
Write-offs - - (17,055) (17,055)
As at 31 December 2023 288,136 16,917 29,270 334,323
As at 1 January 2022 236,058 11,940 22,052 270,050

Movements
Write-offs - - (5,096) (5,096)
As at 31 December 2022 229,762 8,443 26,571 264,776

NMB BANK PLC
9.1.6 Write-off policy
The Bank writes-off financial assets that have been past due for more than 720 days. Write-
off can be done in whole or in part before the 720 days in arrears when it has consumed all
practical recovery efforts and has concluded there is no reasonable expectation of recovering
the remaining amount, this includes (i) ceasing enforcement activity and (ii) where the Bank’s
recovery method is foreclosing on collateral and the value of the collateral is such that there
is no reasonable expectation of recovering in full.
The Bank has written-off of TZS 74 billion in 2023 (2022: TZS 70 billion) while still working on
recovering the written-off amount.
9.1.7 Modification of loans
The following table includes summary information for financial assets with lifetime ECL whose
cash flows were modified during the period as part of the Bank’s restructuring activities and
their respective effect on the Bank’s financial performance:
Loans and advance to customers 2023 2022

Gross amount before modification 91,377 57,431
Net modification gain 965 1,692
The net modification gain above represents the changes in the gross carrying amounts (i.e.
before impairment allowance) of the financial assets from immediately before, to immediately
after, modification. In the majority of cases, this gross gain had been anticipated and already
materially reflected within the ECL allowance.
9.1.8 Amounts due from banks

Balances due from other banks are considered to have low credit risk and classified as
stage 1. The Basel Minimum Risk parameters of Probability of Default (PD) and Loss Given
Default (LGD) rates were used to calculate the impairment charge, which is 5.5 million as of
December 31, 2023 (2022: Nil).
9.1.9 Debt securities, treasury bills and other eligible bills
The Bank holds investments in Treasury Bills and Treasury Bonds issued by the Government.
These investments are considered to have low credit Risk, at the end of reporting period,
these assets were categorized as Stage 1. The Basel Minimum Risk parameters were used
to calculate ECL. Impairment charge as of December 31, 2023, is 114 million (2022: Nil)

NMB BANK PLC
9.1.10 Balances with Bank of Tanzania and other assets

Other assets are categorized as Stage 1 and Stage 3, balances with Bank of Tanzania are
categorized as Stage 1. The simplified model has been used for estimation of ECL. The
impact has been determined to be insignificant.
9.1.11 Repossessed collateral

During the year, the Bank did not obtain assets by taking possession of collateral held as
security. Repossessed properties are usually sold as soon as practicable, with the proceeds
used to reduce the outstanding indebtedness.
9.1.12 Concentration of risks of financial assets with credit risk exposure
(a) Geographical sectors
The following table breaks down the Bank’s main credit exposure at their carrying
amounts, as categorized by geographical region as of 31 December 2023. For this
table, the Bank has allocated exposures to regions based on the country of domicile
of its counterparties.

NMB BANK PLC
9.1.12 Concentration of risks of financial assets with credit risk exposure (continued)
(a) Geographical sectors (continued)
Credit risk exposures relating to on-balance sheet assets are Tanzania Europe America Others Tota
as follows: TZS Millions TZS Millions TZS Millions TZS Millions TZS Millions
31 December 2023
Cash and balances with the Bank of Tanzania 1,327,789 6,885 - 6,260 1,340,934
Placement and balances with other banks 288,263 34,023 - 14,473 336,759
Investment in Government securities
• Amortised cost 2,245,260 - - - 2,245,260
• Fair value through Other Comprehensive Income 28,345 - - - 28,345
Loans and advances to customers 7,706,925 - - - 7,706,925
Other assets (excluding non-financial assets) 103,522 - - - 103,522
As at 31 December 2023 11,700,104 40,908 - 20,733 11,761,745
Credit risk exposures relating to off-balance sheet assets are

as follows:
Guarantees and indemnities (Note 41(a)) 1,024,422 4,170 - - 1,028,592
Undrawn commitments (Note 41(a)) 319,530 - - - 319,530
Acceptances and letters of credit (Note 41(a)) 1,007,275 33,037 - 27,552 1,067,864
As at 31 December 2023 2,351,226 37,207 - 27,552 2,415,986

NMB BANK PLC
(a) Geographical sectors (continued)
Tanzania Europe America Others Tota

Credit risk exposures relating to on-balance sheet assets are as follows:
TZS Millions TZS Millions TZS Millions TZS Millions TZS Millions
31 December 2022
Cash and balances with the Bank of Tanzania 622,350 - - - 622,350
Placement and balances with other banks 139,492 46,056 - 1,393 186,941
• Amortised cost 1,915,254 - - - 1,915,254
• Fair value through Other Comprehensive Income 28,778 28,778
Loans and advances to customers 6,242,676 - - - 6,242,676
Other assets (excluding non-financial assets) 171,467 - - - 171,467
As at 31 December 2022 9,120,017 46,056 - 1,393 9,167,466
Credit risk exposures relating to off-balance sheet assets are as follows:

Guarantees and indemnities (Note 41(a)) 558,225 - - - 558,225
Undrawn commitments (Note 41(a)) 242,993 - - - 242,993
Acceptances and letters of credit (Note 41(a)) 1,151,212 - - - 1,151,212
As at 31 December 2022 1,952,430 - - - 1,952,430

NMB BANK PLC
(b) Industry sectors
The following table breaks down the Bank’s main credit exposure at their carrying amounts, as categorized by the industry sectors of its counterparties.
(Amounts are in TZS’ Millions):
Financial Trading Transport & Whole-
institu- Manu-fac- and com- communi- sale & Agricul- Individu-
31 December 2023 tions turing mercial cation retail ture als Others Total
Cash and balances with the Bank of
Tanzania 791,826 - - - - - - - 791,826
Placement and balances with other
banks 336,759 - - - - - - - 336,759
- Amortised cost 2,245,260 - - - - - - - 2,245,260

- Fair value through Other comprehen-
sive income 28,345 - - - - - - - 28,345
Loans and advances to customers - 412,150 92,065 169,546 767,998 728,446 4,777,537 1,001,884 7,949,626
Other assets (excluding non-financial
assets) 103,522 - - - - - - - 103,522
As at 31 December 2023 3,505,712 412,150 92,065 169,546 767,998 728,446 4,777,537 1,001,884 11,455,338

NMB BANK PLC
(b) Industry sectors
Financial Manu- Trading and Transport and Wholesale Agricul- Individ-

31 December 2023 institutions facturing commercial communication and retail ture uals Others Total
Guarantees and indemnities -
232,768 613,231 15,545 46,202 95,789 - 25,057 1,028,592
(Note 41(a))
Undrawn commitments (Note

- 24,349 127,969 372 32,812 116,666 - 17,362 319,530
41(a))
Acceptances & letters of credit

- 504,596 355,621 47,381 117,118 19,298 - 23,850 1,067,864
(Note 41(a))
As at 31 December 2023 - 761,713 1,096,821 63,298 196,132 231,753 - 66,269 2,415,986

NMB BANK PLC
(b) Industry sectors (continued)
The following table breaks down the Bank’s main credit exposure at their carrying amounts, as categorized by the industry sectors of its
counterparties. (Amounts are in TZS’ Millions):
Trans-
Financial Manu- Trading port and Whole-
institu- factur- and com- commu- sale and Agricul- Individu-
31 December 2022 tions ing mercial nication retail ture als Others Total
Cash and balances with the Bank of
Tanzania 1,076,453 - - - - - - - 1,076,453
Placement and balances with other
banks 186,941 - - - - - - - 186,941
- Amortised cost 1,915,254 - - - - - - - 1,915,254
- Fair value through Other compre-
hensive income 28,778 - - - - - - - 28,778
Loans and advances to customers - 264,208 812,496 123,976 347,812 520,514 3,732,399 441,271 6,242,676
Other assets (excluding non-finan-
cial assets) - - - - - - - 171,467 171,467
As at 31 December 2022 3,207,426 264,208 812,496 123,976 347,812 520,514 3,732,399 612,738 9,621,569
Guarantees and indemnities - (Note
41(a)) 400 46,604 146,854 38,614 321,664 3,835 9 245 558,225
Undrawn commitments (Note 41(a)) - 41,442 103,511 593 34,879 61,564 4 1000 242,993
Acceptances & letters of credit (Note
41(a)) 145,766 119,732 34,498 61,823 771,337 13,752 - 4,304 1,151,212
As at 31 December 2022 146,166 207,778 284,863 101,030 1,127,880 79,151 13 5,549 1,952,430

NMB BANK PLC
9.2 Market risk

The Bank is subject to market risks, signifying the potential variation in the fair value or future cash
flows of a financial instrument due to changes in market prices. Such risks predominantly emanate
from positions in interest rates and currencies, making them susceptible to both general market
dynamics and specific shifts in market rate volatility, including interest rates, credit spreads, and
foreign exchange rates. The Bank categorizes its market risk exposures into trading or non-trading
portfolios.
Our trading portfolios comprise positions derived from market-making activities, where the Bank
engages as a principal with clients or the market. On the other hand, non-trading portfolios are
largely a result of managing the interest rates tied to the Bank’s retail and corporate banking assets
and liabilities.
The Bank’s Treasury Department is the focal point for managing and monitoring risks arising from
both trading and non-trading activities.
Trading portfolios include those positions arising from market-making transactions where the Bank
acts as principal with clients or with the market.
Non-trading portfolios primarily arise from the interest rate management of the Bank’s retail and
corporate banking assets and liabilities.
The Bank’s approach to market risk is strategic, operating within the boundaries of board-approved
tolerances. The Asset-Liability Committee (ALCO) plays a pivotal role in this framework, not only
monitoring these tolerances but also implementing escalation procedures as needed. ALCO
convenes monthly, providing a platform for comprehensive deliberations on the Bank’s Market Risk
profile. These meetings are instrumental, as they encompass the examination of management’s
analytical insights on interest rate impacts on the bank, inclusive of, but not limited to, the outcomes
derived from various modeling techniques.
9.2.1 Foreign exchange risk
The Bank actively manages its exposure to the potential effects of fluctuations in current
foreign currency exchange rates, which can significantly impact its financial position and cash
flows. This risk management is overseen by the ALCO, which establishes strict limits on the
level of exposure to foreign exchange risk. These limits are meticulously set for each currency
and in aggregate terms, covering both overnight and intra-day positions, and are subject to
daily monitoring to ensure ongoing compliance and risk mitigation.
The Bank maintains a conservative stance towards its net open foreign currency positions.
These limits are deliberately kept well below the maximum thresholds permitted by the Central
Bank of Tanzania, reflecting the Bank’s prudent approach to managing currency risk.
The table below summarises the Bank’s exposure to foreign currency exchange rate risk at
31 December 2023 and 31 December 2022. Included in the table are the Bank’s financial
instruments at carrying amounts, categorised by currency.

NMB BANK PLC
9.2. Market risk (continued)
9.2.1 Foreign exchange risk (continued)
Concentrations of currency risk - on - and off - balance sheet financial instruments:
USD EURO GBP Others Total

31 December 2023 Millions Millions Millions Millions Millions
Assets
Cash and balances with Bank
of Tanzania 321,282 6,885 989 5,271 334,427
Placement and balances with
other banks 278,237 34,023 4,019 10,454 326,733
Loans and advances to cus-
tomers 984,565 - - - 984,565
Other assets (excluding non-fi-
nancial assets) 11,060 - 3 - 11,063
Total financial assets 1,595,144 40,908 5,011 15,725 1,656,788
Liabilities
Deposits from customers (843,178) (42,637) (3,283) (5,436) (894,534)
Long term borrowing (743,517) - - - (743,517)
Lease liabilities (2,966) - - - (2,966)
Other liabilities (excluding
non-financial other liabilities) (16,492) (297) - - (16,789)
Total financial liabilities (1,606,153) (42,934) (3,283) (5,436) (1,657,806)

Net on-balance sheet
financial position (11,009) (2,026) 1,728 10,289 (1,018)
Off balance sheet position

Guarantee and indemnities 613,062 4,170 - - 617,232
Undrawn commitments 48,333 - - - 48,333
Acceptance and letters of
credit 987,190 33,037 27,552 - 1,047,778
1,648,585 37,207 27,552 - 1,713,343

NMB BANK PLC
9.2. Market risk (continued)
Concentrations of currency risk - on - and off - balance sheet financial instruments:
USD EURO GBP Others Total

As at 31 December 2022 Millions Millions Millions Millions Millions
Assets
Cash and balances with Bank 334,297 3,066 744 1,260 339,367
of Tanzania
Placement and balances with 40,718 12,920 2,162 1,828 57,628
other banks
Loans and advances to cus- 558,636 - 5 - 558,641
tomers
Other assets (excluding non-fi- 2,425 - - (3) 2,422
nancial assets)
Total financial assets 936,076 15,986 2,911 3,085 958,058
Liabilities
Deposits from customers 669,057 32,512 2,698 - 704,267

Long term borrowing 437,474 - - - 437,474
Lease liabilities 3,558 - - - 3,558
Other liabilities (excluding 5,330 - - 5,330
non-financial other liabilities) -
Total financial liabilities 1,115,419 32,512 2,698 - 1,150,629
Net on-balance sheet (179,343) (16,526) 213 3,085 (192,571)

financial position
Off balance sheet position
Guarantee and indemnities 345,566 6,303 - - 351,869

Undrawn commitments 116,536 - - - 116,536
Acceptance and letters of 1,034,525 62,662 - - 1,097,187
credit
1,496,627 68,965 - - 1,565,592

NMB BANK PLC
9.2 Market risk (continued)
Foreign exchange sensitivity analysis
The Bank conducts a comprehensive analysis to evaluate the impact of foreign exchange
rate fluctuations on its pre-tax profit for the year. This sensitivity analysis is premised on the
assumption that all other variables remain constant. It specifically focuses on how changes in
foreign exchange rates affect the translation of various foreign currency-denominated items.
These items include cash and balances with the Bank of Tanzania, placements and balances
with other banks, as well as loans and deposits from customers and other banks. Additionally,
the analysis encompasses the impact on borrowings, lease liabilities, other assets, and other
liabilities.
The results of this foreign exchange sensitivity analysis are presented in the table below:
% change in 2023 2022
exchange rate TZS’ Millions TZS’ Millions
USD 10% (1,101) 17,934
EURO 10% (202) 1,653
GBP 10% 173 21
The translation impact of placements and balances with other banks in various currencies,
including Kenyan Shillings, Ugandan Shillings, Japanese Yen, Swiss Francs, Canadian
Dollars, Indian Rupees, Rwandese Francs, Australian Dollars, Norwegian Krona, Swedish
Krona, and South African Rand, is assessed to be minimal and not of significant concern.
9.2.2 Interest rate risk
The Board is responsible for establishing market risk limits, ensuring they are appropriately
reviewed at least annually or more frequently in response to prevailing market conditions.
The responsibility for regular reviews and the monitoring of these limits has been delegated
to the Bank’s Asset and Liability Committee (ALCO).
Currently, the Bank refrains from engaging in proprietary trading activities, resulting in minimal
exposure to market risk. The primary risk associated with the Bank’s non-trading portfolio is
the potential loss stemming from fluctuations in the future cash flows or fair values of financial
instruments due to variations in market interest rates.
The Bank recognizes its exposure to the impact of fluctuations in prevailing market interest
rates, affecting both its fair value and cash flow risks. The management of interest rate risk
is primarily conducted through the careful monitoring of the interest rate repricing impact on
the static balances presented in the statement of financial position. This monitoring includes
assessing the implications of a 200-basis point interest rate shock over a 12-month period.
Items sensitive to variable rates would experience immediate effects from such an interest
rate shock. The subsequent table delineates the Bank’s Interest Gap position for the non-
trading portfolio. It is important to note that the Bank does not carry interest rate risk on off-
balance-sheet items. The presentation of the Bank’s assets and liabilities is at their carrying
amount, categorized according to the earliest of contractual repricing or maturity dates.

NMB BANK PLC
9.2.2 Interest rate risk (continued)

Up to1 1-3 3 - 12 1- 5 Over 5 Non-inter-
month months months Years years est bearing Total
TZS’ TZS’ TZS’ TZS’ TZS’ TZS’ TZS’
As at 31 December 2023 Millions Millions Millions Millions Millions Millions Millions
Assets
Cash and balances with Bank of Tanzania - - - - - 1,340,934 1,340,934
- Amortised cost 89,999 198,052 286,868 746,974 923,368 - 2,245,260
- Fair value through Other comprehensive
28,345 - - - - - 28,345
income
Placement and balances with other banks 110,602 - - - - 226,157 336,759
Loans and advances to customers 839,620 416,151 4,905,766 797,700 747,687 - 7,706,925
Equity Investments - - - - - 42,559 42,559
Other assets (excluding non-financial assets) - 97,022 1,000 5,500 - - 103,522
Total financial assets 1,068,566 711,225 5,193,634 1,550,174 1,671,055 1,609,650 11,804,304
Liabilities
Deposits from customers 768,806 872,939 1,217,580 1,117,632 88,058 4,409,663 8,474,678
Deposit from banks 15,008 - - - - - 15,008
Borrowing - 174,922 158,574 1,046,697 - - 1,380,193
Lease liabilities - - - - - 65,193 65,193
Other liabilities (excluding non-financial other
- - - - - 147,606 147,606
liabilities)
Total financial liabilities 783,814 1,047,861 1,376,154 2,164,329 88,058 4,622,462 10,082,678
Total interest gap 284,752 (336,636) 3,817,480 (614,155) 1,582,997
NMB BANK PLC

Up to1 1-3 3 - 12 1- 5 Over 5 Non-inter-
month months months Years years est bearing Total
TZS’ TZS’ TZS’ TZS’ TZS’ TZS’ TZS’
As at 31 December 2022 Millions Millions Millions Millions Millions Millions Millions
Assets
Cash and balances with Bank of Tanzania - - - - - 1,551,341 1,551,341
- Amortised cost 103,730 99,973 360,469 513,777 837,305 - 1,915,254
- Fair value through Other comprehensive
28,778 - - - - 28,778
income
Placement and balances with other banks 133,722 - 53,219 - - - 186,941
Loans and advances to customers 762,085 362,228 4,498,352 378,576 9,997 3,365 6,014,603
Equity Investments - - - - - 42,559 42,559
Other assets (excluding non-financial assets) - - - - - 236,930 236,930
Financial Assets 1,028,315 462,201 4,912,040 892,353 847,302 1,834,194 9,976,405
Liabilities
Deposits from customers 1,628,992 1,425,638 1,367,066 37,355 78,886 3,062,210 7,600,147
Deposit from banks 12,445 - - - - - 12,445
Borrowing - 5,952 289,487 394,840 59,075 - 749,354
Lease liabilities 1,088 102 1,280 20,566 43,221 - 66,257
Other liabilities (excluding non-financial other
- - - - - 115,450 115,450
liabilities)
Total financial liabilities 1,642,525 1,431,692 1,657,833 452,761 181,182 3,177,660 8,543,653
Total interest gap (613,122) (969,389) 3,255,487 460,158 709,341

NMB BANK PLC
Interest rate risk sensitivity
The Bank has conducted a comprehensive analysis to assess the impact of a scenario
of 1% fluctuation in market interest rates. This analysis assumes a uniform movement in
yield curves and the Bank’s financial position remains constant. Under these conditions, the
following are the projected effects on the Bank’s profit or loss, expressed in (TZS) million.
Net Interest-
Weighted Net
Sensitivity Period Bearing Fund- Impact
Average Position
ing
Less than 30 days 2,647 264,617 (261,970) 5,239
30days to 1 Year 137,050 3,798,404 (3,661,354) 73,227
Net Interest-
Weighted Net
Sensitivity Period Bearing Fund- Impact
Average Position
ing
Less than 30 days 2,128 212,782 (210,655) 2,107
30days to 1 Year 127,143 3,492,269 (3,365,126) 33,651
9.2.3 Price risk
Both the Group and the Bank hold are subject to price risk, primarily due to investments in
shares of Tanzania Mortgage Refinance Company (TMRC) and in government securities.
These investments are valued at fair value through other comprehensive income (FVOCI).
To mitigate the risks associated with price volatility in debt securities, the Group employs a
diversification strategy, spreading exposure across its investment portfolio.
Price sensitivity
Under a scenario of increase in the yield rate by 1 basis points, the directors estimate that
the fair values of assets would be TZS 28,392 million (2022: TZS 22,799 million), compared
to the reported fair value of TZS 28,345 million at 31st December 2023 (2022: TZS 28,412
million). Conversely, a decrease of 1 basis point in the yield rate would result in an estimated
fair value of TZS 28,298 million (2022: TZS 22,799 million).
In determining the fair value of the unquoted equity investment in Tanzania Mortgage
Refinance Company (TMRC), the Bank utilized the pricing from the most recent share
transactions of the Company. It is projected that a 10% rise or fall in the share prices would
correspondingly increase or decrease the fair value of these investments by TZS 292 million
(2022: TZS 292 million).

NMB BANK PLC
9.2.4 Interest rate benchmark reform
Post the reform of the interest rate benchmark, the Group successfully mitigated all exposure
to the USD LIBOR (London Interbank Offered Rate) benchmark.
Throughout the financial year, a comprehensive transition was undertaken, shifting the
Group’s benchmarking standard from the USD LIBOR to the Term Secured Overnight
Financing Rate (SOFR), as established by the Chicago Mercantile Exchange (CME).
9.3 Liquidity risk
Liquidity risk refers to the scenario where the Bank may potentially faces challenges in meeting its
immediate financial liabilities as they mature, or encounters difficulties in obtaining funds to replace
those that have been withdrawn. Such a risk can manifest in the inability to return funds to depositors
in a timely manner or to honor commitments in lending agreements.
9.3.1 Liquidity risk management process
The Bank ensures its liquidity is maintained at optimal levels through a comprehensive risk
management process, overseen by the Asset and Liability Committee (ALCO). This process
encompasses:

• Daily Funding Management: This involves continuous monitoring of upcoming cash flow
requirements to ensure the Bank can meet its daily obligations. It includes replenishing
funds as they mature or are borrowed by customers. The Bank actively participates in
money markets to facilitate this process.
• Portfolio of Liquid Assets: The Bank maintains a portfolio of highly liquid and marketable
securities, that can easily be liquidated as protection against any unforeseen interruption
to cash flows;
• Liquidity Ratios: The Bank closely monitors key balance sheet liquidity ratios, including
the Liquid Asset Ratio (LAR), Loan to Deposit Ratio (LDR), and Long-term Funding
Ratio (LTFR), to comply with both internal standards and regulatory requirements.
• Debt Maturity Management: Attention is given to managing the maturity profiles and
concentrations of debts to avoid significant maturity clusters that could strain liquidity.
• Depositor Base Diversification: The Bank strives to diversify its depositor base, reducing
reliance on any single depositor or group, thereby spreading its liquidity risk.
• Liquidity Stress Testing: Regular liquidity stress tests and scenario analyses are
conducted to prepare for potential liquidity challenges.
• Contingency Funding Plan: The Bank maintains a comprehensive and actionable
contingency funding plan, ready to be activated should a severe liquidity event occur

NMB BANK PLC
9.3 Liquidity risk (continued)
The effectiveness of the liquidity management is continuously assessed through the measurement
and projection of cash flows on a daily, weekly, and monthly basis, critical periods for liquidity
monitoring. These projections are informed by a detailed analysis of the contractual maturity dates of
financial liabilities and the anticipated collection dates of financial assets, as outlined in Notes 9.3.3.
9.3.2 Funding approach
The Group adopts a prudent approach to managing liquidity, demonstrating a minimal

tolerance for liquidity risk. This conservative stance is reflected in the maintenance of a
cautious maturity profile, diligently overseen by the Asset and Liability Committee (ALCO)
within the framework of an approved Asset-Liability Management (ALM) policy. The Group’s
strategic funding approach involves aligning the maturity of assets and liabilities, with a
significant portion of long-term assets being financed through long-term funding sources,
thereby minimizing reliance on core call deposit funding.
In its commitment to ensuring robust liquidity, the Bank’s ALCO regularly evaluates the sources
of liquidity. This involves a thorough review aimed at maintaining broad diversification across
various dimensions including currency, geographic location, provider, financial product, and
maturity term.
9.3.3 Non-derivative cash flows
The table provided below presents a detailed analysis of the Bank’s assets and liabilities,
classified according to their maturity groupings. This classification is based on the remaining
duration from the date of the financial position statement to their respective contractual
maturity dates.

NMB BANK PLC
9.3 Liquidity risk (continued)
9.3.4 Assets held for managing liquidity risk

Up to1 1-3 3 - 12 Over 1
As at 31 December 2023 month months months Years Total
TZS’ TZS’ TZS’ TZS’ TZS’
Liabilities Millions Millions Millions Millions Millions
Deposits from customers 1,690,326 1,530,433 2,535,734 2,718,186 8,474,678
Deposits from banks 15,008 - - - 15,008
Long term borrowing* - 174,922 158,574 1,046,697 1,380,193
Lease liabilities - - 4 65,188 65,193
non-financial liabilities) - - - 147,606 147,606
Total liabilities 1,705,334 1,705,355 2,694,312 3,977,677 10,082,678
Assets held for manag-
ing liquidity 1,258,475 198,103 285,985 2,208,736 3,951,299
Liabilities
Deposits from customers 2,728,243 2,387,661 2,289,563 194,680 7,600,147
Deposits from banks 12,445 - - - 12,445

Long term borrowing* - 5,952 289,487 453,915 749,354
Lease liabilities - - 20 68,713 68,733
non-financial liabilities) 48 36 109,991 1,840 111,915
Total liabilities 2,740,736 2,393,649 2,689,061 719,148 8,542,594
Assets held for manag-
ing liquidity 1,290,985 137,039 413,688 1,811,822 3,653,535
9.3.4 Assets held for managing liquidity risk
The Bank strategically holds certain assets to effectively manage and mitigate liquidity risk.
These assets include:
• Cash and balances with the Bank of Tanzania (excluding SMR);

• Investment in government securities; and
• Placements and balances with other banks:
In routine operations, a segment of customer loans that are contractually due within one
year is often extended.

NMB BANK PLC
9.3.4 Assets held for managing liquidity risk (continued)
Furthermore, the Bank is equipped to manage unforeseen net cash outflows by liquidating
securities and tapping into alternate funding avenues, such as asset-backed markets.
9.4 Off-balance sheet items
(a) Undrawn commitments, outstanding letters of credit, guarantee and indemnities
he table provided below summarizes the contractual dates and amounts related to the Bank’s
T
off-balance sheet financial instruments. These instruments include commitments to extend credit
to customers, as well as outstanding letters of credit, guarantees, and indemnities (Note 41).
(b) Financial guarantees and other financial facilities

Included in the following section are the Bank’s financial guarantees, as detailed in Note 41.
These are presented according to their earliest contractual maturity dates
No later 1-5
then 1 year years Total
TZS’ TZS’ TZS’
Millions Millions Millions
Guarantee and indemnities 824,388 204,204 1,028,592
Undrawn commitments 319,530 - 319,530
Acceptance and letter of credit 1,067,864 - 1,067,864
Total 2,211,782 204,204 2,415,986
Guarantee and indemnities 498,593 59,632 558,225
Undrawn commitments 242,993 - 242,993
Acceptance and letter of credit 1,150,525 687 1,151,212
Total 1,892,111 60,319 1,952,430
9.5 Fair value of financial assets and liabilities
9.5.1 Fair value estimation
In compliance with IFRS 13, the Bank is required to categorize its fair value measurements
within a structured hierarchy. This hierarchy is fundamentally based on the nature and
significance of the inputs used in making the measurements.

NMB BANK PLC
9.5 Fair value of financial assets and liabilities (continued)
9.5.1 Fair value estimation (continued)

To align with these requirements, the Bank has established a hierarchy for valuation
techniques that is differentiated by the observability of the inputs. Observable inputs are
those that are based on market data sourced from independent and reliable entities, while
unobservable inputs are derived from the Bank’s own market assessments and assumptions.
This distinction between observable and unobservable inputs forms the basis of the Bank’s
fair value hierarchy as follows:
• L
evel 1 fair value measurements are those derived from quoted prices (unadjusted) in
active markets for identical assets or liabilities.
• L
evel 2 fair value measurements are those derived from inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
• L
evel 3 fair value measurements are those derived from valuation techniques that include
inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
This hierarchy requires the use of observable market data when available. The Bank considers
relevant and observable market prices in its valuations where possible.
There were no transfers between the levels during the year.
i) F
air value of the Group financial assets and financial liabilities that are measured at
fair value on recurring basis
The following table gives information about how the fair value of these financial assets and
liabilities are determined:
Relationship
Valuation
Significant of
technique
Fair value at unobservable unobservable
and key
inputs input to fair
inputs
2023 2022 Hierarchy value
TZS TZS Market
Type
Millions Millions observable N/A N/A
inputs
Investment in
government 28,345 28,778 Level 2 Latest
securities transaction
Market
offers the
Equity observable N/A
2,920 2,920 Level 2 equity
instruments inputs
instrument by
TMRC
ii) Fair value of financial assets and liabilities that are not measured at fair value
The Bank assesses the fair value of all financial assets and liabilities.

NMB BANK PLC
ii) F
air value of financial assets and liabilities that are not measured at fair value
(continued)
For cash and cash equivalents, loans and advances, customer deposits and borrowed
funds, are evaluated by the Bank based on parameters that takes into account various
factors such as prevailing interest rates and the specific creditworthiness of each
customer. The determination of fair value for these assets and liabilities is conducted
using a discounted cash flow method.
Cash and balances with Bank of Tanzania
The carrying amount of cash and balances with Bank of Tanzania is a reasonable
approximation of fair value.
Investment in government securities
Investment in government securities include treasury bonds and treasury bills. The fair
value of government securities held at amortized cost are estimated by discounting
future cash flows using rates currently available for debt on similar terms, credit risk and
remaining maturities, as traded in the primary market by the Bank of Tanzania.
Loans and advances to banks include inter-bank placements and items in the course of
collection. The carrying amount of floating rate placements and overnight advances is a
reasonable approximation of fair value. The estimated fair value of fixed interest-bearing
advances is based on discounted cash flows using prevailing money-market interest
rates for debts with similar credit risk and remaining maturity.
Loans and advances to customers are net of charges for impairment. The estimated fair
value of loans and advances represents the discounted amount of estimated future cash
flows expected to be received. Expected cash flows are discounted at original effective
interest rate to determine fair value.
Deposits from banks and customers
The estimated fair value of deposits with no stated maturity, which includes non-interest-
bearing deposits, is the amount repayable on demand. The estimated fair value of fixed
interest-bearing deposits not quoted in an active market is based on discounted cash
flows using interest rates for new debts with similar remaining maturity.
Borrowings
Significant portion of borrowing is benchmarked to CME SOFR and therefore reprices

at balance sheet date. Management has considered the impact of borrowings with
fixed interest rate as insignificant to the total fair value of borrowings. The fair value of
borrowings therefore approximates its carrying value.
NMB BANK PLC
ii) Fair value of financial assets and liabilities that are not measured at fair value (continued)
Carrying amount Fair value
2023 2022 2023 2022

Hierarchy TZS’ TZS’ TZS’ TZS’
BANK level Millions Millions Millions Millions
Financial assets
Cash and balances
with Bank of Tanzania Level 3 1,340,935 1,551,341 1,333,092 1,551,341
at amortized cost
(Treasury bonds) Level 2 1,868,106 1,580,143 1,781,477 1,581,770
at amortized cost
(Treasury bills) Level 2 377,154 335,111 374,701 336,598
Placement and
balances with other
banks Level 2 336,759 186,941 355,885 186,941
Loans and advances
to customers Level 2 7,706,924 6,014,603 7,706,925 6,014,603
Other assets
(excluding non-
financial assets) * Level 3 103,521 173,196 298,780 173,196
11,733,399 9,841,335 11,850,860 9,844,449
Financial liabilities
Deposits from
customers Level 3 8,474,683 7,594,832 8,451,959 7,594,832
Deposits from banks Level 2 15,008 12,445 15,158 12,445
Subordinated debt Level 3 - - - -
Borrowings Level 3 1,380,193 749,354 1,380,193 749,354

Other liabilities
(Excluding non-
financial other
liabilities)** Level 3 147,606 115,373 155,576 115,373
10,017,490 8,472,004 10,002,886 8,472,004
Cash and balances with Bank of Tanzania has been transferred between the fair value hierarchy
levels from level 2 to level 3.
*Prepayments, inventory, provision for other assets and stationery are excluded from other assets’
balance, as this analysis is for financial instruments only.
**Non-financial liabilities such as provision and statutory liabilities are excluded from other liabilities

NMB BANK PLC
9.6 Capital management
The Bank’s objectives when managing capital, which is a broader concept than the ‘equity’ on the
face of statement of financial positions, are:
• To comply with the capital requirements set by the Bank of Tanzania (BoT);
• To safeguard the Bank’s ability to continue as a going concern so that it can continue to provide
returns for shareholders and benefits for other stakeholders; and
• To maintain a strong capital base to support the development of its business.
Capital adequacy and the use of regulatory capital are monitored daily by the Bank’s management,
employing techniques based on the guidelines developed by the Basel Committee, as implemented
by the Bank of Tanzania (BoT), for supervisory purposes. The required information is filed with the
BoT on a quarterly basis.
The Bank of Tanzania requires each bank or banking group to:
(a) Hold a minimum level of core capital of TZS 15 billion;

(b) Maintain a ratio of core capital to the risk-weighted assets plus risk-weighted off-balance sheet
assets of above the required minimum of 10%; and
(c) Maintain total capital of not less than 12% of risk-weighted assets plus risk-weighted off-balance
sheet items.
(d) Maintain a capital conservation buffer of 2.5% of risk-weighted assets and off-balance sheet
exposures. The capital conservation buffer is made up of items that qualify as Tier 1 capital.
When a bank is holding capital conservation buffer of less than 2.5% of risk-weighted assets and
off-balance sheet exposures but is meeting its minimum capital requirements, that bank:
• Shall not distribute dividends to shareholders or bonuses to senior management and other staff
members until the buffer is restored to at least 2.5%;
• Shall submit a capital restoration plan to the Bank of Tanzania within a period specified by BoT,
indicating how the bank is going to raise capital to meet its minimum requirement including
capital conservation buffer within a specified period of time; and
• In the event that BoT does not approve the capital restoration plan, it may direct the bank to raise
additional capital within a specified time period in order to restore its capital conservation buffer.

NMB BANK PLC
9.6 Capital management (continued)
The Bank’s regulatory capital as managed by its Treasury Department is divided into two tiers:
• ier 1 capital: means permanent shareholders’ equity in the form of issued and fully paid ordinary
T
shares, and perpetual non-cumulative preference shares, capital grants and disclosed reserves
less year to date losses, goodwill organization, pre-operating expenses, prepaid expenses,
deferred charges, leasehold rights and any other intangible assets.
Tier 2 capital: means general provisions which are held against future, presently unidentified
•
losses and are freely available to meet losses which subsequently materialize, subordinated
debts, cumulative redeemable preferred stocks and any other form of capital as may be
determined and announced from time to time by the Bank of Tanzania.
The risk-weighted assets are measured by means of a hierarchy of five risk weights classified
according to the nature of and reflecting an estimate of credit, market and other risks associated
with each asset and counterparty, taking into account any eligible collateral or guarantees. A similar
treatment is adopted for off-balance sheet exposure, with some adjustments to reflect the more
contingent nature of the potential losses.
The table below summarizes the composition of regulatory capital and the ratios of the Bank for the
year ended 31 December 2023 and year ended 31 December 2022. During those two periods, the
Bank complied with all the externally imposed capital requirements to which it is subject.
2023 2022
Note TZS’ Millions TZS’ Millions
Tier 1 capital
Share capital 20,000 20,000
Less: Prepaid expenses 26(b) (31,807) (25,941)
Less: Deferred tax assets 30(a) (118,324) (109,475)
Total qualifying Tier 1 capital (A) 1,931,987 1,548,059
Tier 2 capital
Subordinated debt - -
Fair valuation reserve 1,550 1,086
Total qualifying Tier 2 capital (B) 1,550 1,086
Maximum Tier 2 capital allowed (2% of Risk

weighted assets) – (C) (a) 166,382 132,784
Total regulatory capital (D) = [(A) + Lower of (B) or (C)] 1,933,537 1,549,145

NMB BANK PLC
9.6 Capital management (continued)
2023 2022
Risk-weighted assets
On-balance sheet 5,844,312 4,716,207
Off-balance sheet 1,715,637 1,403,908
Market risk 46,136 14,105
Operational risk (b) 705,050 574,404
Total risk-weighted assets (E) 8,311,135 6,708,624
2023
Required 2022
Bank’s ratio
ratio (%) Bank’s ratio (%)
(%)
Tier 1 capital 12.5 23.25 23.08
Tier 1 + Tier 2 capital 14.5 23.26 23.09
The increase in the total regulatory capital in the 2023 is mainly due to the increase of the current-year
profit despite the increase of the off-balance sheet exposure and operational risk capital charge during the
year.
(a) As per Bank of Tanzania requirement, Tier 2 Capital should not exceed 2% of the total risk weighted
assets and off-balance sheet exposure.
(b) Capital charge for operational risk is calculated using Basic Indicator approach (BIA) prescribed
under Basel II by capping net interest income to 3.5% of interest earning assets.
10. INTEREST INCOME (GROUP AND BANK) 2022

2023
TZS’
TZS’ Millions
Millions
Loans and advances to customers 958,827 775,857
Government securities at amortized cost (Note 24(a)) 205,678 162,815
Corporate bonds at amortized cost (Note 24(a)) 414 19
Government securities at fair value through OCI (Note 24(b)) 2,705 4,674
1,179,592 953,656

NMB BANK PLC
2023 2022
11. INTEREST EXPENSE
(a) GROUP
Deposits from customers
- Time deposits 101,841 78,346
- Current accounts 48,500 32,958
- Saving deposits 12,904 11,843
Deposits due to other banks 3,194 404
Borrowings from financial institutions 63,281 29,171
Debt securities in issue 10,416 9,192
Lease liabilities 2,218 2,106
242,354 164,020
(b) BANK
Deposits from customers
- Time deposits 102,441 78,346
- Current accounts 48,500 32,958
- Saving deposits 12,904 11,843
Deposits due to other banks 3,194 404
Borrowings from financial institutions 63,281 31,911
Debt securities in issue 10,416 6,452
246,077 167,307
12. CREDIT IMPAIRMENT CHARGE /(CREDIT)(GROUP AND BANK)

(a) Loans and advances to customers 84,350 81,067
(b) Others:
Off-balance sheet items 135 113
Placements and balances with other banks 17 -
Government securities 114 -
Other assets (Note 26) (181) -
85 113
84,435 81,180

NMB BANK PLC
13. NET FEES AND COMMISSION INCOME 2023 2022

(GROUP AND BANK) TZS’ Millions TZS’ Millions
Fees and commission income
Credit related fees and commissions 108,387 107,322
Other fees 44,841 36,241
Card fees 33,270 29,915
Agency banking fees 93,211 86,685
MNO collaboration fees 73,280 57,537
ATM fees and card issuing 50,215 46,983
Maintenance fees 28,702 19,982
Teller withdrawal fees 21,453 19,847
Commission - mobile banking 15,478 12,500
Government service fees 469 2,177
Total fee and commission income 469,306 419,189
Fee and commission expense (102,819) (94,260)
Net Fee and commission income 366,487 324,929
14. OTHER INCOME

a) GROUP
Bad debts recovery 27,659 22,545
Miscellaneous income 517 587
Profit on disposal of property and equipment 294 590
Rental income 6 7
Dividend on TMRC equity investments 55 50
28,531 23,779
(b) BANK
Bad debts recovery 27,659 22,545
Miscellaneous income 542 612
Profit on disposal of property and equipment 294 590
Rental income 6 7
Dividend on TMRC equity investments 55 50
28,556 23,804
15. EMPLOYEE BENEFITS EXPENSE (GROUP AND BANK)

Salaries and allowances 143,082 129,727
Other staff cost 22,038 17,211
Other emoluments 111,353 99,910
Pension costs - defined contribution plan 21,450 19,448
297,923 266,296

NMB BANK PLC
2023 2022
16. OTHER OPERATING EXPENSES
(a) GROUP
Administrative expenses 55,304 51,276
Cash trip expenses 7,028 9,890
Depositor's Protection Fund Insurance 10,121 8,691
Operating lease rent 561 507
Utilities 19,177 15,719
Security expenses 12,841 10,422
Marketing and advertising expenses 12,015 12,971
Repairs and maintenance 52,083 45,693
Travelling expenses 20,490 13,564
Management contract expenses 2,142 1,564
Other expenses 5,020 1,261
Auditors' remuneration 742 503
Directors' remuneration:
- Fees 360 104
- Others 1,131 363
Impairment charge of other assets (Note 12(b)) - 2,961
199,015 175,499
(b) BANK
Administrative expenses 55,169 50,697
Cash trip expenses 7,028 9,890
Depositor's Protection Fund Insurance 10,121 8,691
Operating lease rent 561 507
Utilities 19,177 15,719
Security expenses 12,841 10,422
Marketing and advertising expenses 12,015 12,971
Repairs and maintenance 52,083 45,693
Travelling expenses 20,490 13,564
Management contract expenses 2,142 1,564
Other expenses 5,020 1,261
Auditors' remuneration 728 503
Directors' remuneration:
- Fees 360 104
- Others 1,131 363
Impairment charge of other assets (Note 12(b)) - 2,961
198,866 174,910

NMB BANK PLC
2023 2022
17. DEPRECIATION AND AMORTISATION
(a) GROUP
Depreciation of property and equipment (Note 27(a)) 34,935 38,441
Amortization of right-of-use assets (Note 29(a)) 10,663 10,205
Amortization of intangible assets (Note 28) 3,846 4,992
49,444 53,638
(b) BANK
Depreciation of property and equipment (Note 27(b)) 32,904 36,410
Amortization of right of use assets (Note 29(b)) 13,579 13,107
Amortization of intangible assets (Note 28) 3,846 4,992
50,329 54,509
18. CURRENT INCOME TAX

(a) GROUP
Income tax expense for the year is arrived at as follows:
Current tax:
In respect of current year 232,257 198,908
Over provision in prior period 6,384 -
238,641 198,908
Deferred tax:
In respect of current year (Note 30(a)) (4,038) (14,903)
In respect of prior year (Note 30(a)) (5,010) (512)
(9,047) (15,415)
Income tax expense 229,594 183,493

NMB BANK PLC
18. CURRENT INCOME TAX (CONTINUED)
a) GROUP (Continued)
The tax on the Group’s profit differs from the theoretical amount that would arise using the statutory
income tax rate as follows:
2023 2022
Reconciliation of accounting profit to income tax expense:
Profit before income tax 774,801 615,166

Tax calculated at the statutory income tax rate of 30% (2022:
30%) 232,440 184,552
Tax effect of:
Depreciation on non-qualifying assets 272 171
Net under provision of deferred tax and current tax in prior
year (5,010) (542)
Current income tax - Under provision in prior year 6,384 -
Expenses not deductible for tax purposes 5,476 4,306
Non-taxable commission income (9,617) (4,599)
Dividend on equity instrument (16) (15)
Recognition of UJVC deferred tax from previous year (335) (380)
b) BANK
Income tax expense for the year is arrived at as follows:

Current tax:
In respect of current year 231,262 198,211
In respect of prior year 6,384 -
237,646 198,211
Deferred tax:
In respect of current year (Note 30(b)) (4,038) (15,464)
In respect of prior year (Note 30(b)) (5,010) (512)
(9,047) (15,976)

NMB BANK PLC
18. CURRENT INCOME TAX (CONTINUED)
b) Bank (Continued)
The tax on the Bank’s profit differs from the theoretical amount that would arise using the statutory
income tax rate as follows:
2023 2022
Reconciliation of accounting profit to income tax expense:
Profit before income tax 770,367 611,611
Tax calculated at the statutory income tax rate of 30% (2022: 30%) 231,110 183,486
Tax effect of:
Depreciation on non-qualifying assets 272 171
Net under provision of deferred tax and current tax in prior year 5,476 3,704
Current income tax - Under provision in prior year 6,384 -
Expenses not deductible for tax purposes (5,010) (512)
Non-taxable commission income (9,617) (4,599)
Dividend on equity instrument (16) (15)
c) CURRENT TAX ASSETS /(LIABILITIES) – GROUP
2023 2022
At start of the year (1,720) 20,678
Current tax expense (Note 18(a)) (238,641) (198,908)
Tax refund - (11,746)
Tax paid 251,330 188,256
Tax receivable/(payable)* - net 10,969 (1,720)
*Group current tax receivable/(payable) at the reporting date was current tax asset of TZS 10,969
million (2022: 3,882 million) and nil current tax liabilities (2022: TZS 5,602 million).
d) CURRENT TAX ASSETS /(LIABILITIES) – BANK
2023 2022
At start of the year (5,602) 17,634
Current tax expense (Note 18(b)) (237,646) (198,211)
Tax refund - (11,746)
Tax paid 251,031 186,721
Tax receivable/(payable) 7,783 (5,602)

NMB BANK PLC
19. EARNINGS PER SHARE
There being no dilutive or dilutive potential share options, the basic and diluted earnings per share are the
same.
The calculation of the basic earnings per share was based on the net profit attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding during the year, calculated
as follows:
(a) GROUP
2023 2022
Net profit attributable to shareholders (TZS Millions) 544,890 431,531
Weighted average number of shares in issue (Millions) 500 500

Basic and diluted earnings per share (TZS) 1,089.78 863.06
(b) BANK
Net profit attributable to shareholders (TZS Millions) 541,768 429,376

Weighted average number of shares in issue (Millions) 500 500
Basic and diluted earnings per share (TZS) 1,083.54 858.75
20 DIVIDEND PER SHARE
Dividends are not recognised as a liability until they have been ratified at the Annual General Meeting. The
Directors propose payment of a dividend of TZS 361.18 per share, amounting to TZS 180,589 million out
of 2023 profit. In 2023, dividend of TZS 286.25 per share, amounting to TZS 143,125 million was approved
and paid in respect of the year ended 31 December 2022.

NMB BANK PLC
21. CASH AND BALANCES WITH BANK OF TANZANIA (GROUP AND BANK)
2023 2022
Cash in hand 549,108 474,888
- Local currency 439,034 382,228
- Foreign currency 110,074 92,660
Balances with Bank of Tanzania 286,335 615,713
- Foreign currency 224,353 246,707
Statutory Minimum Reserves (SMR)* 505,491 460,740
1,340,934 1,551,341
Current 1,340,934 1,551,341
*The SMR deposit is not available to finance the Bank’s day-to-day operations and hence excluded
from cash and cash equivalents for the purpose of the cash flow statement (Note 38). Cash in hand and
balances with Bank of Tanzania are non-interest bearing.
22. PLACEMENTS AND BALANCES WITH OTHER BANKS (GROUP AND BANK)
2023 2022
Balances with banks abroad 220,936 15,834
Placement with local banks
- Foreign currency - 4,728
Placements with banks abroad 100,520 -
Letter of credit discounting arrangements 5,221 37,066
336,759 186,941
Current 336,759 186,941

NMB BANK PLC
23. LOANS AND ADVANCES TO CUSTOMERS (GROUP AND BANK)

2023 2022
Salaried workers loans (SWL) 3,867,746 3,429,822
Staff loans at fair value*1 257,617 224,453
Prepaid staff benefit *2 42,954 33,565
MSE loans 369,846 326,809
Other consumer loans 609,225 475,055
Large corporate entities 1,957,924 992,471
SME loans 415,606 364,683
Agribusiness loans 428,708 395,818
Gross loans and advances to customers* 7,949,626 6,242,676
Less: Expected Credit Losses (242,701) (228,073)
Net loans and advances to customers 7,706,925 6,014,603
Using prevailing market interest rate for staff loans with a carrying amount of TZS 302,170 million (2022:
*1
TZS 258,018 million), the fair value is estimated to be TZS 257,617 million (2022: TZS 224,453 million).
Prepaid staff benefit is the difference between the gross carrying amount and the fair value of staff loans
*2
issued below market rate. It is deferred and amortized to profit and loss on a straight-line basis over the
tenure of the facility. The unwinding of the benefit is the difference between cumulative interest income
using market rate and staff rate.
*The gross loans and advances to customers consists of outstanding principal, interest receivable and it
is net of interest in suspense amounting to TZS 21,248 million (2022: TZS 23,115 million).
Analysis of loans and advances to customers by maturity
Maturity analysis is based on the remaining periods to contractual maturity from year-end
2023 2022
Maturing:
Within 1 year 2,045,003 1,592,624
Between 1 year and 5 years 2,227,578 2,722,626
Over 5 years 3,434,344 1,927,426
7,706,925 6,242,676

NMB BANK PLC
23. LOANS AND ADVANCES TO CUSTOMERS (GROUP AND BANK) (CONTINUED)

The following table shows the movement in expected credit losses that has been recognized for loans and
advances to customers
2023 2022
At 1 January 228,073 209,986
Increase in expected credit loss recognised in the year (Note 12(a)) 84,350 81,067
Decrease in expected credit loss from derecognition of financial assets in
(69,722) (62,980)
the year
Gross loans and advances to customers* 242,701 228,073
Analysis based on ECL segmentation
Agribusiness Overdraft Secured Unsecured Total

2023
TZS’ Millions TZS’ Millions TZS’ Millions TZS’ Millions TZS’ Millions
Salaried Workers Loans - - 2,335 4,165,982 4,168,317
MSE loans - - 369,846 - 369,846
Other consumer loans - - 72,215 537,010 609,225
Large corporate entities - 435,818 1,520,211 1,895 1,957,924
SME loans - 67,100 346,991 1,515 415,606
Agribusiness loans 371,193 55,134 - 2,381 428,708
Grand Total 371,193 558,052 2,311,598 4,708,783 7,949,626
Agribusiness Overdraft Secured Unsecured Total

2022
TZS’ Millions TZS’ Millions TZS’ Millions TZS’ Millions TZS’ Millions
Salaried Workers Loans - - - 3,687,840 3,687,840
MSE loans - 45 326,223 541 326,809
Other consumer loans - - 49,958 425,097 475,055
Large corporate entities 184,577 199,826 608,068 - 992,471
SME loans 654 62,837 301,138 54 364,683
Agribusiness loans 393,548 2,067 - 203 395,818
Grand Total 578,779 264,775 1,285,387 4,113,735 6,242,676

NMB BANK PLC
24(a) INVESTMENT SECURITIES AT AMORTISED COST (GROUP AND BANK)
2023 2022
Treasury bills 377,154 335,111
Treasury bonds 1,861,520 1,576,624
Corporate bonds 6,586 3,519
2,245,260 1,915,254
Current 573,000 452,574
Non-current 1,672,260 1,462,680
2,245,260 1,915,254
Treasury bills and bonds are debt securities issued by the Government of the United Republic
of Tanzania. In the current year, the effective interest rate stood at 9.2% (2022: 8.6%). As at 31
December 2023, there were no treasury bills which were pledged as collateral. However, treasury
bonds with a face value of TZS 158,655 million (2022: TZS 67,677 million) were pledged as security
for borrowings from Bank of Tanzania under the Agribusiness special loan program. Corporate bonds
include Sukuk bonds which are sharia-compliant bonds which are measured at amortized cost.
2023 2022
The movement in investment securities is summarized as follows:
At 1 January 1,915,254 1,683,950
Interest income (Note 10) 206,092 162,816
Additions 932,548 721,384
Interest received (203,103) (147,162)
Proceeds from disposal (37,999) -
Matured securities (569,279) (505,734)
Realized gain on disposal credited to profit or loss 1,747 -
At 31 December 2,245,260 1,915,254

NMB BANK PLC
24(b) INVESTMENT SECURITIES AT FVOCI (GROUP AND BANK)

The Group has invested in various treasury bonds that are designated at fair value through other
comprehensive income. The movement in these securities is as follows:
2023 2022
At 1 January 28,778 55,330
Interest income (Note 10) 2,705 4,674
Realized gain on fair valuation credited to profit or loss 5,780 5,353
Unrealized fair valuation gain/(loss) to OCI (Note 37 (iv)) 663 821
Additions 568,500 133,443
Interest received (8,990) (9,954)
Proceeds from disposal (569,090) (160,889)
At 31 December 28,345 28,778
Non-current 28,345 28,778
25. EQUITY INVESTMENTS
(a) GROUP
Investment at FVOCI 2023 2022

TZS’ % TZS’ %
Company name Millions share Millions share
Tanzania Mortgage Refinance Company Limited (TMRC) 2,920 7.81 2,920 7.81
TMRC is a private company and there is no quoted market price available for the shares. On
adoption of IFRS 9 the investment was re-measured at fair value through other comprehensive
income. Fair value was determined by observing a recent transaction in the market. As at 31
December 2023, the Bank had 1,800,000 shares (2022: 1,800,000) in TMRC. The dividend that
was declared during the year amounted to TZS 55 million (2022: TZS 50 million).
(b) BANK
The Bank has equity investments in TMRC, and a subsidiary named Upanga Joint Venture
Company Limited (UJVC).
(l) Investment in a subsidiary
2023 % 2022 %
Company name TZS’ Share- TZS’ Share-
Millions holding Millions holding
Upanga Joint Venture Company Limited 39,639 88 39,639 88

NMB BANK PLC
25. EQUITY INVESTMENTS (CONTINUED)
b) Bank (Continued)
(i) Investment in a subsidiary (Continued)
There are no contingent liabilities relating to the Bank’s interest in the subsidiary.
There are no restrictions to the Bank in gaining access or use of assets of the subsidiary and settling
liabilities of the Group.
The subsidiary (UJCV) listed above has share capital consisting solely of ordinary shares. The
country of incorporation; the United Republic of Tanzania is also their principal place of business.
There were no significant judgements and assumptions made in determining the Bank’s interest in
the subsidiary.
Set out below is the summarized financial information of Upanga Joint Venture Company Limited
(UJVC).
2023 2022
Summarized statement of financial position
Current
Assets 15,305 10,781
Liabilities (1,658) (2,040)
Total net current assets 13,647 8,741
Non-current
Assets 27,790 29,821
Total non-current net assets 27,790 29,821
Total net assets 41,437 38,562
Summarized statement of comprehensive income
Revenue 4,922 4,921

Cost of sales (118) (117)
Finance costs 600 -
Administrative expenses (2,087) (2,517)
Tax charge (995) (1,258)
Profit after tax 2,322 1,029
Allocated to non- controlling interest 318 141

NMB BANK PLC
25. EQUITY INVESTMENTS (CONTINUED)
b) Bank (Continued)
(i) Investment in a subsidiary (Continued)

2023 2022
Summarized cash flows
Net cash generated from operations 3,753 3,553
Net cash used in investing activities (9,000) -
Net cash used in financing activities - -
Net decrease in cash and cash equivalents (5,247) 3,553
Cash and cash equivalents at start of the year 5,316 1,375
Cash and cash equivalents at end of the year 69 4,928
(ii) Investment at fair value through other comprehensive income
2023 % 2022 %
Company name TZS’ Share- TZS’ Share-
Millions holding Millions holding
Tanzania Mortgage Refinance Company Ltd 2,920 7.81 2,920 7.81
26. OTHER ASSETS
(a) GROUP
2023 2022
Service fees receivable 6,377 5,577
Prepayments 31,886 26,019
Other receivables 80,700 107,738
Staff imprests 111 103
Stationery Stock 1,859 1,262
Bank card inventory 6,208 2,988
Balances due to related parties 1,534 1,534
Cheques and items for clearance (1,432) 34,392
Balances with Mobile Network Operators 18,593 23,852
Less: Expected Credit Losses (135) (2,597)
145,701 200,868
Current 134,471 200,260
Non-current 11,230 608
145,701 200,868

NMB BANK PLC
26. OTHER ASSETS (CONTINUED)
(a) GROUP (Continued)

2023 2022
The movement in credit/(charges) of other assets is as follows:
At start of the year (2,597) (2,240)
Write off 2,281 -
Credit/(charge) for the year (Note 12(b)) 181 (357)
At end of year (135) (2,597)
(b) BANK 2023 2022

Service fees receivable 6,377 5,577
Prepayments 31,807 25,941
Other receivables 78,339 106,009
Staff imprest 111 103
Stationery Stock 1,859 1,262
Bank card Inventory 6,207 2,988
Balances due to related parties 1,534 1,534
Cheques and items for clearance (1,432) 34,392
Balances with Mobile Network Operators 18,593 23,852
Less: Credit impairment charge of other receivables (135) (2,597)
143,260 199,061
Current 132,030 198,453
Non-current 11,230 608
At end of the year 143,260 199,061
The movement in expected credit losses of other receivables is as follows:

2023 2022
At start of the year
Write off (2,597) (2,240)
Credit impairment Release/(Charge) for the year (Note 12(b)) 2,281 -
At end of the year 181 (357)
(135) (2,597)
Other assets have not been pledged as security for liabilities.

NMB BANK PLC
27. PROPERTY AND EQUIPMENT
(a) GROUP
Computers,
Leasehold Motor furniture and Capital work in
Own building improvement vehicles equipment progress* Total
TZS’ TZS’ TZS’ TZS’ TZS’ TZS’
Year ended 31 December 2023 Millions Millions Millions Millions Millions Millions
COST
At 1 January 2023 134,139 102,161 21,392 257,815 4,107 519,614
Additions 71 357 4,627 18,055 10,524 33,634
Transfers from WIP 2,600 5,914 76 1,100 (9,722) (32)
Transfer from prepayments - - 2,035 5,492 (88) 7,439
Disposal - (199) (272) (27,629) - (28,100)
At 31 December 2023 136,810 108,233 27,858 254,833 4,821 532,555
DEPRECIATION
At 1 January 2023 52,893 60,272 18,596 212,716 - 344,477
Charge for the year 6,204 7,785 1,538 19,408 - 34,935
Disposal - (162) (104) (27,437) - (27,703)
At 31 December 2023 59,097 67,895 20,030 204,687 - 351,709
NET BOOK VALUE
At 31 December 2023 77,713 40,338 7,828 50,146 4,821 180,846
*The capital work in progress relates to the ongoing projects of branch renovations, network equipment and ongoing security system projects. No property
and equipment of the Group and Bank has been pledged as security for liabilities.

NMB BANK PLC
27. PROPERTY AND EQUIPMENT (CONTINUED)
(a) GROUP (CONTINUED) Computers,

COST
At 1 January 2022 133,270 100,475 21,638 243,245 1,937 500,565
Additions 233 309 329 6,373 6,694 13,938
Transfers from WIP 636 1,377 - 2,511 (4,524) -
Transfer from prepayments - - 755 5,997 - 6,752
Disposal - - (1,330) (311) - (1,641)
At 31 December 2022 134,139 102,161 21,392 257,815 4,107 519,614
DEPRECIATION
At 1 January 2022 46,783 52,453 19,017 189,422 - 307,675
Charge for the year 6,110 7,819 908 23,604 - 38,441
Disposal - - (1,329) (310) - (1,639)
At 31 December 2022 52,893 60,272 18,596 212,716 - 344,477
NET BOOK VALUE
At 31 December 2022 81,246 41,889 2,796 45,099 4,107 175,137
*The capital work in progress relates to the ongoing projects of branch remodelling. No property and equipment of the Group and Bank has been pledged
as security for liabilities.

NMB BANK PLC
(b) BANK Computers,

COST
At 1 January 2023 91,119 102,161 21,392 257,815 4,107 476,594
Additions 71 357 4,627 18,056 10,524 33,635
Transfers from WIP 2,600 5,914 76 1,100 (9,722) (32)
Transfer from prepayments - - 2,035 5,491 (88) 7,438
Disposal - (199) (272) (27,629) - (28,100)
At 31 December 2023 93,790 108,233 27,858 254,833 4,821 489,535
DEPRECIATION
At 1 January 2023 39,694 60,272 18,596 212,716 - 331,278
Charge for the year 4,173 7,785 1,538 19,408 - 32,904
Disposal - (162) (104) (27,437) - (27,703)
At 31 December 2023 43,867 67,895 20,030 204,687 - 336,479
NET BOOK VALUE
At 31 December 2023 49,923 40,338 7,828 50,146 4,821 153,056
*The capital work in progress relates to the ongoing projects of branch renovations, network equipment and ongoing security system projects. No property
and equipment of the Group and Bank has been pledged as security for liabilities.

NMB BANK PLC
(b) BANK (CONTINUED) Computers,

At 1 January 2022 90,250 100,475 21,638 243,245 1,937 457,545
Additions 233 309 329 6,373 6,694 13,938
Transfers from WIP 636 1,377 - 2,511 (4,524) -
Transfer from prepayments - - 755 5,997 - 6,752
Disposal - - (1,330) (311) - (1,641)
At 31 December 2022 91,119 102,161 21,392 257,815 4,107 476,594
DEPRECIATION
At 1 January 2022 35,615 52,453 19,017 189,422 - 296,507

Charge for the year 4,079 7,819 908 23,604 - 36,410
Disposal - - (310) - (1,639)
At 31 December 2022 39,694 60,272 18,596 212,716 - 331,278
NET BOOK VALUE
At 31 December 2022 51,425 41,889 2,796 45,099 4,107 145,316
*The capital work in progress relates to the ongoing projects of branch re-modelling. No property and equipment of the Group and Bank has been pledged
as security for liabilities.

NMB BANK PLC
28. INTANGIBLE ASSETS (GROUP AND BANK)

Computer Work in
Software progress Total
2023 Millions Millions Millions
Cost:
At 1 January 80,553 15,340 95,893
Additions 2,179 20,686 22,865
Transfers 19,051 (19,013) 38
At 31 December 101,783 17,013 118,796
Amortization
At 1 January 77,603 - 77,603
Charge for the year 3,846 - 3,846
At 31 December 81,449 - 81,449
Net book value 20,334 17,013 37,347
2022
Cost:
At 1 January 79,740 6,759 86,499
Additions 847 8,547 9,394
Transfers (34) 34 -
At 31 December 80,553 15,340 95,893
Amortization
At 1 January 72,611 - 72,611
Charge for the year 4,992 - 4,992
At 31 December 77,603 - 77,603
Net book value 2,950 15,340 18,290
The software work in progress relates to costs towards development of new agency banking system,
internet banking, Mkononi revamp, Micro lending and other small systems

NMB BANK PLC
29. LEASES
2023 2022
(a) RIGHT TO USE ASSETS GROUP
At 1 January 27,063 26,754
Additions 939 10,514
Modification 7,893 -
Amortisation charge (10,663) (10,205)
At 31 December 25,232 27,063
(b) RIGHT TO USE ASSETS BANK

At 1 January 65,072 65,177
Additions 939 10,508
Modification - 192
Lease remeasurement 7,893 2,301
Amortisation charge (13,579) (13,106)
At 31 December 60,325 65,072
(c) LEASE LIABILITIES GROUP

At 1 January 30,586 27,261
Additions 939 7,145
Modification - 192
Interest expense 2,218 2,106
Revaluation losses 152 118
Payment during the year (13,228) (8,532)
At 31 December 28,844 30,586
Current 9,133 4,535

28,844 30,586
(d) LEASE LIABILITIES BANK

At 1 January 68,733 67,142
Additions 939 7,046
Modification - 192
Revaluation losses 152 118
Payment during the year (18,149) (13,454)
At 31 December 65,193 68,733
Current 12,057 9,612

65,193 68,733

NMB BANK PLC
29. LEASES (CONTINUED)

2023 2022
Amounts recognized in profit and loss
(e) GROUP
Amortisation of right-of-use assets - Note 17 (a) 10,663 10,204
Finance cost – included as interest expense - Note 11(a) 2,218 2,106
Expense relating to short-term leases - Note 16 (a) 561 507
Gain on modification – Note 29(c), Note 29(a) - 192
Foreign exchange gain on leases liability – Note 29 (c) 152 118
13,594 13,127
(f) BANK
Amortisation of right-of-use assets - Note 17 (b) 13,579 13,107
Finance cost – included as interest expense - Note 11(b) 5,341 5,393
Expense relating to short-term leases - Note 16 (b) 561 507
Gain on modification – Note 29(b), Note 29(d) - 192
Foreign exchange gain on leases liability – Note 29 (d) 152 118
19,633 19,317
All leases relate to properties used as office, branch or ATM outlets. Total cash out flow for leases in 2023
for Group and Bank amounted to TZS 13,228 million (2022: TZS 8,532 million) and TZS 18,149 million
(2022: TZS 13,454 million) respectively. During the year there was an addition of TZS 939 million for the
Group and Bank respectively.
30. DEFERRED TAX
(a) DEFERRED INCOME TAX ASSETS (GROUP AND BANK)
Deferred income tax is calculated on all temporary differences under the liability method using a
principal tax rate of 30%. The movement on the deferred income tax account is as follows:
2023 2022
At start of year 109,475 93,799
Credit to profit or loss:
In respect to current year (Note 18(b)) 4,038 15,463
In respect of prior year: (Under)/Over provision (Note 18(b)) 5,010 512
Debit to OCI:
In respect of current year (199) (299)
At the end of year 118,324 109,475
Deferred income tax asset and deferred income tax credit to the profit or loss are attributed to the
following items:

NMB BANK PLC
30. DEFERRED TAX (CONTINUED)
(a) DEFERRED INCOME TAX ASSETS (GROUP AND BANK)
(Charged)/credited to
Year ended 31 December 2023
profit or loss in respect of
Current Charged 31
1 January year Prior years to OCI December
Deferred income tax asset Millions Millions Millions Millions Millions
Impact to profit and loss
Property and equipment 14,137 (3,424) - - 10,713
Provisions for loan impairment 68,381 9,481 - - 77,862
Other provisions 22,484 (2,019) 5,010 - 25,475
Other temporary differences 4,938 - - - 4,938
Impact to reserve
Fair valuation gain – equity (354) - - - (354)
Fair valuation gain – debt (111) - - (199) (310)
109,475 4,038 5,010 (199) 118,324
(Charged)/credited to
profit or loss in respect of
Current Charged 31
1 January year Prior years to OCI December
Deferred income tax asset Millions Millions Millions Millions Millions
Impact to profit and loss
Property and equipment 12,812 1,325 - - 14,137
Provisions for loan impairment 62,992 5,389 - - 68,381
Other provisions 17,849 4,635 - - 22,484
Other temporary differences 312 4,114 512 - 4,938
Impact to reserve
Fair valuation gain – equity (354) - - - (354)
Fair valuation gain – debt 188 - - (299) (111)
93,799 15,463 512 (299) 109,475

NMB BANK PLC
30. DEFERRED TAX (CONTINUED)
(b) DEFERRED TAX LIABILITY (GROUP)
Deferred income tax is calculated on all temporary differences under the liability method using a
principal tax rate of 30%. The movement on the deferred income tax account is as follows:
(Charged) /
As 1 credited to At 31
January profit or loss December
Year ended 31 December 2023 1,418 (561) 857
Investment property
Total 1,418 (561) 857
Investment property 858 560 1,418
Total 858 560 1,418
Deferred income tax liability and deferred income tax charge/credit to the profit or loss are attributed
to the following items:
2023 2022
TZS’ TZS’
Millions |Millions
Investment property 857 1,418
Deferred tax liability recognized 857 1,418
31 DEPOSITS FROM CUSTOMERS
(a) GROUP
Deposits due to customers are composed of the following;
Current accounts 3,257,509 2,865,581

Personal accounts 3,921,712 3,539,151
Time deposit accounts 1,286,387 1,190,100
8,465,608 7,594,832
Current 5,756,965 5,124,764

Non-current 2,708,643 2,470,068
8,465,608 7,594,832

NMB BANK PLC
31. DEPOSITS FROM CUSTOMERS (CONTINUED)

2023 2022
(b) BANK
Current accounts 3,266,549 2,870,896
Personal accounts 3,921,712 3,539,151
Time deposit accounts 1,286,417 1,190,100
8,474,678 7,600,147
Current 5,766,035 5,130,081
Non-current 2,708,643 2,470,066
8,474,678 7,600,147
32. DEPOSITS DUE TO OTHER BANKS (GROUP AND BANK)
Deposits from other banks 15,008 12,445

Current 15,008 12,445

NMB BANK PLC
33. OTHER LIABILITIES 2023 2022

TZS’ TZS’
Millions Millions
(a) GROUP
Accrued expenses 15,666 14,118
Bonus payable 18,242 15,536
Deferred processing fees 59,273 49,902
Bills payable 1,983 2,178
Statutory liabilities 36,296 32,539
Provisions for TRA assessments 13,693 9,021
Insurance premium payable 11,616 7,804
Commission payable to NMB agents 4,902 4,608
Cheques and items for clearance 7,381 5,665
Provisions 45 294
Commission received in advance; LCs and Guarantees 1,715 1,765
Sundry liabilities 22,821 4,500
Expected credit losses for off-balance sheet items (Note 9.1.5 e) 411 276
Total 194,044 148,206
Current 49,580 32,491
Non-current 144,464 115,715
194,044 148,206
(b) BANK
Accrued expenses 15,666 14,118
Bonus payable 18,242 15,536
Deferred processing fees 59,273 49,902
Bills payable 1,983 2,178
Statutory liabilities 36,296 32,539
Provisions for TRA assessments 13,693 9,021
Insurance premium payable 11,616 7,804
Commission payable to NMB agents 4,902 4,608
Cheques and items for clearance 7,380 5,665
Provisions 45 294
Commission received in advance; LCs and Guarantees 1,715 1,765
Sundry liabilities 28,484 10,063
Expected credit losses for off-balance sheet items (Note 9.1.5 e) 411 276
Total 199,706 153,769
Current 150,126 112,734
199,706 153,769

NMB BANK PLC
34. PROVISIONS (GROUP AND BANK)

2023 2022
Provision for losses from legal cases 2,431 2,079
Movement in provision
At the start of year 2,079 1,309
Charged during the year 352 770
At end of year 2,431 2,079
The amounts represent provision for certain legal claims brought against the Bank by third parties in the
course of business. In the directors’ opinion, after taking appropriate legal advice, the outcome of these
legal claims will not give rise to any significant loss beyond the amounts provided as at 31 December
2023.
35. BORROWINGS (GROUP AND BANK)

2023 2022
Borrowings:
EIB Loan (i) 32,498 524
FMO Loan (ii) 314,125 295,375
Debt securities in issue (iii) 470,659 74,269
TMRC (iv) 16,700 11,700
IFC (v) 374,180 303,659
BOT (vi) 157,875 57,875
Accrued interest 14,156 5,952
1,380,193 749,354
Current 333,496 295,440

Non-current 1,046,697 453,914
1,380,193 749,354
As at 31 December 2023, the Group had no borrowing at default and was in compliance with all covenants.
(i) European Investment Bank (EIB) loan
As at 31 December 2023, the Bank had outstanding balance of TZS 33 billion (2022: TZS 525
million). The loan is payable semi- annually for seven years in equal installments starting in April
2025 at an effective rate of 14.19% (2022:9.31%)
The loan is part of EUR 100 million Gender and Blue Economy financing that can be drawn down in
either EUR, USD, or TZS. As of 31 December 2023, the remaining portion of the loan amount was
yet to be drawn.

NMB BANK PLC
35 BORROWINGS (GROUP AND BANK) (CONTINUED)
(ii) Financierings-Maatschappij voor Ontwikkelingslanden N.V (FMO) loan
As at 31 December 2023, the Bank had unsecured loan of USD 125 million repayable semi-annually
within six years and carries a floating rate based on six months Term SOFR plus a margin of 2.85%.
The first installment of this loan is due for repayment in June 2024 while the last installment is due
for repayment in December 2028. The outstanding balance as at 31 December 2023 was USD 125
million equivalent to TZS 314,375 million (2022: USD 125 million equivalent to TZS 314,375 million
equivalent to TZS 295,600 million)
(iii) Debt securities in issue
Jamii Bond
On 25 September 2023 the Bank issued the first tranche of NMB Multicurrency Medium Term Note
(MTN) Programme worth Tanzanian Shillings One Trillion (TZS 1,000,000,000,000) dubbed JAMII
Bond. The Bank issued two series of notes denominated in TZS and USD;
• TZS: The Bank issued a TZS 75 billion 3-year bond targeted towards the retail and institutional
investor segment; offering a gross coupon rate of 9.5% and issued at par. The coupon on the bond
is paid quarterly. The offer period closed on 27 October 2023 with market demand exceeding
expectations. The bond subscription rate was 284% with the Bank receiving applications from
investors amounting to TZS 212.94 billion;
• USD: The Bank issued a USD 10 million 3-year bond targeted towards the off shore institutional
investor segment; offering a gross coupon rate of 6 Month TERM SOFR +2.50% and issued at
par. The coupon on the bond is semi-annually. The offer period closed on 8 December 2023 with
market demand exceeding expectations. The bond subscription rate was 730% with the Bank
receiving applications from investors amounting to USD 73 million;
• The bond is unsecured and the two notes series are tradable on the Dar es Salaam Stock
Exchange (DSE);
• Jamii Bond is a Sustainability Bond issued under the Bank Sustainable Financing Framework
that is in alignment with International Capital Markets Association (ICMA) and Multilateral
Development Bank (MDB) principles. The framework secured Second Party Opinion (SPO) from
Sustainalytics;
• Use of Proceeds: The Bank intends to allocate an amount of funding equivalent to the net
proceeds of this tranche of Notes to finance new eligible loans/assets and/or refinance existing
eligible loans/assets, in whole or in part, that meet the eligibility criteria detailed in the green and
social categories as defined in the NMB Sustainable Finance Framework.

NMB BANK PLC
35. BORROWINGS (GROUP AND BANK) (CONTINUED)
(iii) Debt securities in issue (Continued)
Jasiri Bond (Sustainable Bond)
Sustainable Bond
On 7 February 2022, the Bank issued the fourth and final tranche of the 2016 MTN program
dubbed Jasiri Bond. The Bank issued a TZS 25 billion 3-year bond targeted towards the retail and
institutional investor segment; offering a gross coupon rate of 8.5% and issued at par. The coupon on
the bond is paid quarterly. The offer period closed on 21 March 2022 with market demand exceeding
expectations. The bond was oversubscribed by 197% with the Bank receiving applications from
investors amounting to TZS 74.3 billion.
Jasiri Bond is the Bank first Gender Bond in the whole of Sub-Saharan Africa (SSA) whose framework
aligns with Social Bond Principles administered by the International Capital Market Association. The
debut issuance under the bank Social Bond Framework focuses exclusively on gender equality and
economic empowerment of women (SDG-5 specifically) by channelling its proceeds to women-owned
or led businesses and those businesses whose products and services directly benefit a woman. The
Bond will also have impact on other broad-based SDGs impacted through financing of economic
activities under SMEs.
The bond is unsecured and is tradable on the Dar es Salaam Stock Exchange (DSE).
As at 31 December 2023, the NMB 2016 MTN program was fully exhausted after the issuance of
fourth tranche.
The issuance of the bonds is part of the Bank’s strategy to diversify its funding sources.
(iv) Tanzania Mortgage Refinance Company Limited
As at 31 December 2023 the balance was TZS 16.7 billion (2022: TZS 11.7 billion). The balance
was made up of three tranches which were taken to finance the portfolio of mortgage loans and all
tranches were renewable.
At the end of 2017, the Bank had borrowed from Tanzania Mortgage Refinance Company Limited
(TMRC) a renewable loan of TZS 1.7 billion maturing in 48 months and carrying a fixed rate of 11.5%
p.a. The loan is secured by specific debenture over the portfolio of mortgage loans covering at least
125% of the loan amount. The loan was renewable in 2020 at a fixed price of 7.5%.
In 2018, the Bank secured an additional TZS 5 billion loan with a 3-year tenor at a fixed interest rate
of 11.5%. The loan is secured by a portfolio of treasury bonds with a coverage ratio of at least 105.3%
and minimum remaining tenor of 3 years from the date of disbursement. The loan was renewable in
2021 at a fixed price of 7.5%.
In 2019 the Bank secured additional TZS 5 billion loan with a 3-year tenor at a fixed interest rate of
9%. The loan is secured by a portfolio of treasury bonds with a coverage ratio of at least 105.3% The
loan was renewable in 2023 at a fixed price of 7.5%.

NMB BANK PLC
35. BORROWINGS (GROUP AND BANK) (CONTINUED)
(v) International Finance Corporation (IFC)
In 2020, the Bank obtained an unsecured loan of TZS 50 billion repayable semi-annually within five
to six years and carries a fixed rate of 10.50%. The outstanding balance as at 31 December 2023
was TZS 21,428 million (2022: TZS 35,714 million).
During the year 2022, the Bank converted the subordinate loan of TZS 68.19 billion to a senior loan
which carried a reduced interest rate. As at 31 December 2023 the balance was TZS 51,142 million
(2022: TZS 68,190 million). The effective interest rate was 11.93%. The loans were taken for better
Assets Liability management. The loan is unsecured.
During the year 2023, the Bank obtained an unsecured loan of USD 100 million being a COVID- 19
Working Capital Solution Facility. The loan is repayable in 2 years as a bullet and was drawn down
in both USD and TZS. The USD portion is based on six months Term SOFR plus a margin of 1.95%
while the TZS portion carries a fixed interest rate of 13.70%. As at 31 December 2023, the Bank had
outstanding amounts of USD 70 million and TZS 62,875 million of this loan
Moreover, during the year 2023 the Bank rolled over USD 20 million of the IFC GWFP facility for 1
year. The loan has a bullet maturity and carries an interest rate of 6 months term SORF plus a margin
of 1.50%
(vi) Bank of Tanzania (BOT)
In September 2022, the Bank borrowed from BOT an amount of TZS 57.9 billion repayable in 3
months carrying a fixed rate with an option to renew. Furthermore in 2023, the Bank borrowed from
BOT two more loans with amounts of TZS 70 billion and TZS 30 billion repayable in 3 months with
an option for renewal. The effective interest rate for all these loans is 3%. The loans were taken for
the purpose of promoting credit to private sector particularly small-scale farmers. These loans are
secured by treasury bonds.
Movement of borrowings during the year was as follows:

2023 2022
At 1 January 749,354 423,190
Loans received 785,238 427,518
Converted amount from subordinated loan - 68,190
Interest paid (64,317) (31,031)
Principal payment (190,353) (174,141)
Foreign exchange gain/(loss) 26,574 4,073
At 31 December 1,380,193 749,354

NMB BANK PLC
36. NET DEBT ANALYSIS Group Bank

2023 2022 2023 2022
TZS’ TZS’ TZS’ TZS’
Millions Millions Millions Millions
Cash and cash equivalents 1,172,202 1,277,542 1,172,202 1,277,542
Borrowings repayable within one year (333,496) (289,487) (333,496) (289,487)
Borrowings repayable after one year (1,046,697) (459,867) (1,046,697) (459,867)
Lease liabilities due after 1 year (19,711) (26,051) (53,136) (59,121)
Lease liabilities due within 1 year (9,133) (4,535) (12,057) (9,612)
Net debt (236,835) 497,602 (273,184) 459,455
Cash and cash equivalents 1,172,202 1,277,542 1,172,202 1,277,542

Gross debt – fixed interest rate (701,869) (280,458) (701,869) (318,605)
Gross debt – variable interest rate (743,517) (499,482) (743,517) (499,482)
Net debt (273,184) 497,602 (273,184) 459,455
The movement of the individual components is available in Note 29, Note 35 and the statement of cash
flows.
2023 2022
37. CAPITAL AND RESERVES TZS’ TZS’
Millions Millions
(i) Share capital
Authorized
625,000,000 ordinary shares of TZS 40 each 25,000 25,000
Called up and fully paid
500,000,000 ordinary shares of TZS 40 each 20,000 20,000
(ii) Retained earnings
Retained earnings consist of undistributed profits from previous years.
(iii) Fair valuation reserve
The reserve is made up of fair valuation of financial assets and liabilities.
This reserve is not available for distribution to shareholders.

NMB BANK PLC
37. CAPITAL AND RESERVES (CONTINUED)

2023 2022
TZS’ TZS’
Movement in fair valuation reserve is as follows: Millions Millions
At 1 January 1,086 564
Fair valuation gain (Note 24(b)) 663 790
Deferred tax on fair valuation gain (Note 30(a)) (199) (268)
464 522
At 31 December 1,550 1,086
There was no reclassification adjustment made in respect to components of other comprehensive income.
38. CASH AND CASH EQUIVALENTS (GROUP AND BANK) 2023 2022
TZS’ TZS’
Millions Millions
Cash and balances with Bank of Tanzania (Note 21) 1,340,934 1,551,341
Less: Statutory Minimum Reserves (Note 21) (505,491) (460,740)
Placement and balances with other banks (Note 22) 336,759 186,941
1,172,202 1,277,542
For the purposes of the cash flow statement, cash and cash equivalents comprise balances with less than
91 days maturity from the date of acquisition including: cash and balances with Bank of Tanzania and
Placement with other banks. Cash and cash equivalents exclude the cash reserve requirement (SMR)
held with the Bank of Tanzania.

NMB BANK PLC
39. NOTES TO THE STATEMENT OF CASH FLOWS

2023
Note TZS’ 2022
Millions TZS’ Millions
(a) GROUP
Operating activities
Adjustment for:
Depreciation and amortization 17 49,444 53,637
Gain on modification of lease 29 284 2,606
Profit on disposal of property and equipment 14 (294) (590)
Realised gain on government security - FVOCI 24(b) (5,780) (5,353)

Realised gain on disposal of government securities at
24(a) (1,747) -
amortized cost
Interest income from government security - FVOCI 24(b) (2,705) (4,674)

Interest income from government security amortised
24(a) (206,092) (162,816)
at cost
Interest expense on lease 11(a) 2,218 2,106
Interest expense on borrowings 35 73,697 38,362
Foreign exchange loss on borrowings 35 26,574 4,073
Foreign exchange loss on lease liability 152 -
Credit impairment charge 84,435 81,067
Dividend income 14 (55) (50)
794,932 623,533
Movement in operating assets:
Statutory Minimum Reserve (44,751) (23,987)
Net investment in securities at FVOCI 591 27,446
Loans and advances to customers (1,776,672) (1,441,737)
Other assets 55,167 (84,873)
Deposits from customers 870,776 931,943
Deposits due to other banks 2,563 12,037
Other liabilities 45,192 8,290
Provisions 34 352 770
Cash (used in)/generated from operations (51,850) 53,422

NMB BANK PLC
39. NOTES TO THE STATEMENT OF CASH FLOWS (CONTINUED)
2023 2022
Note TZS’ TZS’
Millions Millions
(b) BANK
Operating activities
Adjustment for:
Depreciation and amortization 17 50,329 54,509
Gain on modification of lease 29 284 (5)
Profit on disposal of property and equipment 14 (294) (590)
Realised gain on government security - FVOCI 24(b) (5,780) (5,353)

Realised gain on disposal of government securities at
24(a) (1,747) -
amortized cost
Interest income from government security - FVOCI 24(b) (2,705) (4,674)

Interest income from government security amortised
24(a) (206,092) (162,816)
at cost
Interest expense on lease 11(b) 5,341 5,393
Interest expense on borrowings 35 73,697 38,362
Foreign exchange loss on borrowings 35 26,574 4,073
Foreign exchange loss on lease liability 152 118
Credit impairment charge 84,435 81,067
Dividend income 14 (55) (50)
794,506 621,645
Movement in operating assets:
Statutory Minimum Reserve (44,751) (23,987)
Net investment in securities at FVOCI 591 27,466
Loans and advances to customers (1,776,672) (1,441,737)
Other assets 55,801 (85,322)
Deposits from customers 874,531 935,886
Other liabilities 45,851 10,167
Provisions 34 352 770
Cash (used in)/generated from operations (47,228) 56,905
*The cash flow statement for the comparative period ended 31 December 2022 has been updated to make
the following enhancement as required by IAS 7:31 and has a nil impact.
• Investment and proceeds from investment securities at FVOCI have been reclassified from cash
flows from investing activities to operating activities which amounts to TZS 133,443 million and TZS
160,889 million respectively.
• Interest received from investments in securities held at FVOCI and HTM amounting to TZS 9,954
million and TZS 147,162 million and interest paid on borrowings and leases amounting to TZS 40,673
million and TZS 5,247 million have been reclassified from cash flows from investing activities and
financing activities to operating activities.

NMB BANK PLC
40. (a) FINANCIAL INSTRUMENTS BY CATEGORY (GROUP)

Fair Value
Amortised Cost through OCI Total
As at 31 December 2023 Millions Millions Millions
Financial assets
Cash and balances with Bank of Tanzania 1,340,934 - 1,340,934
Investment securities – at amortised cost 2,245,260 - 2,245,260
Investment securities – FVOCI - 28,345 28,345
Placement and balances with other banks 336,759 - 336,759
Loans and advances to customers 7,706,925 - 7,706,925
Equity investments - 2,920 2,920
Other assets (excluding non-financial assets) * 105,883 - 105,883
11,735,761 31,265 11,767,026
Financial assets
9,839,606 31,698 9,871,304
2023 2022
Financial liabilities at amortised cost TZS’ TZS’
Millions Millions
Deposits from customers 8,465,608 7,594,741
Borrowings 1,380,193 749,354
Other liabilities (excluding non-financial liabilities) ** 143,599 120,954
10,033,252 8,505,666
*Prepayments, inventory, provision for other assets and stationery are excluded from other assets

NMB BANK PLC
40. (b) FINANCIAL INSTRUMENTS BY CATEGORY (BANK)

Fair Value
Amortised Cost through OCI Total
As at 31 December 2023 Millions Millions Millions
Financial assets
11,733,849 31,265 11,765,114
Financial assets
9,839,606 31,698 9,871,304
2023 2022
Financial liabilities at amortised cost TZS’ TZS’
Millions Millions
Deposits from customers 8,474,678 7,600,149
Borrowings 1,380,193 749,354
Other liabilities (excluding non-financial liabilities) ** 147,606 120,954
10,082,678 8,551,635
*Prepayments, inventory, provision for other assets and stationery are excluded from other assets

NMB BANK PLC
41. CONTINGENT LIABILITIES AND COMMITMENTS (GROUP AND BANK)
(a) Loan commitments guarantee and other financial facilities
In common with other banks, the Bank conducts business involving acceptances, letters of credit,
guarantees, performance bonds and indemnities. The majority of these facilities are offset by
corresponding obligations of third parties.
As at 31 December 2023, the Bank had the contractual amounts of off-balance sheet financial
instruments that commit it to extend credit to customers, guarantee and other facilities, as follows: -
2023 2022
Commitments TZS’ TZS’
Millions Millions
Guarantees and indemnities 1,028,592 558,225
Undrawn commitments 319,530 242,993
Acceptances and letters of credit 1,067,864 1,151,212
2,415,986 1,952,430
Acceptances and letters of credit
An acceptance is an undertaking by a bank to pay a bill of exchange drawn on a customer. The
Bank expects most acceptances to be presented, and reimbursement by the customer is normally
immediate. Letters of credit commit the Bank to make payments to third parties, on production of
documents, which are subsequently reimbursed by customers.
(b) Legal claims
Some previous loan customers and ex-employees are suing the Bank for various reasons. With the
exception of amounts disclosed in Note 34, the amounts claimed in both situations are not material
and professional advice indicates that it is unlikely that any significant loss will arise.
(c) Capital commitments
As at 31 December 2023, the Bank had capital commitments of TZS 111,721 million (2022: TZS
79,956 million) The expenditure contracted as at the end of reporting period but not yet incurred is as
follows:

NMB BANK PLC
41. CONTINGENT LIABILITIES AND COMMITMENTS (GROUP AND BANK) (CONTINUED)

2023 2022
(c) Capital commitments (Continued) TZS’ TZS’
Millions Millions
Information technology 40,647 37,563
Branch and business centers remodeling 14,700 9,709
Others including equipment, vehicles and furniture 56,374 32,684
111,721 79,956
The Bank’s management is confident that future net revenues and funding will be sufficient to cover
these commitments.
(d) Lease commitments

As of 31 December 2023, the Group and Bank had short term lease commitments of TZS 291 million
(2022: TZS 474 million).
42. EFFECTIVE INTEREST RATES OF FINANCIAL ASSETS AND LIABILITIES (GROUP AND BANK)
The effective interest rates for the principal financial assets and liabilities at 31 December 2023 were as
follows:
2023 2022
% %
Investment securities 9.28 8.75
Placements and balances with other banks 3.55 5.50
Loans and advances to customers 12.44 12.90
Deposits from customers 1.93 1.62
Deposits due to other banks 21.28 3.25
Borrowings 5.34 5.12
43. RELATED PARTY TRANSACTIONS AND BALANCES
number of banking transactions are entered into with related parties in the normal course of business.
A
These include loans, deposits and foreign currency transactions.
The volumes of related party transactions, outstanding balances at year-end, and related expense and
income for the year are as follows:
(a) Loans and advances to related parties
At 31 December 2023 there were no loans issued to companies controlled by the Directors or
their families. Advances to customers as of 31 December 2023 include loans to key management
personnel and Directors as follows:

NMB BANK PLC
43. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED)
(a) Loans and advances to related parties (Continued)

2023 2022
GROUP AND BANK TZS’ TZS’
Millions Millions
Key management personnel and Directors
At start of year 5,140 3,800
Advanced during the year 4,883 2,797
Repaid during the year (1,355) (1,457)
At end of year 8,668 5,140
Interest income earned 237 233
Provision recognized in respect of loans given by the Group and Bank to key management personnel
amounted to TZS 46 million (2022: TZS 27 million) in line with IFRS 9 requirements. Mortgage loans
issued to key management were secured and the rest were unsecured. These loans carry off-market
interest rates ranging between 5% and 9%. As of 31 December 2023, the Group and Bank held
collateral valued at TZS 2,892 million (2022: TZS 2,258 million) with respect to loans and advances
to senior management and Directors.
The Lending to key management personnel includes lending to the Directors amounting to TZS 269
million as at 31 December 2023 (2022: TZS 208 million), which were charged at market (commercial)
interest rate.
(b) Deposits from related parties Directors and key

Management personnel
2023 2022
GROUP
Deposits at the beginning of the year 3,944 306
Deposits received during the year 17,412 13,519
Deposits repaid during the year (22,412) (9,881)
Deposits as at the end of the year (1,056) 3,944
Interest expense 7 2

NMB BANK PLC
(b) Deposits from related parties (continued)
Directors and key

Related companies
Management personnel
2023 2022 2023 2022
TZS’ TZS’ TZS’ TZS’
Millions Millions Millions Millions
Deposits at the beginning of the year 2 306 5,309 1,367
Deposits received during the year 12,096 8,203 5,315 5,315
Deposits repaid during the year (11,848) (8,507) (1,564) (1,373)
Deposits as at the end of the year 250 2 9,060 5,309

Interest expense 7 2 600 -
The above deposits are unsecured, carry variable interest rate and are repayable on demand.
Related companies included in this disclosure is Upanga Joint Venture Company Limited.
(c) Transactions and balances with Rabobank (GROUP AND BANK)
Based on the management service contract approved by the Board, a total of TZS 450 million (2022:
TZS 476 million) was paid to Rabobank during the year as management and technical assistance
expenses. Management fees payable as at year-end was TZS 344 million (2022: TZS 142 million).
Nostro balances with Rabobank at year-end amounted to TZS 31,818 million (2022: TZS 16,744
million). There was no inter-bank balance due to Rabobank as at year-end. The Bank did not incur
any expenses which were refundable from Rabobank (2022: Nil).
(d) Transactions and balances with Upanga Joint Venture (BANK)
During the year, the Bank made lease payments of TZS 5 billion to Upanga Joint Venture Limited
(2022: TZS 5 billion). The Bank charged UJVC management fee in the sum of TZS 27.65 million
(2022: 27.65 million). As at 31 December the balance payable to the Bank for the management fee
amounted to TZS 165.9 million (2022: TZS 138.2 million).
The Bank occasionally settles expenses on behalf of UJVC. As of December 31, 2023, the Bank’s
receivables from UJVC was TZS 1.53 billion (2022: TZS 1.53 billion), whereas ECL was TZS 157
million (2022: TZS 490 million).

NMB BANK PLC
(e) Key management compensation

2023 2022
(GROUP AND BANK) TZS’ TZS’
Millions Millions
Salaries and other short-term benefits 7,351 6,610
Post-employment benefits - defined contribution plan 823 669
8,174 7,279
Key management personnel are described as those persons having authority and responsibility for
planning, directing and controlling the activities of the Bank, directly or indirectly. The compensation
made to expatriates from Rabobank is included in the management service contract highlighted in
part (c) above and therefore excluded in the above benefits.
(f) Transactions and balances with Government of Tanzania (GROUP AND BANK)
The Government of Tanzania owns 31.8% (2022: 31.8%) of the equity of the Bank. The Bank
invested in government securities during the year and at the year-end the amount receivable from
the Government of Tanzania in the form of treasury bills and bonds amounted to TZS 2,273,605
million (2022: TZS 1,940,532 million). Interest earned from investment in government securities
during the year was TZS 208,383 million (2022: TZS 167,489 million), Service fee earned from the
government due to transactional services performed amounted to TZS 469 million (2021: TZS 2,177
million). For balances outstanding as at 31 December 2023 and 31 December 2022, expected credit
loss provided stood at TZS 114 million (2022: TZS 882million). The Bank also accepts deposits from
various government institutions and agencies which do not attract interest.
(g) Directors’ remuneration (GROUP AND BANK)
Fees and other emoluments paid to Directors of the Bank during the period amounted to TZS 1,447
million (2022: TZS 752 million). Details of payment to individual Directors will be tabled at the Annual
General Meeting.
44. BANCASSURANCE
The revenue generated from bancassurance services for the year ended 31 December 2023 amounted to
TZS 14,070 million (2022: TZS 8,280 million) while costs incurred amounted to TZS 1,789 million (2022:
TZS 862 million) resulting to the net income of TZS 12,227 million (2022: TZS 7,361 million). The income
from of bancassurance for the Group and Bank has been disclosed as part of net fees and commission
income in note 13.
45. EVENTS AFTER THE REPORTING PERIOD
There were no events after the reporting period, not otherwise dealt with in these financial statements, that
had material impact to the consolidated and Bank financial statements.

413 | NMB Annual Report 2023
Company
Information
NMB Annual Report 2023 | 414

Company
Information
NOTICE OF THE 24TH ANNUAL GENERAL MEETING

OF THE MEMBERS OF NMB BANK PLC
Notice is hereby given that the 24th Annual General Meeting of NMB Bank Plc
Shareholders will be held Virtually on Friday, 7th June 2024 at 10.00 a.m.
The agenda will be as follows:
24.1 NOTICE AND QUORUM
24.2 ADOPTION OF THE AGENDA
24.3 CONFIRMATION OF THE MINUTES OF THE 23RD ANNUAL GENERAL MEETING

HELD ON 2ND JUNE 2023
24.4 MATTERS ARISING FROM THE PREVIOUS MEETING
24.5 TO RECEIVE, CONSIDER AND ADOPT THE DIRECTORS’ REPORT AND AUDITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023
24.6 DIVIDEND DECLARATION FOR THE FINANCIAL YEAR 2023
24.7 TO RECEIVE AND APPROVE THE PROPOSAL FOR DIRECTORS’ REMUNERATION
24.8 RESIGNATION AND APPOINTMENT OF DIRECTORS
24.9 TO RECEIVE AND APPROVE APPOINTMENT OF EXTERNAL AUDITORS FOR THE

FINANCIAL YEAR 2024
24.10 ANY OTHER BUSINESS

Key
Contacts
NMB HEAD OFFICE PRIVATE BANKING
Ohio / Ali Hassan Mwinyi Road P.O. Box Box 9213, Dar es Salaam
P.O. Box , Dar es Salaam Tel: (General): +255 22 2322000
Tel: (General): +255 222322000
Fax: +255 222112148 WHOLESALE BANKING
GOVERNMENT BUSINESS
INVESTOR RELATIONS P.O. Box 9213, Dar es Salaam
P.O. Box , Dar es Salaam Tel: (General): +255 22 2322000
Tel: (General): 0800 002 002 INSTITUTIONAL BANKING
While outside Tanzania: 0808 002 022 P.O. Box 9213, Dar es Salaam
Email: [email protected] Tel: (General): +255 22 2322000
TRANSACTIONAL BANKING
RETAIL BANKING P.O. Box 9213, Dar es Salaam
BUSINESS BANKING Tel: (General): +255 22 2322000
P.O. Box 9213, Dar es Salaam CORPORATE BANKING
Tel: (General): +255 22 2322000 P.O. Box 9213, Dar es Salaam
PERSONAL BANKING Tel: (General): +255 22 2322000
P.O. Box 9213, Dar es Salaam AGRI-WHOLESALE
Tel: (General) : +255 22 2322000 P.O. Box 9213, Dar es Salaam
PRODUCTS & CHANNELS Tel: (General): +255 22 2322000
P.O. Box Box 9213, Dar es Salaam
Tel: (General): +255 22 2322000 TREASURY
BANCASSURANCE FOREIGN EXCHANGE
P.O. Box Box 9213, Dar es Salaam P.O. Box 9213, Dar es Salaam
Tel: (General): +255 22 2322000 Tel: (Direct): +255 22 2322020
AGRI-RETAIL MONEY MARKETS
Tel: (General): +255 22 2322000 Tel: (Direct): +255 22 2322010
CARD BUSINESS CUSTODY & ADVISORY
Tel: (General): +255 22 2322000 Tel: (General): +255 22 2322000

Company
Information
Network
Distribution
DSM Zone
Branch Name Region District Street/ Road Telephone
Airport Dar es Salaam Ilala Nyerere road 022-232-4200
Bank House Dar es Salaam Ilala Samora ave/Pamba road 022-232-4128
Congo Street Dar es Salaam Ilala Congo street 022-232-4154
Gongo la Mboto Dar es Salaam Ilala Nyerere Rd 022-232-4160
Ilala Dar es Salaam Ilala Uhuru road 022-232-4116
Kariakoo Dar es Salaam Ilala Livingstone St 022-232-4112
Kariakoo Business Center Dar es Salaam Ilala Mafia/Swahili street 022-232-4205
Mandela Road Dar es Salaam Ilala Mandela Rd, TOT Tabata area 022-232-4157
Morogoro Road Dar es Salaam Ilala Morogoro road/ Mshihiri 022-232-4104
Muhimbili Dar es Salaam Ilala Kalenga 022-232-4141
Ohio Dar es Salaam Ilala Ohio/Ali Hassan Mwinyi 022-232-2726
Kigamboni Dar es Salaam Kigamboni Ferry street 022-232-4174
Magomeni Dar es Salaam Kinondoni Morogoro road 022-232-4108
Mbezi Dar es Salaam Kinondoni Bagamoyo Road 022-232-4163
Mlimani City Dar es Salaam Kinondoni Sam Nujoma road 022-232-4120
Msasani Dar es Salaam Kinondoni Kimweri Avenue 022-232-4190
Bagamoyo Pwani Bagamoyo Bank street 022-232-4267
Chalinze Pwani Bagamoyo Chalinze-Dar RD, Chalinze area 022-232-4227
Kibaha Pwani Kibaha Maili moja- mkoani 022-232-4261
Mlandizi Pwani Kibaha Morogoro road, Mlandizi stand 022-232-4276
Kisarawe Pwani kisarawe Sokoni 022-232-4264
Mafia Pwani Mafia Kilindoni 022-232-4197
Mkuranga Pwani Mkuranga Bank street 022-232-4270
Kibiti Pwani Rufiji Lindi-kibiti rd 022-232-4273
Tandika Dar es Salaam Temeke Bus stand, Ugweno Street 022-232-4194
Temeke Dar es Salaam Temeke Temeke street/Mbagala road 022-232-4100
TPA Bandari Dar es Salaam Temeke TPA, Mandela Rd 022-232-4126
Mbezi Louis area opp. Old
Mbezi Louis Dar es Salaam Ubungo 022-232-4212
Morogoro road
Bagamoyo Pwani Bagamoyo Bank street 022-232-4267
Chalinze Pwani Bagamoyo Chalinze-Dar RD, Chalinze area 022-232-4227
Kibaha Pwani Kibaha Maili moja- mkoani 022-232-4261
Mlandizi Pwani Kibaha Morogoro road, Mlandizi stand 022-232-4276
Kisarawe Pwani kisarawe Sokoni 022-232-4264
Mafia Pwani Mafia Kilindoni 022-232-4197
Mkuranga Pwani Mkuranga Bank street 022-232-4270
Kibiti Pwani Rufiji Lindi-kibiti rd 022-232-4273

Chakechake Kusini Pemba Chakechake Msingini 022-232-4144
Paje Kusini Unguja Kusini Paje Town round about 022-232-4859
Central Zone
Mission street/Bahi Distr.
Bahi Dodoma Bahi 022-232-4054
Building
Chamwino Ikulu/Chamwino
Chamwino Dodoma Chamwino 022-232-4051
Distr. Building
Bunge Dodoma Dodoma Parliament Grounds, Uzunguni 022-232-4009
Dodoma Dodoma Dodoma One Way / Kuu Street 022-232-4060
PSPF building, 18 Jakaya
Kambarage Dodoma Dodoma 022-232-4072
Kikwete rd, adjacent to BOT
Makole Business Center Dodoma Dodoma Kuu Street / Nyerere rd 022-232-4066
Mazengo Dodoma Dodoma Kuu Street 022-232-4063
UDOM Dodoma Dodoma Nyerere 022-232-4006
Kondoa Dodoma Kondoa Chem Chem 022-232-4024
Kibaigwa Dodoma Kongwa Dodoma Highway 022-232-4018
Kongwa Dodoma Kongwa Dodoma Road 022-232-4012
Mpwapwa Dodoma Mpwapwa Post Offfice Area 022-232-4015
Gairo Morogoro Gairo Morogoro Road Gairo area 022-232-4279

Ifakara Morogoro Kilombero Nduna street 022-232-4243
Kilombero/
Mlimba Morogoro Mlimba A, Kituo cha afya road 022-232-4294
Mlimba
Dumila Morogoro Kilosa Dumila 022-232-4255
Kilombero Morogoro Kilosa Kidodi 022-232-4240
Kilosa Morogoro Kilosa Jamhuri 022-232-4252
Madaraka rd - Misegese area
Malinyi Morogoro Malinyi 022-232-4519
near Malinyi DC offices
Morogoro Business Madaraka street Opp. Morogoro
Morogoro Morogoro MC 022-232-4282
Center MC building
Mount Uluguru Morogoro Morogoro MC Masika area 022-232-4237
LAPF Building /Msamvu Bus
Msamvu Morogoro Morogoro MC 022-232-4257
Terminal
SUA Main Campus -
SUA Morogoro Morogoro MC 022-232-4231
Administrative area
Wami Morogoro Morogoro MC Uhuru street 022-232-4231
Turiani Morogoro Mvomero Madizini 022-232-4249
Mahenge Morogoro Ulanga Kilosa Rd 022-232-4246

Opp. Ikungi District council's
Ikungi Singida Ikungi 022-232-4057
building
Kiomboi Singida Iramba Karume/Thomas Mussa 022-232-4048
Itigi Singida Manyoni Majengo 022-232-4027
Manyoni Singida Manyoni Kipondoa Dodoma - Singida Rd 022-232-4045
Mitundu Singida Manyoni - Itigi Mitundu bus stand 022-232-4029
Mkalama Singida Mkalama Nduguti 022-232-4069
Singida Singida Singida MC Majengo/Karume Road 022-232-4042
Babati Manyara Babati TC Police Line 022-232-4003

Katesh Manyara Hanang Machakos 022-232-4039
Kibaya Manyara Kiteto Bomani 022-232-4021
Haydom Manyara Mbulu Hydom Old bus stand street 022-232-4033
Mbulu Manyara Mbulu Karatu Road 022-232-4030
Mirerani Manyara Simanjiro Kisimani opp police station 022-232-4751
Simanjiro Manyara Simanjiro Boma 022-232-4036
Northern Zone
Arusha Business Center Arusha Arusha Makongoro Road 022-232-4942
Arusha Market Arusha Arusha Martin Road 022-232-4945
Clock Tower Arusha Arusha Sokoine road/Joel Maeda Street 022-232-4948
Kwa Mrombo market - mwisho
Kwa Mrombo Arusha Arusha 022 232 2997
wa Lami
Ngarenaro Arusha Arusha Sokoine Road 022-232-4990
Karatu Arusha Karatu Ngorongoro Road 022-232-4724
Namanga Arusha Longido Eworendeke 022-232-4784
Ngaramtoni town - along
Ngaramtoni Arusha Meru 022-232-4987
Namanga/Nairobi rd
Usa River Arusha Meru Arusha/Himo Road 022-232-4939
Monduli Arusha Monduli Boma Road 022-232-4718
Along ngorongoro road/mto wa
Mto wa Mbu Arusha Monduli 022-232-4790
mbu
Loliondo Arusha Ngorongoro Wasso 022-232-4721
Hai Kilimanjaro Hai Moshi/Arusha Road 022-232-4742

Himo Kilimanjaro Moshi DC Himo/Marangu Road 022-232-4720
Mawenzi Kilimanjaro Moshi MC Rengua 022-232-4963
Mbuyuni Kilimanjaro Moshi MC Mbuyuni 022-232-4966
Nelson Mandela Kilimanjaro Moshi MC Market 022-232-4776
Mwanga Kilimanjaro Mwanga C.D Msuya 022-232-4727
Holili border post
Holili Kilimanjaro Rombo 022-232-4720
Tanzania&Kenya
Rombo Kilimanjaro Rombo Rombo Mkuu 022-232-4994

Tarakea Kilimanjaro Rombo Moshi/Arusha Road 022-232-4745
Hedaru Kilimanjaro Same Hedaru A 022-232-4762
Same Kilimanjaro Same Bank/Posta 022-232-4996
Siha Kilimanjaro Siha Sanya Juu area 022-232-4748
Handeni Tanga Handeni Kondoa Road 022-232-4951

Mkata kwavunde - along
Mkata Tanga Handeni 022-232-4763
highway of Dsm - Tanga
Kilindi Tanga Kilindi Songe 022-232-4954
Mombo Tanga Korogwe Lushoto Road 022-232-4900
Korogwe Tanga Korogwe TC DSM-Arusha Road 022-232-4957
Bumbuli Tanga Lushoto Kwemuae, Bumbuli 022-232-4757
Lushoto Tanga Lushoto Main Road 022-232-4903
Mkinga Tanga Mkinga Mkinga District Council offices 022-232-4716
Muheza Tanga Muheza Posta 022-232-4981
Pangani Tanga Pangani Usalama Street 022-232-4736
Madaraka Tanga Tanga Market/Clock Tower Street 022-232-4960
Ngamiani Tanga Tanga Ngamiani 022 232 -4953
Highland Zone
Busokelo Mbeya Busokelo Busokelo district council 025 232 4414
Chunya Mbeya Chunya Mbeya -Tabora 022-232-4325
Makongorosi Mbeya Chunya Mkwajuni road 022-232-4050
Highway road to Malawi/Ngisi
Kasumulu Mbeya Kyela 022-232-4374
str.
Kyela Mbeya Kyela Mbondeni A 022-232-4344
Mbarali Mbeya Mbarali Ihanga 022-232-4322
Mwanjelwa Mbeya Mbeya CC Tunduma Road 022-232-4341
Mbeya City
Mbalizi Road Mbeya Mbalizi Road 022-232-4334
Council
Uyole Mbeya Mbeya DC Uyole Industrial / Uyole stand 022-232-4359
Tukuyu Mbeya Rungwe Bomani 022-232-4395
Mkwawa Iringa Iringa Uhuru /Dodoma road 022-232-4300

Ruaha Iringa Iringa town Miomboni 022-232-4389
Ilula Iringa Kilolo Mtua 022-232-4362
Kilolo Iringa Kilolo Luganga 022-232-4304
Mafinga Iringa Mafinga TC Mbeya/Songea Road 022-232-4307
Mlele Katavi Mlele Inyonga / Mlele DC 022-232-4353

Mpanda Katavi Mpanda TC Madukani Road 022-232-4350
Majimoto ward, Migunga str.
Majimoto Katavi Mpimbwe 022-232-4841
Kibaoni/Inyonga rd

Ludewa Njombe Ludewa Kanisa 022-232-4316
Makambako Njombe Makambako Songea Rd 022-232-4310
Makete Njombe Makete Makete Rd 022-232-4319
Njombe Njombe Njombe TC Songea Road 022-232-4313
Wanging'ombe Njombe Wanging'ombe Igwachanya 022-232-4378
Kalambo Rukwa Kalambo Kalambo District council 022-232-4356

Nkasi Rukwa Nkasi Soko Kuu 022-232-4368
Nkusa - sumbawanga to mbeya
Laela Rukwa Sumbawanga 022-232-4380
road
Sumbawanga Rukwa Sumbawanga Mbeya Road 022-232-4392
Mbozi Songwe Mbozi Independence 022-232-4383

Mlowo Songwe Mbozi Tunduma Rd, Mlowo centre 022-232-4365
Mwambani road - Kona ya
Mkwajuni Songwe Songwe 022-232-4386
mbeya
Usongwe Songwe Songwe Tunduma road 022-232-4347
Tunduma Songwe Tunduma Zambia Road 022-232-4398
Lake Zone
Rock City Mwanza Ilemela Ghana street/Airport road 022-232-4469
Ngudu Mwanza Kwimba Kakola 022-232-4532
Magu Mwanza Magu Bank Street 022-232-4523
Misungwi Mwanza Misungwi Shinyanga Road 022-232-4526
Mwanza
Buzuruga Mwanza Musoma rd 022-232-4440
Nyamagana
Buhongwa Mwanza Nyamagana Buhongwa 022-232-4573
Igoma Mwanza Nyamagana Musoma rd / Kwa Gachuma 022-232-4555
Kenyatta Road Mwanza Nyamagana Kenyatta Road 022-232-4513
Mwanza Business Center Mwanza Nyamagana Kenyatta Road 022-232-4455
Pamba Mwanza Nyamagana Pamba road 022-232-4466
Sengerema Mwanza Sengerema Bank Street 022-232-4540
Nansio Mwanza Ukerewe Boma Road 022-232-4529
Bukombe Geita Bukombe Ushilombo 022-232-4600

Chato Geita Chato Bukoba road 022-232-4443
Geita Geita Geita Street Bank 022-232-4510
Katoro Geita Geita Stamico street 022-232-4480
Mbogwe Geita Mbogwe Masumbwe 022-232-4600
Kharumwa Msalala -
Nyang'hwale Geita Nyang'hwale 022-232-4431
Butalanda str.

Biharamulo Kagera Biharamulo Mankorongo 022-232-4543
Junction of Uganda/Jamhuri
Kaitaba Kagera Bukoba 022-232-4546
road
Kayanga Kagera Karagwe Bomani 022-232-4445
Kyerwa Kagera Kyerwa Kyerwa District council 022-232-4433
Nkwenda Kagera Kyerwa Nkwenda/ kaisho road 022-232-4492
Misenyi Kagera Misenyi Kyaka 022-232-4498
Mtukula Kagera Misenyi Mtukula TRA building / border 022-232-4434
Muleba Kagera Muleba Nyerere 022-232-4451
Kabanga Kagera Ngara Nzaza, TRA Burundi border 022-232-4558
Ngara Kagera Ngara Nyerere Road 022-232-4549
Rusumo Kagera Ngara Kagera / Rwanda border 022-232-4483
Bunda Mara Bunda Bank St 022-232-4501

Butiama Mara Butiama Muhunda Street 022-232-4437
Musoma Mara Musoma MC Nyerere Road 022-232-4463
Rorya Mara Rorya Shirati 022-232-4495
Rorya District Council Mara Rorya Ingri juu 022-232-4477
Mugumu Mara Serengeti Bomani 022-232-4448
Nyamongo Mara Tarime Bom gate 022-232-4460
Forodhani, border of Tanzania
Sirari Mara Tarime 022-232-4489
-Kenya
Tarime Mara Tarime Bank Street 022-232-4507
Western Zone
Igunga Tabora Igunga Bank 022-232-4618
Nkinga Tabora Igunga Nkinga bus stand 022-232-4666
Kaliua Tabora Kaliua Ushokora, Kigoma highway 022-232-4609
Nzega Tabora Nzega Bank st 022-232-4645
Sikonge Tabora Sikonge Police Line Mbeya -Tabora Rd 022-232-4654
Mihayo Tabora Tabora Jamhuri 022-232-4651
Urambo Tabora Urambo Boma Village 022-232-4657
Buhigwe Kigoma Buhigwe Buhigwe 022-232-4219

Kakonko Kigoma Kakonko Kanyomvi Road 022-232-4621
Kasulu Kigoma Kasulu TC Kigoma Road 022-232-4606
Kibondo Kigoma Kibondo Boma 022-232-4624
Kigoma Kigoma Kigoma-Ujiji MC Kigoma 022-232-4612
Uvinza Kigoma Uvinza Lugufu - at Uvinza DC buildings 022-232-4648

Southern Zone
Masasi Mtwara Masasi TC Masasi Road 022-232-4809
Mtwara Mtwara Mtwara MC Vigaeni / Sinani - PPF Plaza 022-232-4800
Mtwara Business Center Mtwara Mtwara MC Tanu road 022-232-4851
Nanyumbu Mtwara Nanyumbu Kilimani Hewa 022-232-4812
Newala Mtwara Newala Nangwala 022-232-4803
Tandahimba Mtwara Tandahimba Mji Mpya 022-232-4806
Kilwa Masoko Lindi Kilwa Kilwa Road 022-232-4821

Lindi Lindi Lindi Bima Street 022-232-4818
Liwale Lindi Liwale Nachingwea Road 022-232-4824
Ndanda Lindi Masasi DC Masasi Road 022-232-4815
Nachingwea Lindi Nachingwea Government Road 022-232-4830
Ruangwa Lindi Ruangwa Bomani 022-232-4827
Litembo Ruvuma Mbinga RC Mission 022-232-4843

Mbinga Ruvuma Mbinga Nyerere road 022-232-4845
Namtumbo Ruvuma Namtumbo Tunduru Rd 022-232-4839
Nyasa Ruvuma Nyasa Likwilu str. near DC office 022-232-4848
Madaba Ruvuma Songea DC Mkwera- Mtepa 022-232-4854
Songea Ruvuma Songea MC Sokoine/Market 022-232-4833
Tunduru Ruvuma Tunduru Masasi - Songea Road 022-232-4836

NMB Bank PLC
Head Office
Ohio/Ali Hassan Mwinyi Road
P.O. Box 9213, Dar es Salaam
Tel: (General) +255 22 232 2000
Fax: +255 22 211 2148

NMB Integrated Annual Report 2023

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NMB Integrated Annual Report 2023

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Copyright:

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Integrated

Purpose of this report

Financial and non-financial reporting

Report content and materiality.

OVERVIEW 1 SUSTAINABILITY AGENDA 110

STRATEGY REVIEW 24 CORPORATE GOVERNANCE 144

INVESTING IN DIGITAL ANNEXURE 414

OUR PEOPLE 102

ACCA Association of Chartered Certified EPS Earnings per Share

CDIoDT Certified Director by the Institute of GHG Greenhouse Gases

CIA Certified Internal Auditor IASB International Accounting Standards

EAD Exposure at Default IMF International Monetary Fund

ECL Expected Credit Losses ISA International Standards on Auditing

EIB European Investment Bank ISIN International Securities Identification

NAV Net Asset Value Tn Trillion

NDC National Development Council TSI Tanzania Stock Index

NGO Non Governmental Organization TZS Tanzanian Shillings

NMB NMB Bank Plc UNDP United Nations Development

PSSSF Public Service Social Security Fund

We are Tanzania’s leading financial

1 | NMB Integrated Annual Report 2023

468 Cost to Income

NMB Integrated Annual Report 2023 | 2

Scale and stability

Total Branches Wakala Outlets

shareholders, and the community

Stable ownership structure with

ARISE B.V Treasury Free Float

TZS 2.25 Tn 24.1% 21.8%

• Robust governance structure with a well-

• Operate a responsible business with the

• Inaugural Sustainable bond issued to finance

NMB Integrated Annual Report 2023 | 4

Growing Institutional Strength

Net Profit (TZS Bn) Total Capital Ratio (%)

CAGR: +40% CAGR: +589bps

Net loans and advances and customer deposits (TZS Tn)

2019 2020 2021 2022 2023

Long -Term Shareholder Value Creation

Dividend Paid (TZS Bn) Basic Earnings per Share (TZS)

Dividend per Share (TZS) Share Price Movement

49% 92% 64%

5 | NMB Integrated Annual Report 2023

7 | NMB Integrated Annual Report 2023

NMB Integrated Annual Report 2023 | 8

Our Vision​ Branches & ATMs

Our Mission Branches ATMs

To be the Bank of choice, delivering an

Internet Banking (NMB Direct):

Retail Banking Cards POS devices

Call Center, chat banking:

9 | NMB Integrated Annual Report 2023

Creating Stakeholders Value

How We Create Value How We Create Value

Their Interests Their Interests

• Safe, strong, and sustainable financial • Meaningful and impactful roles

TZS 361 9.5% TZS 386 Mn

8.5% Jamii Bond

11 | NMB Integrated Annual Report 2023

How We Create Value How We Create Value

• Providing digitally driven and enriching

• Promoting sustainable finance initiatives

• Facilitating access to financial resources

Our Vision Branches & ATMs