TPB Bank set to change its name to Tanzania Commercial Bank (TCB) next Wednesday to open a new era for the banking industry in the country.
The lender, which in recent years acquired several poor-operating banks, weathered difficult time, including the Covid-19 pandemic, to post a pre-tax profit of 21bn/- last year.
The TPB Chairman Dr Edmund Mndolwa told the Annual general meeting held last week in Dar es Salaam city that the name change wants to reflect the true picture of the bank at the moment. “[The name change] will prompt TPB to further improve services that meet customer expectations and reach more low-income customers,” the Chairman told the AGM.
TPB, which is wholly owned by the government, saw its assets grew to 1.0tri/- last December to move to seventh position among 50 plus list of banks in the countries.
Dr Mndolwa said the name change event will be held next Wednesday and the expected to be graced by Dr Mwigulu Nchemba, Minister for Finance and Planning.
The government in the recent past was looking into a way of consolidating its banks for a large commercial bank, a whole owned by the state. Currently, the government partially owned CRDB, NMB, NBC and Azania Bank.
In 2018, TPB took over merged Twiga Bancorp and Tanzania Women’s Bank which both were operating under losses.
The government, last June, warranted the TPB merger with TIB Corporate Bank. TIB Corporate was a subsidiary of TIB Development Bank.
TPB is one of the oldest banks in the country tracing its history in 1925 when the Tanganyika Post Office Savings Bank Ordinance was passed by the British Colonial government that established the Tanganyika Post office Savings Bank.
After the government of Tanzania began financial sector reform following the end of Ujamaa policies in the country, the Tanzania Post office Savings bank was transformed into a separate entity, the Tanzania Postal Bank.
In 1991 was separated from Tanzania Posts and Telecommunications Corporation. In January 2017, the bank officially rebranded the lender and Tanzania Postal Bank changed its name to TPB Bank Plc.
Last year TPB reported a pre-profit of 21bn/- despite troubling times of the Covid-19 pandemic which rocked the banking sector.
Dr Edmund said the bank continued to perform well and gain profits due to the efficiency and effectiveness of banking management.
The Chairman told the AGM that despite limited capital compared to other lenders it has continued to perform well in all aspects for almost ten years.
Dr Mndolwa added that the bank will continue to expand banking activities in the country and put in place effective strategies to address the current economic challenges in the financial sector in the country.
Among the services for low-income customers the lender offered are Songesha and M-Koba in partnership with mobile companies such as Vodacom.