Stanbic Bank Tanzania Reports Record Profit, Eyes SME Sector Expansion

Stanbic Bank Tanzania has announced a remarkable year of growth, with profit after tax reaching 135 billion Tanzanian shillings ($51.2 million) in 2025 – an increase from 128 billion the previous year. This performance highlights not only the bank’s success but also Tanzania’s economic recovery following the COVID-19 pandemic.

The bank’s balance sheet expanded significantly, with total assets up 15% to 3.5 trillion shillings, customer deposits increasing by 17% to 2.4 trillion shillings, and customer loans surging 28% to 1.8 trillion shillings.

According to CEO Manzi Rwegasira, this growth reflects Tanzania’s improving economic fundamentals, particularly in key sectors like ports, transport, mining, and tourism. “Companies have regained confidence, invested more, and we’re seeing that reflected in our numbers,” he stated. The broader banking sector also experienced a 21% profit increase to 2.62 trillion shillings in 2025.

Focus on Efficiency and Risk Management

While acknowledging the positive macroeconomic environment, Rwegasira emphasized Stanbic’s commitment to cost discipline and risk management as key drivers of its success. The bank maintained a cost-to-income ratio of 43.6%, below the industry average of 45%.

“We always aim to have revenues growing faster than our costs, and we’ve been able to maintain that,” Rwegasira explained. Similarly, asset quality remained resilient with non-performing loans at 2.4% versus an industry average of 2.8%.

Strategic Shift Towards SMEs and Retail

Rwegasira highlighted the bank’s strategic focus on expanding its presence in the small and medium-sized enterprise (SME) and retail segments, which currently represent untapped potential despite Stanbic’s dominant position in corporate banking.

The bank has already invested in expanding its branch network from 15 to 20 and introducing over 800 banking agents. Digital solutions have also been prioritized to reach clients more conveniently.

“We are increasingly focused on growing our retail and SME presence,” Rwegasira affirmed, noting that these divisions are now sustainably profitable after an earlier challenging entry into the SME market. “The real challenge with SMEs in Africa is the lack of formal structures – as organizations become more sophisticated, their risk profiles improve.”

With Tanzania’s economy showing continued promise, Stanbic Bank appears well-positioned to capitalize on further growth opportunities while diversifying its client base beyond corporate accounts.