The Tanzania banking sector recorded a 17.1% rise in profit to TZS 2.11 trillion, approximately USD 798.9 million, in the nine months to September 2026. This growth was reported in the Tanzania Banking Performance and Outlook analysis by AML Finance Limited, a Dar es Salaam-based microfinance company. The analysis, prepared by Managing Director Reginald Massawe, covered 43 banks and financial institutions. It was based on published unaudited financial statements for the nine months ended 30 September 2026.
The banking sector's total assets stood at TZS 97.73 trillion, approximately USD 36.9 billion, while loans and advances were TZS 59.27 trillion, approximately USD 22.4 billion. Customer deposits reached TZS 65.12 trillion, approximately USD 24.7 billion, at the end of September 2026. The sector's total income was TZS 8.53 trillion, comprising TZS 6.30 trillion in interest income and TZS 2.23 trillion in non-interest income.
The banking sector's performance was driven by key players, with CRDB Bank Plc and NMB Bank Plc earning 61.9% of the sector's profit. CRDB earned TZS 672.07 billion, up 29%, on assets of TZS 27.45 trillion, while NMB earned TZS 634.60 billion, up 17%, on assets of TZS 19.31 trillion. Other notable performers included National Bank of Commerce, Stanbic Bank, and People's Bank of Zanzibar.
The sector's average return on assets was 1.7%, and return on equity was 9.6%. The cost-to-income ratio stood at 69.3%, compared with 66.0% a year earlier. The non-performing loan ratio was 5.8%. The sector employed 22,307 staff, with a cost per staff averaging TZS 66 million.
The report noted that 16 institutions with assets above TZS 1 trillion hold 92.8% of industry assets and earn 96.3% of its profit. Profit growth was strongest at Access Bank with 110%, Ecobank Tanzania with 107%, Equity Bank with 59%, and Mwanga Hakika Bank with 48%. Ecobank Tanzania posted the highest return on equity at 34.0%.
The report also highlighted the competitive landscape, with Tanzania having about 35 commercial banks against an estimated 2026 GDP of USD 94.9 billion. This ratio is roughly one bank per USD 2.7 billion of GDP, compared with Kenya's 38 commercial banks and GDP of about USD 147.3 billion. The report noted that consolidation could strengthen competition with the two largest banks while also increasing concentration in the market.
The banking sector's growth is expected to continue, driven by increasing private-sector credit, which is reported to be growing by 34.2%. However, the report noted that new loans incur funding costs and loan-loss allowances before earning a full period's interest, which can delay profits. The report also highlighted the need for bank-level investigation into the contrasting results of smaller institutions, which require careful analysis to determine the main cause of losses.
Key points
- The Tanzania banking sector's profit rose 17.1% to TZS 2.11 trillion in the nine months to September 2026.
- CRDB Bank Plc and NMB Bank Plc earned 61.9% of the sector's profit.
- The sector's average return on assets was 1.7%, and return on equity was 9.6%.
