In 1991, the government decided to enact a law establishing Tanzania Postal Bank. In fact this law came in the same session as the Banking and Financial Institutions Act, the BFI Act towards April 1991.
On the 1st March 1992, the Tanzania Postal bank commenced operations.
The main shareholders are:
United Republic of Tanzania 41 %
Tanzania Posts Corporation 10 %
Zanzibar Government 10 %
Remaining 19 %
Tanzania Postal Bank aims at becoming a leading saving bank in providing a complete range of banking and financial services to satisfy the diverse needs of individuals, as well as small and medium entrepreneurs.
To achieve this, the bank strives to offer total quality services which guarantee profitability that will ensure attractive return on investment to share holders and at the same time maintain highly motivated and dedicated staff.
|RANGE OF PRODUCTS AND SERVICES
.Ordinary Saving Account.
.Domicile Saving Account.
.Save as You Earn Scheme (SAYE), (WADU).
.Fixed Deposit Account.
.Foreign Exchange Operations.
* Installment Loans
* Personal Loans
* Letters of Credit
* Packing Credit
Throughout Western Union Money Transfer facilities, money can be sent or received worldwide within minutes. Western Union Money Transfer is the World's No. 1 trusted solution in sending or receiving money: It is RELIABLE, FAST, EASY AND CONVENIENT.
Customer Outreach continued to be the main focus of the bank as a strategy attaining increased deposits levels.
The bank continues to cooperate with Tanzania Posts Corporation, which provides access to the nation wide network of 121 offices spread across the country in both rural and urban areas.
Customer deposits grew by 7.5%.
Deposits for the bank accounted for an average of 16% of the total savings deposits mobilized from the public by banks and financial institutions
The product profile during 1998 was comprised of Savings account contributing 75.8% of the total deposits followed by WADU, which accounted for 21.5%. Other products were Time deposits and Demand deposits contributing 2.1% and 0.6% respectively as shown in the following chart.
|INVESTMENT AND RISK MANAGEMENT
TPB has always pursued approach towards lending and investments.
As such, the bank continues to make investments in avenues, which had high returns while keeping risk at minimum.
In an endeavour to diversify the range of its investments portfolio, the bank decided to enter into micro-finance area by also introducing credit facilities to rural and micro-enterprise.
Thus, the bank continued to build capacity and instil skills to the staff on the best practices in micro-finance through workshops and study hours.
The bank also approached a number of institutions for assistance to develop rural and micro finance business. These included UNDP, USAID, and The World Bank.
The profile of the bank's investment portfolio is illustrated on the chart below
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|MONEY TRANFER FACILITIES
The business of money transfer through Western Union that started operations in February 1997 continued to grow during the past two years.
In terms of transactions, there has been a growth of over 461% between the two years i.e. 1997 and 1998.
This service which is linked to over 50,000 operating points in the world was expanded to cover 14 domestic destinations in 1998 from 5 locations that prevailed in 1997.
The new locations are:
The fast growing business of WUMT has been attributed to its efficient and reliable service, rigorous advertisement and the wide area coverage.
It is the plan of the bank to introduce this facility to all the regions where TPB staff is placed.
| Due to the encouraging business performance of this facility, the bank applied for a permit from the Bank of Tanzania to enable it to introduce out-bound transfers through the same system. The permit was granted and the bank made the necessary preparations to introduce the business in 1999. Also, to ensure quality services, the bank appointed a field officer and Champion as proposed by the Western Union Financial Services International of New Jersey. The function of the Field Officer will be to ensure that services are rendered at acceptable standards while the latter will responsible for training and retraining of all the staff handling the service countrywide.
In addition to money transfer through WUMT, the bank accomplished the necessary procedures for the establishment of a correspondent banking relationship with Citibank New York. These include securing a permit to operate correspondent banking from the Bank of Tanzania. This arrangement will facilitate the introduction of money transfer through Citibank as well as launching of export/import financing.
The business and organisations of the bank continued to be prime responsibility of the Managing Director who was also Chief Executive Officer under the board's direction. In so doing, he was assisted by Management team.
The quality of the organisation is a reflection of the quality if the people who run it. Like in a modern institution, the bank need to acquire more sophisticated management capabilities, manage more complex organisational structure, information and reporting system as well as undertaking complex product development activities. It is in recognition of the aforesaid that an aggressive strategy to train staff was indeed given more drive.
The management and staff enjoyed a harmonious internal relation an atmosphere which prevailed though the year. This was achieved by, among others, holding meetings between the Management and the leadership of OTTU.
Two meetings of the workers Council we are held to discuss important issues including the proposed budget.
Tanzania Postal Bank achieved very impressive results. The bank managed to turn around its financial position as a result of enhanced cost cutting measures adopted by the management coupled with prudence in investment.
During the year 1998, the total earning of the bank registered an increased by 18.4%. Interest income contributed 72.8% of total income. The composition of source of income for the bank during the year is comprises of 73% interest income, 25%fees and commissions and 2% other income.
Overall expenses for the bank declined.
TPB cannot alienate itself from the notion of globalisation. As the world becomes a global village, TPB is keeping pace with it through international cooperation.
During 1998 the bank continued to subscribe its contribution to membership of the World Savings Bank Institute (WSBI). The aim was and continues to be to take advantage of the institution's network as platform for exchange of information, product manuals, experiences as well as training with other savings banks in the world.
TPB participated in a number of WSBI events. These include:
Participation in the 4th Africa Regional Group Meeting and Seminar on Retail Banking for Private Customers and the Mobilisation of Savings. Both the events took place in Antananarivo Madagascar.
Participation in the preparation of Feasibility study for the East African Postal Banks Regional Training Centre. It was agreed that the centre would limit the fixed costs by making it a co-ordination office. Co-ordination would be in areas of joint sourcing of funds for training and conducting some selected courses jointly to take advantage of the economies of scale.
Signing of an agreement to carry out a study on establishing an East African Postal Banks Payment System.
|FUTURE PROSPECTS AND OUTLOOK
The resolve of the bank is to continue to make tangible progress against the major Corporate goals, which are:
To ensure quality customer services.
To ensure growth in deposits and increased market share.
To increase profitability.
As we move towards the next millennium, the bank will continue with its strategy of reviewing the bank's service delivery technology, operating procedures, which are in line with the ever- changing banking technology and competitive market environment.
|ADDRESSES OF BRANCHES AND OPERATING UNITS
P.O. Box 9300,
Dar es Salaam
P.O. Box 9300,
Dar es Salaam
P.O. Box 1931
P.O. Box 9300,
Dar es Salaam
|Regional operating units
ROU Head, Arusha ROU Head, Moshi
P.O. Box 15100 P.O. Box 854
ROU Head, Dodoma ROU Head Mtwara
P.O. Box 900 P.O. Box 0
ROU Head, Iringa ROU Head Mwanza
P.O. Box 0 P.O. Box 11516
ROU Head, Mbeya ROU Head Songea
P.O. Box 2568 P.O. Box 0
ROU Head, Tanga ROU Head, Dar es Salaam
P.O. Box 129 P.O. Box 9300
Tanga Dar es Salaam
|District operating unit
DOU Head, Ilala
P.O. Box 9300
Dar es Salaam