MWE Correspondent
Tanzania’s banking sector has posted record-breaking profits in 2025, with the industry collectively earning Sh2.47 trillion, a 14.7 percent increase from Sh2.16 trillion in 2024. The growth reflects strong performance across both lending and fee-based businesses, alongside improved operational efficiency.
Financial disclosures released last week show that interest income, mainly from loans to businesses and individuals, grew 11.7 percent to Sh4.71 trillion, up from Sh4.22 trillion in 2024. Meanwhile, non-interest income, which includes fees, commissions, and foreign exchange gains, rose 13.6 percent to Sh2.5 trillion, representing an increase of Sh299.72 billion over the previous year.
Industry observers noted that the two largest banks in Tanzania led the profit surge, accounting for roughly 60 percent of total banking sector earnings. One bank saw net profit rise 16 percent to Sh749.77 billion, while the other reported a 31 percent jump to Sh724.61 billion from Sh551.49 billion in 2024. Their performance underscores their dominant positions and effective management strategies in the sector.
Other banks also posted impressive results. The third largest lender recorded a 26 percent increase in net profit, driven by higher lending volumes and expanded revenue from service charges. Several mid-sized banks posted double-digit growth, demonstrating resilience across the industry and broad-based recovery.
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Analysts attribute the strong 2025 performance to sustained demand for credit, improved non-interest revenue streams, and operational efficiency gains. Growth in digital financial services has also helped banks diversify income sources beyond traditional lending, providing a buffer against market fluctuations.
Despite the impressive results, sector leaders acknowledge ongoing challenges, including global economic uncertainties, competition, and evolving regulatory requirements. They emphasize the need for continued investment in technology, innovation, and customer-centric products to maintain growth momentum and support financial inclusion initiatives.
Looking forward, Tanzania’s banking sector is expected to continue its expansion trajectory, with a focus on supporting small and medium-sized enterprises (SMEs), fostering inclusive growth, and driving national development objectives.
The 2025 results highlight the resilience of Tanzania’s banking sector and its capacity to adapt to changing market conditions while maintaining profitability. Experts suggest that these gains will strengthen the sector’s ability to finance economic growth, support innovation, and promote broader access to financial services across the country.
