During the financial year 1999/2000, the Gross income of the Bank amounted to TZS 66.2 billion, compared with TZS 32.4 billion recorded during the previous year, which is an increase of 104.5 percent. Income from foreign operations increased by 41.3 percent, from TZS 20.8 billion realized in 1998/99 to TZS 29.4 billion realized in 1999/2000. The increase in income on foreign operations was mainly attributed to the high level of investible funds and improved market rates of return. Domestic income increased by 217.2 percent from TZS 11.6 billion earned during 1998/99 to TZS 36.8 billion recorded during 1999/2000. The increase in income on domestic operations was mainly attributed to TZS 12.1 billion charged on underdeemed matured union Government Stocks and interest arrears which were restructured. Additional TZS12.9 billion was earned as interest on new restructured Stocks.
During the period under review, the Bank’s operating expenses increased by 27.0 percent from TZS 30.7 billion, from TZS 34.1 billion recorded in previous year to TZS 39.0 billion as of 30th June 2000. The increase in expenses was mainly attributed to the increased borrowing from the International monetary Fund (IMF), which led to an increase in charges in IMF drawings. Furthermore, in accordance with the Bank of Tanzania monetary policy, the Bank has to mop-up excess liquidity in the economy by issuing 91 days liquidity papers. As a result, a total of TZS 5.4 billion was incurred in 1999/2000 as interest on liquidity papers when compared with TZS 3.3 billion of 1998/1999. Finally, administrative expenses increased by TZS 4.7 billion as a result of increased cost of supportive services such as expenses relating to the implementation of the new Central Banking System (CBS).
The outcome of the Bank’s operations during the year under review was, a net profit of TZS 23.9 billion, an increase of TZS 22.5 billion, from TZS 1.6 billion recorded in 1999/99. Out of the profit earned, TZS 5.9 billion was appropriated to General Reserve , TZS 1.2 billion to Staff Housing Fund, TZS 10.0 billion to Reserve for Projects and TZS 6.7 billion was paid to the Government as dividend.