backgroundHistory of Dcb commercialbank Plc.

1

DCB Commercial Bank Plc,formerly known as Dar es SalaamCommunity Bank Public LimitedCompany is a private microfinancebank dedicated to financing povertyalleviation programmes, aimed atuplifting the standard of living of themajority of low income people in Dares Salaam.

The Bank is a result of a call madeby His Excellency Mr. BenjaminWilliam Mkapa, the third Phasepresident of the United Republic ofTanzania when inaugurating the 10thBanks and financial institutions inDecember 1995 .

The President repeated this callduring his tour of various parts of Dares Salaam in 1999 when he wasconfronted by repeated cries fromMicro Small Entrepreneurs wherelack of capital was cited as the majorobstacle faced by microentrepreneurs in their effort toimprove their businesses.

The President specifically directedthe Dar es Salaam City Commission(now Dar es Salaam City Council) tofacilitate the establishment of aCommunity Bank in Dar es Salaam.The Commission contracted a

consulting company-Commodities,Finance & Consulting Ltd (CFC) toprovide the services of projectmanagement and carry a feasibilitystudy to establish viability of project.The Report was finalized and

submitted to the City Commission on10th, January 2000 and revealed thatthe project was viable and profitableand strongly recommended for theestablishment of a privateCommunity Bank in Dar es Salaam.

This week, the DCB Commercial BankPlc marks ten years of successfuloperations in Dar es Salaam Region. Sinceopened its door to the public, DCB iscommitted to its vision and mission ofreaching out low, Middle earners andCorporate, especially entrepreneurs byproviding them with appropriate financialservices to expand their businesses andimprove their welfare. The targetedclients are people who were consideredun-bankable and credit unworthy by mostcommercial banks, who by now, throughDCB have proved to be bankable andcreditworthy.

The bank have extended goodperformance for the past ten years inmost of its parameters and paid dividendsto its shareholders for consecutive six

years since 2006. Following increase of itscapital to TZS. 16 Billion, the bank havedecided to increase operations bychanging its license from ‘CommunityBank’ to ‘Fully fledged Commercial Bank’.The name have changed also from ‘Dar esSalaam Community Bank Plc’ to ‘DCB

Commercial Bank Plc’.All these achievement could not be

possible without the active support of theGovernment, esteemed customers, theshareholders, business associates,Employers of various public and privatecompanies, the pension funds, thegeneral public to mention just a few whoplayed their part in the Bank’sdevelopment.

The Management and staff wish toextend their sincere gratitude to all ofthem for their continued support andcooperation.

We are committed to maintaining andeven enhancing these developments inten years to come. It is our duty to serveand serve well the community of Tanzaniaunder new name of DCB Commercial BankPlc and liberate them from poverty. Weowe it to ourselves, to the nation, to theshareholders and indeed to God.

A True Liberator

Amb. Paul

Rupia

MD’s Statement

Edmund P.

Mkwawa

Living to its vision andmission to date, the bankstarted operations to the publicten years ago with initial capitalof TZS. 1.1 Billion. The LocalAuthorities of City Council andDar es Salaam MunicipalCouncil of Ilala, Kinondoni andTemeke were the initialsubscribers and promoters ofthe bank.

As at 30th December 2011,the Bank’s paid up capital hasgrown to 8.1 billion as a resultsof sales of right issue, IPO andlisting at Dar es Salaam StockExchange in year 2008.

We are proud to see DCB thefirst bank in Tanzania to list itsshare at stock market. Its shareprice increased from TZS. 275(listing price) on 16 September2008 to TZS. 620 as at 30thAugust 2012. Moreover, DCBemerged the best-performingAfrican stocks of 2011, byemerging the fifth among thetop ten best performing stocksin Africa and the first performerin the stock market in EastAfrica.

We also appeal to allshareholders of the bank toparticipate fully in sale of rightissue exercise by buying sharesto enable the bank raise it’scapital.

GREATEROUTREACH TO

SMALL & MEDIUM

ENTREPRENEURS

IN TANZANIA

The 3rd Phase President of United Republic of Tanzania, Hon. Benjamin William Mkapa

visiting DCB Arnautoglu branch located at Arnautoglu Building - Mnazi Mmoja 2002 dur-

ing official launch of the bank, Second from right is Mr. Edmund P. Mkwawa, the Manag-

ing Director and 1st left is Mr. Yusuf Makamba the former Dar es Salaam Regional

Commissioner.

Miaka Kumi ya Ukombozi. Imara Zaidi, Mbele Daima

chairman’sStatement

DCB Commercial Bank Plc

5th OctOber

2012

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Dcb commercialbank PlcVision,

Mission,

Values &

PrinCiPal

aCtiVities

Our VISION

The vision of DCB Commercial Bank Plc is to bethe leading micro-finance bank in Tanzania.

Our MISSION

The Mission of DCB Commercial Bank Plc is tocontribute to the economic and socialdevelopment in Tanzania for Individual, Micro,Small and Medium Enterprises, and Corporate bydeveloping specialized financial products andservices and marketing these through an efficientand sustainable branch network where thecustomer is treated with promptness andresponsiveness. DCB aims at building cultures;structures and operating systems that cansupport sustainable services delivery to asignificant and growing number of economicallyactive Micro, Small and Medium Enterprises(SMEs) and Corporate in Tanzania.

VALueS

• Professionalism• Integrity• Creativity & Innovations• Team Work• Unit of Purpose• Respect• Effective Corporate Governance

PrINcIPAL ActIVItIeS

• Mobilizing financial resources fromindividuals, institutions and developmentpartners for financing the informal sector inorder to support the government's endeavorsin poverty alleviation.

• Providing an enabling environment for self-employment for the unemployed populationin Tanzania.

• Providing commercial services and support tothe target group at truly unsubsidized 'full costrecovery and a profit margin' rates in order toenable the bank to consolidate itself andmaximize returns to its shareholders.

• Providing lending services

DCB Commercial Bank Plccommenced operations to the public on15th April 2002 with one branch,Arnautoglu at Mnazi Mmoja ground. Itwas registered in 2001 andincorporated in Tanzania under theCompanies Ordinance, and licensed bythe Bank of Tanzania under the Bankingand Financial Institutions Act, 1991, as aregional unit commercial bank.

Commencementof Business

2

The total number of shareholders at year end 2011 was 4,627 (2010:5,041 shareholders). The shares of the Bank are held as follows:

Shareholding Structure as of December 2011

Name

Dar es Salaam City Council

Ilala Municipal Council

Kinondoni Municipal Council

Temeke Municipal Council

Unit Trust of Tanzania

Umoja Unit Trust Scheme

Other 4,621 members (2010: 5,036)

Total share capital

No. of shares

2,870,628

2,671,188

2,626,060

2,396,536

3,088,148

3,308,870

15,431,806

32,393,236

Value of shares TZS

717,657,000

667,797,000

656,515,000

599,134,000

772,037,000

827,217,500

3,857,951,500

8,098,309,000

% of holdings

8.86%

8.25%

8.11%

7.40%

9.53%

10.21%

47.64%

100%

The CEO of Unit Trust of Tanzania (UTT) Dr. Hamis Kibola, receiving a dummy cheque worthy TZS 140.8 million for the

year 2010 dividend from Dar es Salaam Regional Administrative Secretary, Ms Theresia Mmbando.

Percentage of Share Holding

DCB Commercial Bank Plc

The 3rd phase President of the United

Republic of Tanzania, His Excellency

Benjamin William Mkapa (Sitted) during

official launch of DCB Bank at Arnautoglu

branch, Mnazi Mmoja in 2002.

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The Bank is proud to announce good

achievements made in ten years.

Deposits and Number of clientsIn December 2002 we had a total

of only 12,141 savings clients andloan clients who saved TZS. 1.7billion. As of 31st December 2011 wehad more than 102,518 clients havesaved TZS. 81.1 billion.

LendingDCB has contributed to the

development of livelihoods of peopleof Dar es Salaam by offering loans tothe tune of TZS. 222.5 billion as atDecember 2011 through Salaried

loan scheme, SMEs loans, SolidarityGroup Lending and Micro Housingloan when compared to TZS. 999Million disbursed in 2002.

Solidarity Group Lending (SGL)Based on the mission of the bank,

our Solidarity Group Lending Productcontinues to be given priority. For 10years TZS. 31.07 billion was disbursedto 107,160 beneficiaries under thisscheme in all three Municipalities ofDar es Salaam region as shown inTable below. On average thesedisbursements were TZS. 289,995.55per person. 83,585 clients (78%)women and 23,575 (12%) men have

benefited from small loans, whichprovide them with working capital fortheir small business, which finallyenable them to meet their social andeconomic needs. Total of 2,143groups were established in 2011 ascompared to 316 groups establishedin 2005. The groups have beenestablished in all three Municipalitiesof Ilala, Temeke and Kinondoni.

bank Performance

Having successfully operated inDar es Salaam for 10 years, we areproud to announce that now thecapital of the Bank has grown to TZS.16 billion which prompted furtherexpansion of banking operations. TheBoard of Directors thus decided to

change the name of the Bank from‘Dar es Salaam Community Bank Plc’

to ‘DCB Commercial Bank Plc’

following change of its corporateimage from Community Bank toCommercial Bank. Its license haschanged too, now the Bank will carry

out Banking operation Country wide.However, the vision and mission ofDCB will remain the same.Advantages of operating as fullyfledged Commercial Bank are asfollows:-• The Bank will open window to

corporate clients thus increasedeposits base

• Increase outreach & revenue byopening branches across thecountry.

• Improve image of the bank andincrease dividends to itsshareholders.

Official launch of DCB shares at Dar es Salaam Stock Exchange (DSE), 2008.

Municipal

Ilala

Kinondoni

Temeke

Total

Solidarity Group Loan Disbursement by Municipality as of

31st December 2011

No. of Centres

709

897

537

2,143

No. of customer

35464

44839

26857

107,160

TOTAL

Loan Amount (TZS.)

8,530,795,300

13,409,277,850

9,135,850,351

31,075,923,501

Miaka Kumi ya Ukombozi. Imara Zaidi, Mbele Daima

3DCB Commercial Bank Plc

5th OctOber

2012

ProfitsSince its establishment, DCB has

registered an impeccable track recordof profit, paying its shareholdersdividend for six consecutive yearssince 2006. The profit has grown fromloss making, TZS. 535.19 million in2002 to a profit before tax of TZS 4.4billion in 2011, breaking up evenwithin three years of its operation in2005.

cHANge Of NAMe &buSINeSS LIceNSe

TZS 4.4bnProfit before tax of

in 2011; paid dividendto its share holdersfor six consecutive years since 2006

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Bank’s productsThe bank has increased its

products range to match withdemand of its clients and the use oftechnology.

We offer a number of savingaccounts including Personal savingaccount, Young saver account forchildren, student account, SACCO’Saccount, Joint account, Fixed/Timedeposits, current accounts,Club/Association/Society account,company account, Call Account,special Saving accounts for clients ingroups, Foreign Currency operations,Money transfer services of WesternUnion, super Agent of M-pesa, ATMservices of UmojaSwitch, Loanproducts of SGL, Super SGL, Salariedloan, Housing Microfinance loan &MSE/SME/Corporate loans, SMSBanking that uses mobile telephonesand Investment products.

Contribution to National economyEmployment Creation:

As at 31st December 2011 theBank had 155 employees, 89 (57.4%)being males and 66 (42.6%) females.During the same period employeesattended various courses inside andoutside the country.

Revenue to the Government:

Up to 31st December 2011, thebank had paid corporate tax ofTZS.4.98 Billion and withholding tax ofTZS. 1,229 Million. The Bank alsoremitted TZS. 1,613.59 Million fromemployees’ salary as Pay as You Earn(PAYE) and a Skills Development Levy(SDL) of TZS. 537.07 Milllion.Contribution to social security fundsamounted to TZS. 1,911.43 Million.

Social Economic Contribution.

The bank carried out analysis onSocial and Economic Impact for theloans offered to its clients in Dar esSalaam region and Tanzania at large.

Analysis made showed that loansgranted between year 2002 and 2005were used for the following economicactivities:

78% of customers i.e. 46,506 usedtheir loans for building, renovation ofhouses and purchase of plots of landand other related activities. • 16% of customers i.e. 9,540 used

their loans for payment of schoolfees at various academic levels.

• 6% of customers i.e. 3,577 usedtheir loans to fund small businessprojects thus increasing theirincome. Among these 52 used theloans to drill water holes fordomestic use and incomegeneration by selling the water.DCB is proud of such contribution

to the community.

Bank’s OutreachCurrently the bank has five

branches conveniently located. Thefirst branch is Arnauotglu located atthe Arnautoglu building Mnazi Mmojawithin Ilala Municipality. The secondis Magomeni Branch located at DCBHouse Magomeni Mwembechai inKinondoni Municipality. The thirdbranch is located at Temeke MunicipalCouncil offices, opposite Temekeprimary Court, the junction ofTemeke/Everest road. The fourth andfifth branches are Tabata and Ukongabranches located at Tataba oldDampo area and Banana area in IlalaMunicipality respectively.

One more branch of Chanika isplanned to be opened this year 2012at Chanika area. The Bank will havesix branches in 2012. All branches arenetworked and connected with onsiteATM under the UmojaSwitch.

Testimonials from customers — DCB Commercial Bank Plc has

given me a loan which has led to an

expansion of my business. Now I have

managed to pay my children’s school

fees and currently processing for

another loan so that I can establish

another business. DCB is really a True

Liberator. – Vivian Shirima

— As a DCB Commercial Bank Plc

customer, my business has grown up

and known to a good number of

people due to my participation in

trade fairs with a support by DCB

Bank. I have managed to control my

economy and pay my children’s school

fees on time. I greatly thank the Bank.

– Isack Ibrahim

Ways forward• Following change of its license

from Regional Unit Bank into a fullyfledged Commercial Bank, DCB isrequired by Bank of Tanzania toraise its capital as condition ofallowing the Bank to change itsstatus.

• To implement this condition, on its10th AGM the shareholders of theBank resolved to raise capitalthrough sell of share to existingshareholders through Rights Issueon a ration of 1 to 1 for TZS. 380being 40% discount from thecurrent market price of TZS. 640.

• Sale of Right issue exercise will beofficiated by His Excellency Hon.Benjamin William Mkapa, the thirdphase president of the UnitedRepublic of Tanzania on 05th

October 2012 at Mnazi Mmojagrounds.

God bless Africa, God bless Tanzania,

God bless DCB Commercial Bank PLC.

Relocation Of Head Office and

Magomeni branch.

The bank’s head office and

Magomeni branch were shifted from

Arnautoglu Building Mnazi Mmoja and

Hotel Travertine to DCB House located

at Magomeni Mwembe Chai on 14th

January 2011. DCB House was officially

opened by the Prime Minister of

United Republic of Tanzania Hon.

Mizengo Kayanza Peter Pinda on 14th

January 2011.

Corporate Social ResponsibilitySince 2002 the bank contributed

more than TZS 36 Million to varioussocial programmes includingconsoling the affected members ofthe society from calamities inMbagala and Gongolamboto bombblast, secondary school desk and

chairs donations, Mosquito nets, bedsand mattresses to Dar es SalaamMunicipal Hospitals and MilitaryHospital of Lugalo, Unguja and Pemba,donation of school buildings andeducational materials and uniformsfor pupils affected by floods in Dar esSalaam in December, 2011.

DCB House the Head quarter Building and Magomeni Branch at Magomeni Mwem-

bechai, Morogoro Road in Dar es Salaam.

The Managing Director of DCB Mr. Edmund P. Mkwawa (left) handing over donation

of 100 school desks & Chairs to the then Ilala Distric Commissioner Mr. Leonidas

Gama. The School desks and chairs were donated to Kivule Secondary School in Ilala

Municipal.

Prime Minister of the United Republic of Tanzania Hon. Mizengo Kayanza Peter Pinda

(MP) officiating opening of DCB House on 14th January, 2011.

Miaka Kumi ya Ukombozi. Imara Zaidi, Mbele Daima

4 DCB Commercial Bank Plc

5th OctOber 2012

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