THE PEOPLE’S BANK OF ZANZIBAR LTD

OUR VISION “… to be a leading provider of innovative and high quality financial services to our retail and corporate customers in Tanzania and beyond”

OUR MISSION “…. to provide banking solution to our retail and corporate customers. PBZ will do so by providing innovative and high quality products and services at competitive and affordable cost through its network in Tanzania and beyond”

BRIEF HISTORY One of the oldest banks in Tanzania The only bank maintaining ownership status and original name Established in 1966 as a quasi central bank for Zanzibar government Became fully fledged commercial bank in 2001 It has both propositions – Islamic and Conventional

BRANCH NETWORK Branch network covering all Zanzibar 14 operating branches and five service centers 4 operating branches on the Mainland 2 more branches to be opened (Mtwara)

Alternative delivery channels ATM network connected Umoja Switch Internet banking Mobile banking Account statements SMS alerts Utility payments Mobile top up Transfer - account to account, account to wallet, wallet to account Agency banking (preparations underway) MasterCard (underway)

ISLAMIC BANKING Why Islamic banking Tanzania’s population is about 44.3 million (2012 Census) Only about 25% have access to financial services especially banking Until 2008 the only banking system prevailing was conventional Many did not bank because of their religious faith They took risk of keeping money’s at home

Islamic Banking operations Operations started in 2011 Five operating branches One more branch to be opened soon Two service centers in Pemba All branches are connected to Umoja Switch ATM network

Products offered under Islamic Banking Fund mobilization Al Wadiah Savings accounts Al Mudharaba Savings account Qardh (Current account) Al Mudharaba General Investment account (equivalent to Time deposit in the conventional environment)

Products offered under Islamic Banking cont’d Fund utilization Murabaha financing (cost plus) Bai Muajjal financing Working capital Murabaha Ijara financing (lease purchase) Education financing House rent financing Mortgage financing Salam sale contracts Istisna’ contracts

Services offered at Islamic Banking Treasury products Sell/Purchase of foreign currencies (all major currencies) Money Transfer Services (worldwide) SWIFT TISS (local) Western Union WorldRemit Xpress Money (in progress)

Services offered at Islamic Banking cont’d Trade Finance products Letters of credits Bank Guarantees Bid Bond Performance Bond Advance Performance Bonds Retention Guarantee Custom Bonds Documents for collection

Performance in numbers (TZS billions) Item 2011 2012 2013 2014 2015 Number of accounts 8,477 12,927 33,633 47,476 57,529 Deposit 5.101 20.380 44.700 79.36 111.94 Financing 0.152 6.221 13.890 36.52 70.69

Unique attributes of PBZ Islamic Banking? Fast growing bank Quality assets (NPL below industry average at 1.55%) Innovative products – going live with technology Services tailored to suit customers’ needs Immediate account opening

THANK YOU