During the year, mortgage market grew by TZS 76 billion. The total mortgage portfolio balances amongst banks stood at TZS 421.10 billion as at the end of the year of 2018 representing 4,996 properties compared to TZS 344.84 billion outstanding balance for financing 4,174 properties that was reported for the previous year. This signifies an annual increase of 22.04% in Mortgage Finance market while a number of mortgages increased by 18.76%. The above data indicates that mortgage market as percentage of Gross Domestic Product (GDP) increased marginally to 0.34% from 0.33% recorded in 2017. This ratio is one of the lowest in the East African region.



In 2018, there was a decline in profitability arising from various reasons related to the business environment. The Company recorded a profit before tax of TZS 1.09 billion (2017: TZS 1.27 billion), a decrease of 13.7% from previous year. The decrease was mainly attributed to slowdown in lending due to decline in borrowing appetite by Primary Mortgage Lenders (PML).

During the year, interest income increased from TZS 11.0 billion in the prior year to TZS 14.69 billion, an increase of 32.9%. However, the interest expenses also increased from TZS 6.9 billion in the prior year to TZS 10.1 billion, an increase of 46.4%. The huge increase in interest expenses was due to additional borrowings from World Bank and TMRC Corporate bond issued during the year as another source of funding.

Operating expenses increased by 13.7% from TZS 3.4 billion in 2017 to TZS 3.8 billion in 2018 mainly as a result of increase in the number of staff to support TMRC strategy.  

During the year TMRC balance sheet size grew from TZS 102.8 billion recorded in 2017 to TZS 136.3 billion, an increase of 33% while total loans recorded an increase of 25.5% to TZS 103.0 billion from TZS 82.1 billion.