Africa-Press – Tanzania. CRDB Bank at the weekend handed the Treasury a dummy cheque for 45.8bn/- in combined dividends from government equity in the leading commercial bank and from shares of a number of public institutions.
Finance and Planning minister Dr Mwigulu Nchemba said at the ceremony that the sum is the highest ever received from the financial institution, reflecting more than ten percent of net profit.
The government is the principal shareholder with a 21 percent share block while other public corporate entities hold a 15 percent share block, giving the public sector a combined 36 per cent minority shareholding in the bank.
The dividend was made possible by the bank’s impressive financial performance for the past calendar year, he said, flanked by permanent secretary Dr Natu El Maamry Mwamba and executives of public entities holding shares in the bank.
He said the dividend will be spent on implementation of various projects the government has prioritized for the next financial year, asserting that the bank’s mid- term strategic plan for 2018/2022 “successfully enabled the bank to increase its profitability by 875 percent.
” During the first quarter of this year the bank had recorded a 90bn/- net profit, he stated, projecting even higher dividends next year.
CRDB Bank was spreading its wings to the Democratic Republic of Congo (DRC), set up an insurance subsidiary named the CRDB Insurance Co. Ltd and the CRDB Bank Foundation that seeks to foster economic inclusion,
he further noted.
He emphasized that the sixth phase government is focused on strengthening a friendly and sustainable business environment in the financial sector and elsewhere, as this is vital to attract investors.
He referred to government plans for financial sector uplift and vast reduction of bank nonperforming loans (NPLs), while appealing for banks to direct loans to sustainable businesses. Dr Ally Laay, the CRDB Group board chairman, handed the dummy cheque, saying it reflected the bank’s 351bn/- net profit for the calendar year.
At the bank’s annual general meeting shareholders unanimously approved a 45/- dividend per share, 25 percent higher from the previous dividend in 2021, translating into 117.5bn/- total dividends.
CRDB Group CEO Abdulmajid Nsekela said the growth of shareholder investment value was tied to achievements the bank has recorded over the past halfdecade, where the bank paid the Treasury 1.1trn/- in taxes.
The bank created more than 600,000 jobs during the period, used 1.3trn/- in remuneration and allowances; entered upwards of 1,000 contracts paying out 625bn/- and issued 14bn/- grants to support social projects, he added.
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