AfricaPress-Tanzania: CRDB Bank Plc posted 236bn/- pre-tax profit last year, which is a 35-per cent rise from 175bn/- reported in 2019. Improvement in performance affirms the Group’s potential, which continues manifesting amidst raging competition.
Over the past two years, CRDB Bank’s performance has implemented strategic reforms, which continues changing the Group’s fortunes to the delight of its shareholders.
Group CEO and Managing Director Abdulmajid Nsekela attributed the performance to ongoing transformation that had unlocked the bank’s potential.
“Despite Covid-19 disruption, we delivered a strong balance sheet underlined by strong growth in both our net interest and nonfunded incomes. We recovered in areas that had exhibited weaknesses in the course of the year, thanks to an adaptive strategy and timely interventions,” said Mr Nsekela.
The Group’s income improved significantly despite a slowdown in the economy because of the Covid-19 pandemic.
The Group operating income registered 10.4 per cent year on year growth at 854bn/- from 774bn/- reported in the previous year.
Non-interest income registered a 13-per cent year on year growth to 284bn/- from 252bn/- reported in 2019. Customer deposits grew marginally to 5.4tri/-, representing a 4-per cent upward movement from 5.2tri/- reported at the end of 2019.
“The disruption of business dented our customers’ pockets as many reprioritised their expenditure in the wake of the Covid-19 pandemic,” explained Mr Nsekela.
The Group’s profitability was further bolstered by its two subsidiaries, which contributed 7.0 per cent of the overall PAT.
CRDB Bank Burundi SA performed particularly well, leveraging stable macros and aggressive sales despite the local challenges in Burundi.
The Burundi subsidiary profit grew by 75 per cent from 6.4bn/- to 11.2bn/-. The insurance subsidiary, CRDB Insurance Broker Limited posted a 3.6bn/- in profit, representing a 140-per cent year on year growth.
“Our strategy to support customers during the pandemic played a major role because it allowed us to realign our plans and adapt to changing situations,” the Group CEO explained.
Group loans and advances grew by 16 per cent to 3.9tri/-, compared to 3.4tri/- reported in 2019.
“We kept a healthy loan book, maintaining a good asset quality despite challenges our customers faced. Our non-performing loans (NPL) closed at 4.2 per cent from 5.5 per cent reported in 2019,” said Mr Fredrick Nshekanabo, Chief Financial Officer (CFO).
“We continue monitoring and working closely with our customers in sectors affected by the pandemic,” Mr Nshekanabo noted.
Group assets grew by 9 per cent to 7.2tri/-, maintaining the Group’s leading position as the largest financial entity by asset base.
As at the end of the 2019 fiscal year, the Group had a combined asset base of 6.6tri/-, which translates into a 23-per cent market share.
The results came even as the Group accelerates its plans to spread its wings to the region to take advantage of the growing regional trade and compete favourably.
