Net Profit at CRDB Bank rises

CRDB Bank, listed on the Dar es Salaam Stock Exchange (DSE), has reported a 31% increase in net profit for the calendar year 2022, leading to an expected rise in dividends for investors.

The bank registered a record net profit of Sh353 billion in 2022, compared to Sh268 billion in 2021. This growth was driven by an increase in non-funded income, which rose 13% year-on-year to Sh400 billion. The bank’s managing director, Abdulmajid Nsekela, credited the increase to the growth of digital channels and an increase in transaction volumes.

CRDB Bank has also improved the quality of its loans, with the Non-Performing Loans (NPLs) to total gross loans ratio at 2.8% in December 2022, down from 3.3% in 2021. The bank has also successfully reduced its cost-to-income ratio to 49.4% in 2022, from 55.30% in 2021, in line with the Bank of Tanzania’s mandate for commercial banks to keep their cost-to-income ratio at not more than 55%.

The lender’s five-year strategic plan for 2018 to 2022, which ended in December 2022, showed impressive results. Over the past five years, the bank’s net profit rose from Sh64 billion to the current Sh353 billion.

In addition, CRDB Bank has finalized its entry into the Democratic Republic of Congo market, which is expected to increase its visibility and position as a facilitator of business activities across Tanzania’s borders. The bank reported having secured over Sh1 trillion in funds from international partners over the past five years, to increase its capability to serve market needs.