CRDB pays record 170bn/- dividend in 30yrs

ARUSHA: CRDB Bank Plc has approved a record dividend of 170bn/- for the 2024, marking its 30th anniversary with the highest shareholder payout in the lender’s history.

Shareholders endorsed the proposal at the lender’s Annual General Meeting in Arusha over the weekend, agreeing to a final dividend of 65/- per share, a 30 per cent increase from the previous year.

The move follows a 30 per cent rise in profit after tax to 551bn/-, with earnings per share reaching 211/50. CRDB Chairman Dr Ally Laay said the dividend reflected both the strength of the bank’s operating model and the group’s long-term commitment to value creation.

“Celebrating 30 years of operation, this dividend is a signal of the bank’s resilience and a gesture to shareholders who have stayed with us through cycles of reform and expansion,” Dr Laay said.

He said the payout was made possible by steady revenue growth, disciplined cost control and a maturing regional strategy.

CRDB, Tanzania’s largest financial institutions by assets, reported a 25.3 per cent increase in total assets to 16.7tri/- in 2024.

Its loan portfolio grew by 22.7 per cent to 10.4tri/-, driven by increased lending to corporate clients, SMEs and micro borrowers through digital platforms.

CRDB Group Chief Executive Officer Abdulmajid Nsekela said the bank’s performance reflected the outcome of its strategic focus on inclusion, innovation and regional expansion.

“As we celebrate three decades of empowering communities and building futures, our 2024 performance affirms that we are just getting started.

“The journey ahead is one of deeper inclusion, digital transformation and regional impact,” Mr Nsekela told the AGM.

CRDB had improved its cost-to-income ratio to 45.7 per cent, from 49.8 per cent a year earlier, supported by investment in enterprise architecture and cost containment measures.

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Additionally, the share of non-performing loans remained low at 2.9 per cent.

The Group CEO said credit risk was being managed through tighter underwriting, digital monitoring tools and better client segmentation. Subsidiaries accounted for 6.0 per cent of total group profit after tax.

CRDB Bank Burundi posted a profit of 40.3bn/-, while CRDB Insurance, launched in 2023, delivered a 343m/- profit in its first full year of operations.

CRDB Bank DRC, which opened in 2022, remained in a growth phase and was expected to break even ahead of its original timeline, Mr Nsekela said.

Looking ahead, Nsekela said CRDB would maintain its focus on digital transformation, customer acquisition and climate-aligned financing.

He said future growth would rely on deepening financial access in underserved markets and building operational resilience across its subsidiaries.

Tanzania’s Ambassador to Burundi, Gelasius Byakanwa, said CRDB’s performance and consistent dividend record were signs of prudent governance and financial integrity.

He said the bank’s expansion in the region had made it a model for locally anchored financial institutions.