DAR ES SALAAM: CRDB Bank, one of the country’s leading lenders, has achieved a significant milestone, with its profitability soaring past half a trillion shillings, highlighting robust performance and solid position in the market.
The bank yesterday reported a 30.3 per cent surge in net profit, increasing from 423bn/- in 2023 to 551bn/- in 2024.
This growth was driven by substantial balance sheet expansion and solid revenue growth, underscoring CRDB’s resilience in a dynamic economic landscape.
CEO Abdulmajid Nsekela said that the results reflect the success of the bank’s medium-term strategy (2023-2027), focused on scaling services and fostering financial inclusion across East Africa, particularly for MSMEs, agriculture, youths and women.
“Our medium-term strategy for 2023-2027 focuses on scaling our business and services while fostering an ecosystem of financial inclusion that supports MSMEs, agriculture, youths and women across East Africa. “These results confirm we are on the right track toward achieving these goals,” Mr Nsekela said.
The CEO further said that the strong financial growth is a direct result of the Bank’s commitment to investing in digital solutions, enhancing operational efficiency and expanding regionally.
“This performance reinforces CRDB’s leadership in the Tanzanian financial sector and highlights its expanding influence in East Africa,” he said.
The Group achieved an impressive 25 per cent growth in its balance sheet year-on-year, closing the year to December with total assets of 16.6tri/-.
Loans and advances increased by 23 per cent to 10.4tri/-, while customer deposits ballooned by 24 per cent to 10.9tri/-.
The Bank also contributed 468bn/- in taxes and levies, a 16 per cent rise. With this stellar performance, CRDB Bank continues to solidify its role as a key player in the country’s banking sector, reaffirming its commitment to delivering value to customers, shareholders and the wider economy.
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Additionally, the bank’s focus on innovation is reflected in its increased digital investments, which have contributed significantly to a 14 per cent growth in non Interest Income.
Retail, SME and corporate loans, along with Treasury Bills, contributed to a 27 per cent increase in Interest Income, driving overall profitability.
CRDB’s Chief Financial Officer, Fredrick Nshekanabo, underscored the bank’s strong stability, saying these results highlight the robustness of their operations and financial strength.
“We remain firmly within regulatory limits, with a cost to-income ratio of 45.7 per cent, well below the industry threshold of 55 per cent. “We also maintain a low non-performing loan (NPL) ratio of 2.9 per cent, well within the acceptable limit of 5.0 per cent,” Mr Nshekanabo said.
The bank’s capital ratio remained well above the regulatory limits, reflecting its solid risk management practices and prudent capital allocation strategy.
“We will continue focusing on maintaining a strong balance sheet and delivering value to our stakeholders,” Mr Nshekanabo said.
