CRDB generates 133bn/- profit in Q1

CRDB Bank has posted a solid financial performance after profit increased by 3.1 per cent in quarter one driven by a strong net interest.

The bank said in a statement on Monday that it posted a gross profit of 133bn/- representing a year-on-year increase of 3.1 per cent.

This growth was driven by a strong net interest income of 192bn/-, a 9.7 per cent increase from the previous year.

CRDB Group CEO Abdulmajid Nsekela said the performance demonstrates the lender’s continued strength and a good momentum in implementing its new medium-term strategy 2023-2027.

“The bank intends to maintain this momentum by investing in growth opportunities within the regional investment landscape and leveraging its capabilities to invest in key markets and sectors to potentially bolster this growth,” Mr Nsekela said.

The bank’s non-interest income for the quarter was 106bn/-, up 3.0 per cent from 103bn/- recorded in a similar quarter last year thanks to increased transactions on digital channels including SimBanking, Internet banking, and CRDB agents.

Mr Nsekela acknowledged the bank’s ongoing investment in technology, focusing on digitising customer journeys and upgrading its core banking system to offer a superior customer experience characterised by hyper-personalisation and relevance.

“We are confident in the bank’s future, building on the impressive strides made over the last five years,” the CEO said.

He said he believed that the new medium-term strategy presents a unique opportunity to transform the business in a manner that could benefit the bank’s customers and shareholders and revolutionise economies.

CRDB’s Chief Financial Officer Frederick Nshekanabo said the non-performing loans (NPL) stand at 2.8 per cent, below the industry standard of 5.0 per cent.

“The bank’s credit automation strategy has helped to strengthen its loan portfolio and quality,” Mr Nshekanabo said.

The gross loans and advances were at 7.2tri/-, reflecting a 4.6 per cent increase compared to 6.9tri/- on record at the end of last year.

The bank said is committed to providing a superior customer experience characterised by hyper-personalisation and relevance while investing heavily in technology to digitise customer journeys and upgrade its core banking system to achieve this goal.

“CRDB has focused on strengthening its balance sheet to continue supporting its customers through market cycles,” the CFO said.

The bank’s total assets grew by 9.3 per cent from 11.69tri/- last December to 11.96tri/- in March, and customer deposits stood at 8.3tri/-, an increase of 1.3 per cent compared to 8.2tri/- last December.

In recognition of the bank’s excellence in SME financing, CRDB was awarded the Best Bank in SME in Tanzania by Global Finance during the quarter.

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