CRDB Q1 profit hits 206bn/-, leads market

DAR ES SALAAM: CRDB Bank Plc’s strengthening market leadership is increasingly translating into broader economic impact, with its position as the undisputed leader in the country’s banking sector now reinforced by a strong first quarter performance in this year.

The lender reported a profit after tax of 206bn/-, representing an 18.9 per cent year-on-year growth, reflecting sustained profitability alongside expanding operational scale.

CRDB Bank, with this milestone, leads across all key financial performance indicators, including profitability, assets, deposits and efficiency, marking a decisive moment in the successful delivery of its Evolve Strategy (2023–2027). The Bank’s Group Chief Executive Officer and Managing Director, Abdulmajid Nsekela, said yesterday that the results represent a defining moment in the institution’s journey.

“We are no longer chasing leadership, we have achieved it,” Mr Nsekela said. He added: “We have not only delivered strong growth, but we have now taken leadership across all key performance indicators, including profitability, making us the undisputed leader in our market”.

He said the 18.9 per cent growth in profit is not incidental, it was the outcome of deliberate choices: Investing in productive sectors, scaling digital platforms and maintaining strong discipline in risk and capital management, all while supporting inclusive economic growth.

The Bank’s leadership position is underpinned by a strong and expanding balance sheet. Total assets grew to 23.9tri/-, while customer deposits increased by 9.0 per cent to 16.3tri/-, reflecting sustained confidence from both retail and corporate customers.

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“This solid funding base supported continued lending growth, with net loans and advances reaching 14.7tri/-, largely directed towards key sectors driving economic activity,” the CEO said. At the same time, CRDB Bank maintained a prudent approach to risk, with the non-performing loan ratio improving to 2.85 per cent.

“This continued improvement highlights the Bank’s ability to expand lending while maintaining strong asset quality, reinforcing a business model that balances growth with resilience in a dynamic operating environment,” Mr Nsekela said. Revenue performance remained strong and well diversified.

Net interest income rose significantly to 388.8bn/-, supported by increased lending volumes and improved asset yields. He said in parallel, the Bank continued to strengthen its noninterest income streams, driven by growing transaction volumes across digital channels, agency banking and payments platforms.

Operating income increased to 297.6bn/- from 254.2bn/- in the same period last year, underscoring how digital transformation is now fully embedded within the lender’s core operations and financial performance, rather than existing as a standalone initiative.

The CRDB Chief said despite continued strategic investments in technology, including enhancements to the new core banking system, as well as regional expansion through the establishment of a Representative Office in Dubai, the Bank maintained strong cost discipline.

The cost-to-income ratio remained stable at 41.6 per cent, reflecting the institution’s ability to scale efficiently while maintaining tight operational control. The Bank’s Chairperson, Prof Neema Mori said that efficiency continues to play a central role in sustaining the Bank’s leadership position.

“Our leadership is not only defined by growth, but by how efficiently we grow. Maintaining a cost-to-income ratio while expanding our operations demonstrates the strength and resilience of our operating model,” she said.

The bank’s strong financial performance translated into superior returns, with Return on Equity (RoE) reaching 28.0 per cent, while shareholders’ funds increased to 3.06tri/-.

These results further reinforce CRDB Bank’s position as a high-performing institution with the capacity to support future growth and deliver long-term value. Looking ahead, CRDB Bank is focused on sustaining and extending its leadership position by accelerating growth in high-impact sectors, scaling its digital ecosystem and deepening its regional footprint.