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CRDB bullish about 2019 prospects

CRDB Bank is bullish about 2019 prospects after posting a 78 per cent rise in net profit last year.

The Managing Director Abdulmajid Nsekela said they were optimistic that they would improve on the results of last year when they posted a net profit of 64bn/- up from 36bn/- in 2017.

The positive results from performance of last year have legitimately raised hopes of doing better this year as they would leverage on use of alternative channels, especially digital banking platform.

“The bank’s future looks bright…very promising,” Mr Nsekela told journalists over the weekend when presenting financial results for 2018. The bank deposits also rose by 8.0 per cent to 4.7bn/- from 4.3bn/-.

The bank assets grew by 2.3 per cent to 6.03tri/- from 5.9tri/- in 2017. He said they expect to post another good performance in this year’s first quarter which will give direction of the rest of the quarters.

“The first quarter results are very promising so is the future of the bank. We’ll post good results,” Mr Nsekela said. The bank share plummeted to 125/- last Friday from 150/- of January.

The good performance is expected to uplift the share prices as shareholders anticipate handsome dividend for this year. The bank offered 5/- in 2017.

According to Mr Nsekela, CRBD is now the third largest bank in the East African Community member states in terms of balance sheet. During the year, the lender in the country in terms of balance sheet, managed to lower non-performing loans to 8.2 per cent from 12.6 per cent.

CRDB’s NPLs were the lowest in comparison of the industrial average of over 11.0 per cent, though slightly high from the central bank benchmark of 5.0 per cent.

He said they focus on using further digitalised financial services through banking agencies and simbanking especially in the areas where there are no brick and mortar branches.

He said the Fahari Huduma agents have soared to over 5500 from 3500 units while the numbers of corporates using internet banking climbed to 87,000 meaning a few customers are using branches services.

The bank is using its microfinance services unit to reach micro, small and medium enterprises (MSMEs) where last year it dished out some 440bn/- accounting for 14 per cent of total loan book.

“We are anticipating this year more loans will be extended to small, medium enterprises after restructuring our lending procedures and lowering interest,” he said.

ZANZIBAR has recorded considerably high revenue collection in ...

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Author: ABDUEL ELINAZA

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