CRDB Bank has reported an impressive performance after its pre-tax profit in quarter one jumped up by over 36 per cent, thanks to increase in interest and similar income.
The bank posted a strong profit before tax (PAT) that went up to 62bn/- in Q1 compared to 46bn/- recorded the same period last year.
CRDB’s Managing Director and Group CEO, Abdulmajid Nsekela, attributed the upsurge in operating income and profit to the increase in interest and similar income.
“We are off to a strong start in [this year] with impressive earnings for the first quarter,” Mr Nsekela said in statement yesterday adding: “These exceptional results highlight our bank’s unparalleled and coordinated effort to assist customers to achieve their financial goals through our innovative products and services.”
Non-interest income grew by 4.9 per cent to 69bn/- compared to 66bn/- recorded last year, while net interest income increased by 9.6 per cent to 184bn/-from 168bn/- recorded during the same period last year.
The lender’s profitability was also underpinned by a drop of non-performing loans (NPL) to 4.1per cent from 4.4per cent last year. “[NPLs drop] reflecting a well-maintained loan quality portfolio by the giant,” the CEO said.
Also other key indicators namely customer deposits, net loans, and total assets continued to record growth in Q1. Total assets rose by 9.7per cent from 6.6tri/- to 7.2tri/-, customer deposits were up by 3.4 per cent from 5.1tri/- to 5.3tri/- whilst total loans grew by 13.7 per cent from 3.5tri/- to 4.0tri/- to cap the good outing by the top lender.
Digital banking continued to gain traction after the launch of an enhanced SimBanking platform that enables customers to open a bank account wherever they are, cost-free.
Mr Nsekela said, “Similarly, digital banking transactions have increased significantly during the quarter due to improved adoption by customers and new services migrated to our digital channels.”
Due to the bank’s high performance and increased stability, the basic earnings per share for the Q1 improved to 16/40 from 12/40 reported for the same period of the previous year.
Additionally, the return on equity increased to 16.7 per cent from 14.4 per cent, while the return on assets for the period under review was 3.5 per cent, indicating a solid financial performance in Q1.
“The performance is balanced across all key indicators and shows that the strategies we are implementing are moving the Group in the right direction,” Mr Nsekela said.