Tanzanian CRDB Bank profit up by 875 percent in five years

CRDB Bank Group’s profit rose by 875 percent during the past five years, thanks to a candid implementation of its five-year strategy.

The strategy, which ran from 2018 to 2022, focused primarily on enhancing its operational efficiency, driving financial inclusion through digital transformation, and building the Bank of the Future.

This was revealed in Dar es Salaam yesterday by the CRDB Bank’s managing director, Mr Abdulmajid Nsekela when he briefed reporters on the lender’s audited financial results for 2022.

According to the results, CRDB Bank’s profit after tax grew by 31 percent to Sh351.4 billion in 2022, from Sh268.2 billion in 2021.

“This represents a profit growth of 875 percent from Sh36.2 billion recorded in 2017, the year before the implementation of the previous medium-term strategy of 2018 – 2022 started,” he said.

He said the bank’s transformation initiatives have also yielded positive results, with its balance sheet growing by 97.2 percent to Sh11.6 trillion in 2022 from Sh5.9 trillion in 2017.

The bank’s chief financial officer, Mr Frederick Nshekanabo, said the credit reforms implemented over the past five years have aided a 138 percent growth of the loan book which reached Sh6.9 trillion in 2022, from Sh2.9 trillion in 2017.

The ratio of Non-Performing Loans (NPLs) to total gross loans declined from 13 percent in 2017 to a healthy 2.8 percent in 2022.

Customer deposits surged by 91 percent to reach Sh8.2 trillion in 2022 from Sh4.3 trillion in 2017 while liquidity asset ratio reached 27 percent to surpass the regulatory limit of 20 percent.

CRDB Bank registered double-digit growth rates in several other parameters, including its core capital ratio and operating income among others.

“Our transformation efforts have enabled us to maintain our position as a market leader in Tanzania and drive growth while creating value for our shareholders.

Return on Equity (ROE) increased from 16.4 percent in 2017 to 26 percent, while the cost-to-income ratio improved from 66.7 percent to 49.8 percent,” he added.

In line with its aspiration of becoming a ‘digital first bank,’ CRDB Bank has played a significant role in driving financial inclusion, investing in digital channels SimBanking, CRDB Wakala, Internet Banking, and SimAccount to reach the underserved segments of the population.

As a result, the Bank’s customers have grown nearly three-fold from 1.5 million in 2018 to more than 3.4 million.