CRDB profit share up by 7.1 per cent

CRDB Bank Managing Director Dr Charles Kimei speaks during the bank’s stakeholders’ forum in Dar es Salaam yesterday. PHOTO|EMMANUEL HERMAN 

By Samuel Kamndaya

In Summary

At the same time, Tanzania’s largest bank in terms of balance sheet, is expecting to raise capital through rights issue as it embarks on an ambitious national and regional expansion plan.

Dar es Salaam. Investors with CRDB Bank will put on broad smiles this year as the financial entity has raised dividend issuance by 7.1 per cent.

At the same time, Tanzania’s largest bank in terms of balance sheet, is expecting to raise capital through rights issue as it embarks on an ambitious national and regional expansion plan.

It targets a subsidiary in Lubumbashi in the Democratic Republic of Congo (DRC). The bank also has operations in Burundi.

Investors with the Dar es Salaam Stock Exchange (DSE) listed bank will share a total of Sh32.7 billion in dividends from last year’s profit, up from a total of Sh32.7 billion that was shared last year.

The dividend has gone up due to an increase in the bank’s profit during the 2014 calendar year.

CRDB registered a net profit of Sh95.6 billion in 2014 – up from Sh84 billion registered in 2013, according to figures released by managing director, Dr Charles Kimei in Dar es Salaam yesterday.

Currently, CRDB Bank controls a 20 per cent market share in a competitive market of 54 banks and non-banking financial institutions but to meet its expansion plan, the bank needs extra capital.

“Though we are well capitalised at present, we still need to raise an extra capital to sustain our growth and profitability in the future,” Dr Kimei said while presenting the 2014 financials to investors, shareholders and financial analysts.

The bank has resolved to raise additional equity capital through the right issue subsequent to a recommendation made by its board in March.

The rights issue is slated for June, pending approvals from the DSE and the Capital Markets and Securities Authority (CMSA).

Dr Kimei said the rights issues ratio will be five to one—meaning each five shares have the right of one, at a price, normal at discount, to be determined after its annual general meeting early this month.

“The right offer is anticipated to be fully subscribed by a strategic investor(s) who will buy the remaining shares if current shareholders turndown the offer,” Dr Kimei said.