CRDB Bank’s net profit grew by 21 per cent last year to demonstrate another strong financial performance of one of the leading financial institutions in the country.
Unaudited financial results released yesterday indicated that profit after tax increased to 424bn/- in 2023 up from 353bn/- in 2022.
The full-year results showed that total assets saw a notable 14 per cent increase from 11.6tri/- to 13tri/-.
Customer deposits surged by 8.0 per cent to 8.9tri/-, while net loans experienced a remarkable 23 per cent growth to 8.5tri/-.
CRDB Group CEO and Managing Director, Abdulmajid Nsekela 2023 was another year of significant growth, solidifying their position as a key player in the financial sector.
“The impressive financial results reflect our commitment to delivering value to our stakeholders,” said Mr Nsekela in a statement.
He said the seamless execution of the bank’s new medium-term strategy (2023 – 2027) has been a key catalyst for achieving record-breaking performance.
“The meticulous execution of our strategic initiatives has propelled exceptional growth, evidenced by a remarkable 35 per cent expansion in loans to MSMEs, and notable advancements in inclusive financing across diverse sectors and
segments such as youth, women, agriculture, and sustainability financing,” the Group CEO said.
CRDB’s strategic investments in digital transformation are yielding significant returns, evident in a remarkable 11 per cent growth in Non-Funded Income (NFI), driven by increased usage of digital channels and innovative insurance offerings.
“Our commitment to pioneering solutions that positively impact lives especially those who are at the bottom of the pyramid bolstered our overall financial performance,” Mr Nsekela said.
CRDB Chief Financial Officer, Fredrick Nshekanabo, highlighted the bank’s financial health, saying they also managed to contain the cost to income ratio at 49.5 per cent amid escalating operating costs occasioned by deteriorations in the global macroeconomic environment.
“Our focus on maintaining a well-diversified and high-quality loan portfolio is evident in maintaining our non-performing loans that remained at 2.8 per cent,” Mr Nshekanabo said.
“This reinforces the bank’s commitment to prudent risk management and sustained profitability.”
The bank’s impressive performance translated into a robust 26.7 per cent return on equity, accompanied by a commendable 14 per cent increase in its share price, reaching 460/- per share at the end of last December.
In the past year, CRDB significantly broadened its horizons by extending its reach into new territories, such as the Democratic Republic of Congo (DRC) and venturing into the insurance sector with the establishment of CRDB Insurance Company.
These strategic moves further strengthen the bank’s foothold not only in Tanzania but also across the broader East Africa region.
Additionally, the introduction of the CRDB Bank Foundation underscores the lender’s commitment to expanding its community engagement and empowerment initiatives, reflecting its dedication towards financial inclusion, and making a positive impact beyond traditional banking services.
CRDB is well-positioned for the future, and we remain committed to delivering value to our customers, shareholders, and the communities we serve,” Mr Nsekela said.
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