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CRDB earns 24bn/- profit, proposes 15 pc dividend
2006-06-26 08:59:01
By A Correspondent, Arusha
The CRDB Bank has announced here that last year it earned a pre-tax profit of 24.4bn/- against 14.3bn/- for 2004 as well as proposing a dividend of 15 per cent or 15/- per share.
Last year’s earnings represent a rise of 71 per cent.
The Chairman of the bank’s board of directors, Martin Mmari, told the bank’s 11th shareholders’ Annual General Meeting (AGM) held at the Arusha International Conference Centre (AICC) that the net profit for 2005 transferred to revenue reserves increased by 100 per cent from 9.4 bn/- to 18.7bn/-.
’’As in the year 2004,’’ Mmari told shareholders, ’’the increase in income resulted from increased volumes in loans and overdrafts, treasury bills investments and fee-based transactions.’’
The chairman also told shareholders that deposits at the same period grew by 54 per cent, from 424bn/ at the end of 2004 to 654bn/- last year.
He described the growth as a result of the fast growth of the bank’s customer base translated into fast customer base expansion.
He also asked the shareholders who were impressed by the bank’s superb performance to endorse a dividend of 15 per cent or 15/- per share of 1,854,990,000/- as total appropriation to dividends.
’’In 2005 the income from lending also went up to 18bn/- compared to 11bn/- in 2004,’’ the chairman said, adding the bank was contributing dearly in the agriculture sector.
According to him, the agriculture sector alone, made up 22 per cent of the bank’s loan portfolio hence dominating the bank’s lending.
Mmari said the manufacturing sector came second absorbing 19 per cent of the bank’s lending and the treasury operations ’’contributed heavily’’ to the bank’s income.
The interest income from placements, investments in treasury bills and bonds contributed 38 per cent of the income.
Earlier, the Bank’s Managing Director, Dr Charles Kimei told shareholders that the bank had increased its investments into all profit making areas.
’’The market forces compelled us to invest also into training for our staff and improve services at all our branches countrywide,’’ he said.
He said the bank managed to install 10 Automated Teller Machines (ATMs) all of which were geared to give customers competitive services.
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