CRDB’s gross profit surge by 36pc to 62bn/- in Q1 of 2021

03May 2021
By Guardian Reporter
Dar es Salaam
The Guardian
CRDB’s gross profit surge by 36pc to 62bn/- in Q1 of 2021

CRDB Bank Plc’s profit before tax continued an upward surge by 36.3 percent to 62bn/- during the first quarter of this year compared to 46bn/- realised during a corresponding period last year.

CRDB Bank Plc managing director and CEO, Abdulmajid Nsekela speaks at a past event in Dar es Salaam. Photo courtesy of CRDB.

The Dar es Salaam based bank which remains one of the most profitable in the market, also witnessed its customer deposits, net loans and total assets continue to record growth. The quarterly results show that total assets rose by 9.7 percent from 6.6trn/- to 7.2trn/-; customer deposits grew by 3.4 percent from 5.1trn/- to 5.3trn/- whilst total loans increased by 13.7 percent from 3.5trn/-to 4trn/- during the period.

“We are off to a strong start in 2021 with impressive earnings for the first quarter; 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,” said CRDB Bank’s Managing Director and Group CEO, Abdulmajid Nsekela adding that non-performing loans also dropped to 4.1 percent from 4.4 percent.

Nsekela explained that the upsurge in operating income was due to the increase in interest and similar income. Non-interest income grew by 4.9 percent to 69bn/- from 66bn/- recorded in 2020, whilst net interest income increased by 9.6 percent to 184bn/- against 168bn/- during the same period, he noted.

The CRDB chief further noted that digital banking, however, continued to gain traction after the launch of an enhanced SimBanking platform that enables customers to open an account from wherever they are, cost-free.

“Similarly, digital banking transactions have increased significantly during the quarter due to improved adoption by customers and new services migrated to our digital channels,” he explained while noting that due to the bank’s high performance and increased stability, the basic earnings per share for the first quarter improved to 16.4/- from 12.4/-.

In addition, return on equity increased to 16.7 percent from 14.4 percent while return on assets for the period under review was 3.5m percent, indicating a solid financial performance in the period. “The performance is balanced across all key indicators and shows that the strategies we are implementing are moving the group in the right direction,” Nsekela alerted.

Listed on Dar es Salaam Stock exchange, CRDB Bank is the first bank in Tanzania to be rated amongst the top ten stable and safer to invest African banks by the world’s most respected rating agency, Moody`s Investors Services.

Moody`s rated CRDB Bank with a “B1 stable outlook” recently which is the highest rating to have been acquired by banks or financial institutions in Sub Saharan Africa. UN Green Climate Fund accredited CRDB Bank in November 2019.

The bank which has a subsidiary in Burundi serves more than three million customers with a large footprint of 246 branches, 19,350 agents or CRDB Wakala, over 550 ATMs and over 1,900 merchants.

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