In its latest results, the country’s largest commercial by net assets value, deposits and loan portfolio said it had made a 76.2bn/- pre-tax profit between January and September this year. This means that by December 2018, the bank may rake in a whopping over 100bn/- pre-tax profit a near return to the 118bn/- it made in 2016.
During the third quarter of 2018, the made 32.4bn/- pre-tax profit which represented an impressive 61.9 percent growth, compared to the same period last year. The numbers also denote a 16.2 percent growth, up from 27.867bn/- made in the second quarter of this year.
Chief Executive Officer and Managing Director, Abdulmajid Nsekela attributed the growth to improved operational efficiency within the bank and its delivery channels, supported by marketing push through targeted campaigns, which have been implemented since the beginning of the year.
“We are focusing on accelerating digital transformation, operational efficiency and innovation as the key drivers of growth over the next financial year,” Nsekela said. He adde, “I believe that this will be our main differentiation in the market place because we believe we understand the needs of the people better, and we are ready to save them.”
He further expressed confidence in the bank’s financial performance and has expressed hope the Dar es Salaam Stock Exchange listed financial conglomerate, will continue with the upward trend in the fourth quarter.
The growth in profitability during the quarter is mainly a result of growth in interest income by 8.7 percent, reduced Interest expense by 17.9 percent and growth in fees and commissions by 4.7 percent during the period.
The bank will continue to focus on strategies to contain NPLs including implementation of measures to enhance credit management processes, underwriting, monitoring, collections and recoveries. CRDB recently launched various tailor made products for salaried workers, including salary advance, which targets to offer short-term and emergency loans to employees.
Similarly, the bank has reviewed its personal loan terms and extended the repayment period from five to seven year to give borrowers more flexibility.
The CEO also said his management is currently reviewing a raft of investment proposals, which are planned for implementation to optimize revenues from deposits, forex trading and other streams, including corporate and small and medium-sized enterprises loans.
“We are currently reviewing our revenue optimization strategy and explore untapped opportunities within the current economic setup, especially with the paradigm shift on investment in the public sector,” Nsekela noted.
CRDB Bank has over 234 branches countrywide, 552 ATM machines of which 18 are depository, 12 mobile branches, more than 4,000 banking agents (FahariHuduma) and 900 Point of Sales (POS) terminals.