CRDB pre-tax profit surges by 77pc to 64bn/- for 2018

15Apr 2019
The Guardian Reporter
The Guardian
CRDB pre-tax profit surges by 77pc to 64bn/- for 2018

DEFYING challenging market conditions, CRDB Bank Plc has seen its pre-tax profits skyrocket by 77 percent to 64.1bn/- thanks to investment in digital banking technology and reduction of non-performing loans.

Speaking in Dar es Salaam last Friday, CRDB Group’s Managing Director, Abdulmajid Nsekela the impressive performance has also been made possible because of improved market conditions and business environment.

Nsekela said last year, the bank managed to grow customer deposits by 7.8 percent to reach 4.66trn/- from 4.33trn/- in 2017; total assets increased by 2.3 percent to 6trn/- while interest income grew by 4.6 percent to reach 586.3bn/.

He further noted that net interest income also grew by 8.1 percent to 442.8bn/-; operating profit increased by 85 percent to 99.1bn/- and loans grew by 8 percent to 3.1trn/-.

“2018 was a successful year for CRDB Bank because our revenue and profit were driven by improved net interest income and non-interest income. We generated positive operating leverage by significantly lowering our NPL ratios,” Nsekela told journalists.

“We grew our loans and deposits, and expanded to new markets via digital services through SimBanking, SIMAccount, FahariHuduma Wakala and franchising some of our retail outlets,” he added.

Nsekela explained that during the year, the bank’s net interest income grew by a significant 33.1bn/- which is an 8.1 percent increase due to improved interest income and a reduction in the interest expenses.

“We have committed to providing financial services in a manner that promotes responsible borrowing among our customers, this is why we are aggressively promoting financial literacy among customers to improve loans uptake and repayments,” Nsekela said.

In the year under review, the bank’s NPLs decreased by a significant 4.1 to 8.5 percent, compared to 13.6 percent recorded in 2017. “We have lowered the non-performing loans to an average of 8 percent and we want to take it further down to 5 percent in the next financial year. This will be arrived through providing flexible repayment terms, as well as increasing monitoring of the number of loans we issue,” Nsekela noted.

Privatised in 1996 as a loss making state owned Cooperative and Rural Development Bank, CRDB has moved to become one of the country’s largest commercial banks with three subsidiaries of CRDB Bank Burundi, CRDB Bank Insurance Brokers Limited and CRDB Bank Microfinance Services Limited.  In June 2009, the country’s largest was listed on the Dar es Salaam Stock Exchange.