Dr Mpango touts successes of banking industry, commends CRDB

20May 2019
The Guardian Reporter
The Guardian
Dr Mpango touts successes of banking industry, commends CRDB

The country’s banking and finance industry has continued to perform well thanks to Bank of Tanzania’s decision to lower threshold which banks can maintain at the central bank as deposits.

Prime Minister Kassim Majaliwa (C) standing alongside top CRDB officials led by Board Chairman, Ally Laay (2nd L) and Managing Director Abdulmajid Nsekela (R). Others are Arusha Regional Commissioner Mrisho Gambo (2nd R) and Tanzania Revenue Authority Commissioner General, Charles Kichere. Photo: courtesy CRDB.

Finance and Economic Planning Minister, Dr Philip Mpango said in Arusha during the weekend when addressing CRDB Bank Plc’s shareholders annual general meeting that as a result of the BoT’s move, banks have more money to lend to the private sector.

“Due to a number of measures taken by the government through Bank of Tanzania, interest rates have reduced by 0.62 percent to 16.38 percent by February this year while banks lending to the private sector grew by 7.3 percent during the same period,” Dr Mpango said.

He commended CRDB management and shareholders for doing very well in the market pointing out that during the first quarter of this year, the bank’s profit grew by 216 percent to 30.7bn/- from 9.7bn/- during a similar period last year.

“Because of its good performance, the price of CRDB Bank’s shares at Dar es Salaam Stock Exchange has increased by 4 percent from 125/- to 130/- each by April this year,” he added while pointing out that the bank’s profit this year is set to increase significantly hence benefitting both its shareholders and Treasury through tax payment.

Speaking at the AGM, CRDB Board Chairman, Ally Laay said the bank which is jointly owned by the public with 43 percent, Treasury with 21 percent and 10 percent owned by pension funds, has continued to perform impressively in the market.

Laay told the shareholders during a pre-AGM seminar that management has been organising such training session in order to equip them with knowledge and skills of how stock market listed companies operate.

“Such knowledge is vital for you as investors so that when you make decisions regarding your investment then they should be correct decisions,” Laay said noting that since 2009 when the bank’s shares were listed at DSE, share prices have been appreciating relatively.

“Because of our good performance in the market, the bank has been paying dividend annually to its shareholders because of profits made from banking business we do,” he added. The Board Chairman further pointed out that the bank has a policy on dividend payment whereby 30 percent of the profit is allocated annually.

“Last year, we paid Treasury 19.5bn/- as divided for the government’s 21 percent shares it owns at CRDB,” Laay noted while promising to pay more this year as the bank’s performance continues to improve.