CRDB Bank has reported the expansion of 35 percent on its Macro, Small and Medium Entreprises (MSMEs) financing, boosting financial inclusion across diverse sectors and segments such as youth, women, agriculture, and sustainability financing.

“This has resulted in a significant customer acquisitions and remarkable increase in the volume of transactions across various electronic platforms,” said Abdulmajid Nsekela, CRDB Bank’s Group Chief Executive Officer and managing director. 

He said growth in transactions on digital channels continues to support its retail push as fees from digital products increased by 11 percent over 2022, with retail deposit balances also growing by 23 percent.

"Our commitment to pioneering solutions that positively impact lives especially those who are at the bottom of the pyramid bolstered our overall financial performance," said Nsekela, noting that CRDB Bank Foundation has showed commitment to community engagement and financial inclusion beyond banking services.

Highlighting the audited financial results for last year at the bank’s headquarters in Dar es Salaam yesterday, Nsekela said the bank demonstrated 21 percent growth in net profit to 423bn/- last year from 351bn/- in 2022.

Furthermore, the bank has proposed dividends of 50/- per share to shareholders for 2023, subject to regulatory approval, bringing the total dividend to 131bn/-, representing a growth of 11 percent year on year. 

He attributed that the Bank's stellar performance was primarily contributed by growth in both funded income & non funded incomes. 

Funded income (interest income) grew by 29 percent in line with loan portfolio growth. 

Net interest margin however, grew at a 19 percent, suppressed by the growth in interest expenses by 58 percent on account of rising interest rates at both domestic and international markets. 

On the other hand, non-funded incomes (Fees and commissions incomes) grew by 11percent year on year, on account of increased usage of digital channels. 

This translated to strengthening of earnings per share by 20 percent to 161.9/-.

Total assets increased by 14 percent to 13.3trn/- last year from 11.6trn/-, maintaining its position as the largest bank in the country.

Loans and advances and customer deposits also recorded substantial growth at 23 percent and 8 percent, reaching 8.5trn/- and 8.9trn/- trillion, respectively. The Bank’s total equity stood at an impressive 1.8trn/- at the end of last year.

Nsekela explained that the bank’s robust performance to the successful execution of its strategic focus on sustainable growth and the development of a resilient business model capable of navigating regional and international challenges.

"We are pleased to announce another year of significant growth, solidifying our position as a key player in the financial sector in the region. The impressive financial results reflect our commitment to delivering value to our stakeholders."

Nsekela emphasized that the seamless execution of the first year of the Bank's new medium-term strategy (2023 – 2027) has been a key catalyst for achieving record-breaking performance. "The meticulous execution of our strategic initiatives has propelled this exceptional growth.”

In 2023, CRDB Bank significantly broadened its horizons by expanding its reach into the Democratic Republic of Congo (DRC) market and venturing into the insurance sector with the establishment of CRDB Insurance Company. These strategic moves further strengthen the bank's foothold not only in Tanzania but also across the broader East and Central Africa region.

Fredrick Nshekanabo, CRDB Bank Group’s CFO noted that the bank's emphasis on a high-quality loan portfolio is reflected in its low Non-Performing Loans, holding steady at 2.8 percent. 

Additionally, he said, the bank has successfully maintained a Cost to Income ratio of 49.5 percent, underscoring its dedication to prudent risk management and ongoing profitability.

Looking ahead, Nshekanabo said CRDB Bank Group is well-positioned for the future, and it remains committed to delivering value to customers, shareholders, and the communities it serves. 

“The Group’s focus on sustainable growth and financial prudence will continue to guide our strategic decisions in the coming years,” he added.