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We’re the most profitable bank in Tanzania: CRDB

CRDB Bank Plc managing director Abdulmajid Nsekela speaks during the bank’s investors’ forum in Dar es Salaam on Tuesday. PHOTO | THE CITIZEN CORRESPONDENT

What you need to know:

  • CRDB said on Tuesday that after recording a record profit during the first quarter of the 2019 calendar year, it was now focusing on cementing the achievement to maintain its position as the most profitable financial entity in Tanzania.
  • CRDB’s share price went up to Sh130 on Tuesday, April 30, from Sh125 on Monday, which pushed the bank’s market capitalization from Sh326.48 billion to Sh339.54 billion.

Dar es Salaam. CRDB Bank said on Tuesday that after recording a record profit during the first quarter of the 2019 calendar year, it was now focusing on cementing the achievement to maintain its position as the most profitable financial entity in Tanzania.

The bank announced a stellar performance on Tuesday, with its 2019 first quarter operating profit growing to a record Sh43.81 billion, higher than Sh15.9 billion during the first quarter of 2018.

At group level, CRDB’s net profit for the first quarter of 2019 was Sh30.699 billion, being a 215.5 per cent improvement from Sh9.729 billion that was registered during the first quarter of 2018.

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The Sh30.699 billion is almost half of the bank’s profit for the entire 2018 calendar year.

“We have claimed market leadership in terms of profitability. We will maintain this tempo. We have a strong balance sheet,” CRDB Bank Plc finance director Frederick Nshekinabo told an investors’ forum in Dar es Salaam.

He said 2019 looks brighter for the bank, with loans and deposit growth projected at eight to 12 per cent while cost of risk and return on assets at between 2.5 and four per cent in 2019.

Chief executive officer Abdulmajid Nsekela said CRDB’s 2019 operations will be anchored on moving from expensive deposits to cheaper ones, particularly focusing on enhancing its focus on Small and Medium Enterprises (SMEs) while also paying a close eye on mega projects of national interest.

“We will reach them by maximising our channels, including accelerating agency banking. On funding SMEs, we are now looking at supporting those who want to establish factories that will manufacture alternative bags after the government announced a ban on plastic bags come June 1, 2019,” he said.

Meanwhile, investors responded positively to CRDB’s ballooned profit on Tuesday, sending the bank’s share price up by four per cent at the Dar es Salaam Stock Exchange (DSE).

CRDB’s share price went up to Sh130 on Tuesday, April 30, from Sh125 on Monday pushing the bank’s market capitalisation from Sh326.48 billion to Sh339.54 billion.

On Tuesday, CRDB counter traded 1,046,200 shares in 3 deals, collecting a total turnover of Sh135.77 million.

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