CRDB shareholders await record Sh58 billion in dividends

Dar es Salaam. Shareholders for CRDB Bank Plc must be putting their fingers crossed in anticipation that nothing unusual happens until they share a record dividend of Sh57.546 billion.

The amount, contained in the bank’s annual report for the year 2021, stems from a record net profit of Sh268.161 billion which the bank recorded during the year ending December 31, 2021.

The Sh57.546 billion translates into a dividend per share of Sh36 which the bank, through its board chairman, Dr Ally Hussein Laay (pictured), will present to the 27th Annual General Meeting (AGM) that is scheduled to take place in Arusha from Friday to Saturday this week.

Last year, CRDB Bank Plc shareholders shared a total of Sh44.4 billion in total dividend. The amount translated into a dividend per share of Sh22 which was paid from a net profit of Sh165.186 billion that the bank registered in 2019.

In the annual report, Dr Laay says the board arrived at the proposed dividend after a thorough analysis of existing realties and the need for further investment into the business.

“The board remains alert to the reality and needs to balance the optimisation of shareholder value and re-investment of funds in the business for future growth….Consequently, it has recommended a dividend of Sh36 per share for the year ended 31 December 2021, subject to approval by shareholders during the AGM,” Dr Laay says.

Chief executive officer, Abdulmajid Nsekela says after the global Covid-19 pandemic, the bank embarked on proactive approaches to capture the markets with innovative solutions that resulted in sustained growth in both top and bottom lines.

“As a Group, we witnessed rebounded business from our corporate clients who had been impacted by the disruption in the global supply chains….We also benefitted from the reversal of the restrictions on movements across the borders with our trading partners such as Kenya, Uganda, and Rwanda around the issue of Covid-19…,” he says.

A consensus among East African Community (EAC) partner states on a coordinated approach in responding to the Covid-19 pandemic, along with the strengthening of bilateral relations between Tanzania and Kenya, Mr Nsekela says, provided the much- needed thrust to boost trade between the two countries.

“As a result, many of our customers, especially those along the agriculture value chain, obtained relief with a rise in demand for agricultural goods such as grains and horticultural products on the Kenyan side. Our Group was on hand to provide the necessary financial products and support…,” he says, adding that the lender also invested hugely in improving its digital platforms to serve a majority of its customers.

According to the bank’s chief financial officer, Mr Frederick Nshekanabo, the Group achieved remarkable growth in 2021, underlined by strong balance sheet growth and robust income pipelines.