CRDB Bank proposes 11 percent dividend growth as profit rises

Dar es Salaam. Shareholders for CRDB Bank Plc must be keeping their fingers crossed as the lender proposes an improvement of 11 percent in dividends.

The rise in dividend is due to a 21 percent improvement in CRDB Bank’s Prof After Tax (PAT), according to the audited financial results.

With a double-digit growth in both funded and non-funded income streams, the audited financial results put the bank’s PAT at Sh432 billion in 2023, up from Sh351 billion in 2022.

“As such, the Bank has announced a proposed dividend of Sh50 per share to shareholders for the fiscal year 2023, bringing the total dividend to Sh131 billion, representing a growth of 11 percent year on year,” the bank said in a statement yesterday.

The proposed dividend is subject to approvals, including by the Annual General Meeting (AGM).

CRDB Bank’s net funded income grew by 19 percent last year while non-funded income rose by 11 percent, propelled by increased usage of digital channels.

Total Assets grew by 14 percent from Sh11.6 trillion to Sh13.3 trillion.

Loans and Advances and Customer Deposits grew by 23 percent and eight percent, reaching Sh8.5 trillion and Sh8.9 trillion respectively. The Bank’s total equity stood at an impressive Sh1.8 trillion.

"These results solidify 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," said the CRDB Bank’s CEO, Mr Abdulmajid Nsekela.

He attributed the growth to what he termed as ‘the seamless execution of the first year of the Bank's new medium-term strategy (2023 – 2027)’.

CRDB Bank loans to Micro, Small and Medium Entrepreneurs (MSMEs) grew by 35 percent as the lender deepens its roots in the retail segment, focusing primarily on youth, women, agriculture, and sustainability financing.

“This has resulted in a significant customer acquisition and remarkable increase in the volume of transactions across various electronic platforms,” he said.

In 2023, CRDB Bank opened its Democratic Republic of Congo (DRC) subsidiary. It also ventured into the insurance sector with the establishment of CRDB Insurance Company.

CRDB Bank managed to contain the ratio of Non-Performing Loans to total gross loans of only 2.8 percent while its Cost to Income Ratio stood at 49.5 percent, well within the regulatory threshold, according to CRDB bank’s Chief Finance Officer, Mr Fredrick Nshekanabo.