CRDB Bank to expand footprint in Africa following success in Burundi
CRDB headquarter in Dar es Salaam. PHOTO | COURTESY
What you need to know:
- Laay emphasised the significant contributions made by some of the bank's subsidiaries to the group's overall performance, particularly CRDB Bank Burundi S.A., which saw a remarkable 30.7 percent year-on-year growth in profits after tax (PAT), reaching Sh30.2 billion.
Arusha. CRDB Bank, buoyed by the profitable performance of its Burundi subsidiary, CRDB Bank Burundi S.A., has announced plans to extend its services to Zambia, the Comoros, and Uganda.
Addressing shareholders at the CRDB Annual Shareholders Meeting in Arusha, the chairperson of CRDB board of directors, Ally Laay, highlighted the company's achievements and challenges in 2023.
Laay emphasised the significant contributions made by some of the bank's subsidiaries to the group's overall performance, particularly CRDB Bank Burundi S.A., which saw a remarkable 30.7 percent year-on-year growth in profits after tax (PAT), reaching Sh30.2 billion.
"The Burundi subsidiary's impressive performance over the past decade signals the opportune moment for the group to expand its presence in the eastern and southern African regions," stated Laay, outlining the expansion plan that will commence with Zambia, followed by the Comoros, Uganda, and later Rwanda.
CRDB’ managing director and chief executive officer, Abdulmajid Nsekela, expressed satisfaction with the progress made in implementing the group's new medium-term strategy, highlighting the bank's significant financial performance and capitalisation on market opportunities.
The CRDB Group recorded a PAT of Sh422.8 billion in the financial year ending 2023, marking a notable 20.3 percent year-on-year growth from the previous year's Sh351.4 billion.
The achievement represents the highest profit ever recorded in CRDB's history, underscoring the group's potential and resilience.
In recognition of this milestone, the bank has increased dividend payments per share from Sh45 to Sh50, with a total disbursement of Sh130.6 billion to shareholders.
However, amidst the success, challenges persist, notably with CRDB's newly established subsidiaries, Insurance Company Limited and CRDB DR Congo, which recorded losses of Sh1.7 billion and Sh4.2 billion respectively.
Despite this, the total subsidiary contribution to the group's profit after tax stood at 6 percent, indicating promising prospects for profitability.
Laay reassured shareholders of the group's commitment to sustaining its growth trajectory by continuing to invest in new opportunities, underlining CRDB's unwavering dedication to delivering value and driving expansion across the African continent
