Net interest income drives CRDB Bank profit increase
What you need to know:
- The lender’s first quarter net interest income rose to Sh192 billion, representing a 9.7 percent increase from the previous year
Dar es Salaam. CRDB Bank’s gross profit rose by three percent to Sh133 billion during the first quarter of 2023, driven by a rise in net interest income.
The lender’s first quarter net interest income rose to Sh192 billion, representing a 9.7 percent increase from the previous year.
Non-interest income rose to Sh106 billion, being a three percent rise from the Sh103 billion recorded in the first quarter of 2022.
This, the bank says, was driven by increased transactions on digital channels including SimBanking, Internet banking, and CRDB Wakalas. Commenting on the figures, the CRDB Bank Group CEO, Mr Abdulmajid Nsekela, said the performance was a good start in the execution of the lender’s new medium-term strategy which runs from 2023 to 2027.
He said the Bank intends to maintain this momentum by investing in growth opportunities within the regional investment landscape and leveraging its capabilities to invest in key markets and sectors to potentially bolster this growth.
Mr Nsekela acknowledged CRDB Bank's ongoing investment in technology, focusing on digitizing customer journeys and upgrading its core banking system to offer a superior customer experience characterized by hyper-personalization and relevance.
According to CRDB Bank’s chief financial officer, Mr Frederick Nshekanabo, the bank's automation strategy has helped to strengthen its loan portfolio and quality, with Non-Performing Loans (NPL) standing at 2.8 percent.
Gross loans and advances stood at Sh7.2 trillion, reflecting a 4.6 percent increase compared to Sh6.9 trillion recorded on December 31, 2022.
Total assets grew by 9.3 percent from Sh11.69 trillion in December 2022 to Sh11.96 trillion in March 2023 while customer deposits stood at Sh8.3 trillion compared to Sh8.2 trillion in December 2022 as the bank continues to strengthen its balance sheet.
Looking forward, Mr Nsekela exuded confidence in the bank's future, building on the impressive strides made over the last five years, believing that the new medium-term strategy presents a unique opportunity to transform the business in a manner that could benefit the Bank's customers and shareholders and revolutionise economies.
