CRDB Bank cashes out Sh51.7 billion in dividend to Tanzania Government

Dodoma. Tanzania’s Minister for Investment and Planning, Prof Kitila Mkumbo, on behalf of the government, has received a highest dividend ever given by a financial firm in the country worth around Sh51.7 billion as a result of the government’s investment in CRDB Bank.

The lucrative earnings issuance were made by the CRDB Bank’s Board Chairman, Dr Ally Laay at the event that took place at Hazina Kambarage venue in the country’s capital of Dodoma.

Speaking at the handover ceremony, Prof Mkumbo hailed the bank for cashing out such a huge dividend, equivalent to an increase of 12.8 percent of the dividend given by CRDB Bank in the year 2022 that stood at Sh45.8 billion.

This dramatic rise was attributed mainly to the bank’s stellar financial performance recorded in the year ended in 2023.

“This significant rise in the dividend issuance by CRDB Bank sends a message to the government that the bank continues to be stable with its set crucial business strategies and that keeps instilling confidence in the Tanzanians and investors of their commitment to serve the community with the best offerings,” said Prof Mkumbo.

Explaining about how the government is always proud of the gigantic strides made by the top-tier lender in its both domestic and cross-border expansion crusades, the minister once again commended CRDB Bank for opening its subsidiaries in the Democratic Republic of Congo (DRC), CRDB Bank Insurance Co. Ltd and CRDB Bank Foundation with the third providing an avenue for youth and women entrepreneurs thrive economically through its flagship program dubbed IMBEJU.

He further pledged to the bank and other key development partners that were present at the event that the government will continue to improve and set friendlier and sustainable business climate in the finance sector and more others to attract as many investors as possible from within and beyond the borders.

For his part, Acting Deputy Permanent Secretary of the Ministry, (Management and Economy), Mr Japhet Justine lauded the CRDB Bank’s board and management as well for steering the firm towards an impressive financial position and surged dividend issuance records.

He also praised the Bank of Tanzania (BoT) for its strong regulation of the sector which produced attractive performance of multiple financial entities and delivery of innovative and high-end financial services to the citizens.

The Board chairman, Dr Laay revealed that the dished out dividend is a result of the bank’s profit after tax of Sh423 billion posted in the fiscal year 2022.

“During the Annual General Meeting held at the Arusha International Convention Centre (AICC) in May, this year, the CRDB Bank’s shareholders agreed to approve of the dividend valued at Sh50 per share which is an equivalent to an increase of 11 percent, totaling this year’s dividend of about Sh103.6 billion which is an equivalent to 31.8 percent of the net profit earned,” he told the press.

Speaking about the Bank’s historic milestone, CRDB Bank Group CEO and Managing Director, Mr Abdulmajid Nsekela said that the growth in the bank shareholders’ equity was strongly underlined by an effective implementation of the bank’s four-year business plan (2023-2027).

Apart from the dividend, the bank also paid out a total of Sh403.2 billion as tax. Not only the government enjoyed the dividend through the Danida Investment Fund but also did other few state-owned entities such as PSSSF, ZSSF, NSSF, NHIF, Local Government Loans Board, WETCU, Umoja Unit Trust Scheme as well as all Mbinga, Mufindi, Shinyanga, Chunya and Rungwe municipalities.

A total of Sh27.4 billion dividend through the Denmark Investment Fund (DIF) will be directed to improve health services in the country including health infrastructure and access to drugs and medical equipment.

The sitting government under President Samia has already increased healthcare centres from 8,549 in 2021 to 9,693 in 2024.The funds are going to help such motives reflecting the country’s drive towards achieving universal quality health coverage.

About CRDB Bank

CRDB Bank is one of the leading banks in the East African region, offering services to small, medium and large customers including services for private customers, treasury services, insurance services, business loans, agriculture and empowerment for small entrepreneurs.

CRDB Bank is the first bank in Tanzania to be recognized by the international research company, Moody’s Investors Service as one of the 10 most stable and safe banks in Africa for investment.

Moody’s has given CRDB Bank a solidity grade of B1, which is the highest grade available for banks and financial institutions in the Sahara desert region. CRDB Bank has been recognized by the United Nations Green Climate Fund since 2019 and has also been recognized as the best bank in Tanzania by Global Finance magazine for 2023.

CRDB Bank has become an important business link in the countries of Tanzania, Burundi and DRC by serving more than 4 million customers and through a wide network of 268 branches, more than 34,000 CRDB Bank agents, more than 550 ATMs, more than 2,800 POS and Call Centre that provides 24/7 service.