CRDB Bank Maintains Market Lead with a 76% jump in profits to TZS 92 Billion

DAR ES SALAAAM, Tanzania - Oct. 31, 2019 - PRLog -- Tanzania's largest Commercial bank, CRDB Bank Plc has reported a 76% jump in after tax profits for the nine months of 2019.  The Bank recorded a TZS 92 billion profit, compared to TZS 52 billion reported during the same period last year.

Group CEO & Managing Director Abdulmajid Nsekela says the remarkable numbers signal a positive impact of various reform initiatives undertaken at the start of the year to enhance efficiency and optimise business performance.

"Our strategy to improve operational efficiency so as to take full advantage of the evolving business environment and opportunities continues to pay off," says Nsekela.

"We have seen positive movements of key indicators, which points to both good liquidity in the market and an obviously attractive business offering for our customers," he adds.

The CEO says CRDB Bank's renewed focus on enhancing customer experience, coupled with improved staff productivity are among the key drivers of growth; inspired by the Bank's new operating model.

As at 30^th September 2019, the Group's customer deposits grew by 7% to TZS 4.6 trillion, up from TZS 4.4 trillion reported in Q3 of 2018.

Nsekela attributes this increase to 'aggressive sales, improved customer services as a result of improvement on operational efficiency has attracted more customer deposits'.

"We believe that financial inclusion is a way of building sustainable business because it opens up new opportunities previously untapped," he opines.

"We closed with a total of 11,612 agents (CRDB Wakala), adding 7,260 new agents from the same period last year. We continued to bring our services closer to our customers and have seen increase in transactions taking place on these alternative channels," explains Bank Chief Finance Officer, Frederick Nshekanabo.

There was also a strong top line growth with the Bank's net interest income surging 22% to TZS 390 billion compared to TZS 320 billion reported during the period last year.  The Bank's growth in interest income was largely driven by growth in loans and advances to customers and contribution from investment in government securities.

Nshekanabo notes that "Bank loans and advances grew by TZS 170 billion, representing a 6% jump year on year, driven by personal loans and SME".

The group's strategy to contain the level of Non performing loans (NPL) yielded positive results, with NPL ratio improving from 8.9% to 7.5% and net impairment charge on loans and advances declined by 9.6% to 75 billion.

Non – interest income also grew 13% to TZS 187 billion (up from 166 billion reported in the same period last year), mainly driven by forex, agency banking and letters of credit. http://www.crdbbank.com