Dar es Salaam. CRDB Bank Group’s profit rose by 875 percent during the past five years, thanks to a the implementation of its five-year money-making strategy.
The high profit strategy, which ran from 2018 to 2022, focused primarily on enhancing its operational efficiency, increasing customers and driving financial inclusion through digital transformation, and building the Bank of the Future.
This was revealed in Dar es Salaam yesterday by the CRDB Bank’s managing director, Mr Abdulmajid Nsekela when he briefed reporters on the lender’s audited financial results for 2022.
According to the results, CRDB Bank’s profit after tax grew by 31 percent to Sh351.4 billion in 2022, from Sh268.2 billion in 2021.
“This represents a profit growth of 875 percent from Sh36.2 billion recorded in 2017, the year before the implementation of the previous medium-term strategy of 2018 – 2022 started,” he said.
He said the bank’s transformation initiatives have also yielded positive results, with its balance sheet growing by 97.2 percent to Sh11.6 trillion in 2022 from Sh5.9 trillion in 2017.
The bank’s chief financial officer, Mr Frederick Nshekanabo, said the credit reforms implemented over the past five years have aided a 138 percent growth of the loan book which reached Sh6.9 trillion in 2022, from Sh2.9 trillion in 2017.
The ratio of Non-Performing Loans (NPLs) to total gross loans declined from 13 percent in 2017 to a healthy 2.8 percent in 2022.
Customer deposits surged by 91 percent to reach Sh8.2 trillion in 2022 from Sh4.3 trillion in 2017 while liquidity asset ratio reached 27 percent to surpass the regulatory limit of 20 percent.
CRDB Bank registered double-digit growth rates in several other parameters, including in its core capital ratio and operating income among others.
“Our transformation efforts have enabled us to maintain our position as a market leader in Tanzania and drive growth while creating value for our shareholders.
Return on Equity (ROE) increased from 16.4 percent in 2017 to 26 percent, while the cost-to-income ratio improved from 66.7 percent to 49.8 percent,” he added.
In line with its aspiration of becoming a ‘digital first bank,’ CRDB Bank has played a significant role in driving financial inclusion, investing in digital channels SimBanking, CRDB Wakala, Internet Banking, and SimAccount to reach the underserved segments of the population. As a result, the Bank’s customers have grown nearly three-fold from 1.5 million in 2018 to more than 3.4 million.
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
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On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
Source: allafrica.com
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