Dar es Salaam, Tanzania.
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.
Net interest income is the difference between interest revenues and interest expenses. The bank earns interest from customers when it loans them money, and in some instances charges bank fees on money deposited by customers also.
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.
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Tanzania: Exim to Raise Fund for Mental Health Facilities Upgrades
EXIM Bank to raise 300m/- over the next three years for financing essential services and infrastructure upgrades in mental health facilities.
The bank’s Head of Marketing and Communications Stanley Kafu unveiled this when introducing Exim Bima Festival 2024 as a platform for bringing together individuals, organisations and various sectors for raising the funds.
“Exim’s initiative aligns with the government’s broader goals to ensure that every citizen has access to quality healthcare, including mental health services,” he said.
The initiative, which is one of the events for celebrating the bank’s 27th anniversary is scheduled for Wednesday this week in Dar es Salaam.
Mr Kafu highlights that this year’s festival is not only about raising awareness of the importance of insurance in the society but also focuses on enhancing access to mental health services and improving the overall well-being of the nation.
Statistics from the Ministry of Health shows a staggering 82 per cent increase in mental health cases over the past decade.
Mental cases have risen from 386,358 in 2012 to 2,102,726 in 2021, making the need for mental health services more urgent than ever.
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Unfortunately, the country’s ability to address this growing challenge is hindered by a shortage of mental health professionals, infrastructure, medical equipment and essential medication.
For example, out of the 28 regions in the country, only five have facilities that provide adequate mental health services.
The most affected group is the youth aged 15 to 39, who represent the nation’s workforce, underscoring the need for intensified efforts to safeguard this generation for Tanzania’s future well-being and development.
Mr Kafu said by improving mental health services, Exim aims to contribute to the creation of a network of communities that can access care quickly and affordably.
Exim Insurance Department Manager Tike Mwakyoma said they are appreciating the support from partners in the insurance industry, who have stood by them since the last festival.
“Let’s continue this unity for the development of all Tanzanians and our nation as a whole,” the manager said.
Source: allafrica.com
