Arusha. CRDB Bank Group targets to raise its balance sheet to a staggering Sh16.4 trillion this year as it cements its position as Tanzania’s largest lender by asset size.
The board chairman for CRDB Bank Group, Dr Ally Laay said at the bank’s 29th Annual General Meeting (AGM) here on Saturday, May 18, 2024 that the target was realistic, banking his hope on the financial results for the first quarter of 2024.
“We are talking of a Sh16.4 trillion target in balance sheet size at the end of this year. We are talking of a bank that is next to none in terms of balance sheet size in the market,” said Dr Laay.
The CRDB Bank Group, which also operates subsidiaries in Burundi and the Democratic Republic of Congo (DRC), closed the year 2023 with a balance sheet of Sh13.3 trillion, according to data presented at the AGM by its chief finance officer, Mr Frederick Nshekanabo.
“The growth of our assets in 2023 was largely driven by a 22.8 percent growth in the loan portfolio which focused primarily on the retail sector…,” he said.
During the first quarter of the current calendar year, CRDB Bank registered a net profit of Sh128 billion.
The amount is equivalent to the net profit that the bank registered during the entire 2019 calendar year.
Addressing shareholders during the AGM, the CRDB Bank Group Chief Executive Officer, Mr Abdulmajid Nsekela, said the bank was finalizing the integration of its systems to enable seamless banking across Tanzania, Burundi and the DRC.
This, he said, will enable a seamless banking experience for a customer who holds an account in Tanzania when he/she travels to Burundi or the DRC and vice versa.
He said the Burundi subsidiary has grown to become the most profitable lender in that country, with assets reaching Sh985 billion and a total of Sh538 billion customers’ deposits.
Burundi contributed Sh30.2 billion to CRDB Bank Group’s net profit for 2023.
Going forward, said Mr Nsekela, the focus will be on sustaining and further improving the lender’s performance.
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Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
