CRDB Bank, Tanzania's largest bank by balance sheet, has declared its highest-ever dividend of TZS 50 per share following a standout financial year in 2023. This dividend announcement underscores CRDB's robust performance, with profits after tax surging by an impressive 21 percent.
The bank's net profit soared from TZS 351 billion in 2022 to TZS 423 billion last year, reflecting a substantial growth trajectory. The proposed dividend of TZS 50 per share for 2023 will total TZS 131 billion, marking an 11 percent year-on-year increase. However, regulatory approval is required for this dividend distribution, according to the bank's statement released yesterday.
CRDB's Group CEO and Managing Director, Mr. Abdulmajid Nsekela, attributed this outstanding performance to strategic initiatives focused on sustainable growth and the development of a resilient business model. He expressed satisfaction, stating, "We are pleased to announce another year of significant growth, solidifying our position as a key player in the financial sector in the region."
The bank's success was driven by growth in both funded and non-funded incomes. Funded income, particularly interest income, grew by 29 percent alongside the loan portfolio expansion, although net interest margin increased by 19 percent. Non-funded incomes, including fees and commissions, saw an impressive 11 percent year-on-year growth due to increased digital channel usage.
The bank's audited financial results for 2023 revealed substantial growth across key performance indicators. Total assets increased by 14 percent to TZS13.3 trillion, while loans and advances grew by 23 percent to TZS 8.5 trillion and customer deposits by 8.0 percent to TZS
8.9 trillion.
Mr. Nsekela highlighted the bank's successful execution of its new medium-term strategy (2023 – 2027) as a catalyst for record-breaking performance. He emphasized efforts to deepen engagement in the retail segment, expanding loans to Micro, Small, and Medium Enterprises (MSMEs) by 35 percent.
Moreover, CRDB's expansion into the Democratic Republic of Congo (DRC) market and the establishment of CRDB Insurance Company in 2023 underscore its strategic vision for broader regional influence.
CRDB's Chief Financial Officer, Fredrick Nshekanabo, emphasized the bank's solid financial position, pointing to a low Non-Performing Loans rate of 2.8 percent and a Cost to Income ratio of 49.5 percent, reflecting prudent risk management and sustained profitability.
Looking ahead, Mr. Nshekanabo reaffirmed CRDB's commitment to delivering value, noting the bank's strong position for future growth. The bank remains focused on sustainable growth and financial prudence, which will continue to guide its strategic decisions in the coming years.