The financial institution reported a pre-tax gain of Sh265 billion, a rise from Sh250 billion earned in the initial half of 2022.
Mr. Abdulmajid Nsekela, the Group CEO of the Bank, revealed in a statement yesterday that the marginal growth in earnings was due to an uptick in financing costs necessary to accommodate the business's escalating demands.
The relatively moderate increase in earnings was also a result of considerable capital allocation towards the bank's two new offshoots, CRDB Bank DRC and CRDB Insurance Ltd. The bank's subsidiary in DRC commenced operations in Lubumbashi on July 10, 2023.
Despite the modest profit growth, Nsekela pointed out that these outcomes underline the successful execution of the bank's newly instituted five-year strategy running from 2023 to 2027.
"We remain hopeful that these ventures hold the potential to positively influence the Group’s performance in the forthcoming period,” he added in yesterday's statement.
The bank's total revenue surged nine percent year-over-year, with interest income jumping by 26 percent to Sh192 billion from Sh175 billion over the same duration last year.
Income from non-interest sources grew by seven percent, escalating to Sh106 billion from Sh103 billion.
Due to the revenue increase, the bank's balance sheet broadened, with total assets leaping by 22 percent from Sh10.2 trillion in the second quarter of 2022 to Sh12.5 trillion as of the end of June, 2023.
This growth was mainly due to a 29 percent year-on-year surge in loans and advances, which swelled from Sh5.9 trillion to a remarkable Sh7.6 trillion.
"Despite the considerable expansion in loans, the Non-Performing Loan (NPL) ratio dipped from 2.8 percent to 2.7 percent, indicating the Bank’s efficient risk management practices and capacity to sustain a robust loan portfolio amidst rapid growth,” Nsekela explained.
Customer deposits of the Bank experienced a 23 percent rise, jumping from Sh7.1 trillion in 2022 to Sh8.7 trillion.
Nsekela emphasized the bank's ongoing focus on expanding its service delivery channels to guarantee improved service accessibility for clients.
Fredrick Nshekanabo, CRDB's Chief Financial Officer, acknowledged the critical role of the bank's digital transactions in driving revenue growth to unprecedented levels. With numerous initiatives promoting the use of digital channels, 96 percent of all transactions were executed digitally.
Expressing optimism about the future, Nsekela mentioned that the bank's proactive approach to augmenting revenue sources by leveraging strategic investments in technology, network expansion, and new subsidiaries would uncover new income opportunities and fortify the Bank’s competitive stance.