CRDB Bank shareholders have every reason to celebrate as they are set to receive a windfall following the approval of the highest dividend in the bank's history. At the recently concluded annual general meeting over the weekend, shareholders unanimously agreed to the proposed dividend payout, which stands at 45/- per share for the previous year. This amount represents a significant increase of 25 percent compared to the dividend of 36/- per share in 2021.
The approval of the generous dividend translates to a total value of 117.5 billion Tanzanian shillings for the previous year. Dr. Ally Laay, Chairman of the CRDB Group, hailed the approved dividend as a testament to the bank's strong and progressive growth in earnings per share, which reached 134.50 last year.
Speaking at the AGM, Dr. Laay emphasized the importance of adopting a resilient business model to navigate challenges and the ever-evolving business landscape. He highlighted the successful completion of the bank's 2018-2022 five-year medium-term strategy, which resulted in crossing the 10 trillion Tanzanian shillings balance sheet threshold, a significant milestone for the bank.
CRDB Group recorded a net profit of 351.4 billion Tanzanian shillings, marking a notable 31 percent increase compared to the previous year's 268.2 billion Tanzanian shillings. Abdulmajid Nsekela, CEO and Managing Director of CRDB Group, announced that this year marks the beginning of the bank's new five-year business strategy, themed 'Evolve,' which aims to address identified gaps and focus on building the economy, generating sustainable value, and leveraging partnerships for growth and impact.
The new strategy places customers at the center of the bank's actions, with a focus on enhancing their experience and meeting their unique financial needs. Efforts to strengthen the bank's income have yielded positive results, as evidenced by a 28 percent growth in operating income to 497.7 billion Tanzanian shillings last year. This growth was driven by an increase in net interest income, which grew by 15.5 percent year-on-year to 745.8 billion Tanzanian shillings, fueled by the growth of the loan book.
CRDB Bank also showcased a strong balance sheet growth, with a year-on-year expansion of 32 percent from 8.8 trillion Tanzanian shillings in 2021 to 11.6 trillion Tanzanian shillings last year. This growth was attributed to a 26.4 percent increase in customer deposits, reaching 8.2 trillion Tanzanian shillings from 6.5 trillion Tanzanian shillings in 2021.
Mr. Nsekela highlighted the bank's improved operational capabilities and enhanced service delivery, enabling CRDB Group to scale up its services and deploy innovative solutions that continue to transform the market. The bank has embraced digital transactions, with over 95 percent of transactions conducted digitally through SimBanking, internet banking, and their extensive network of over 28,000 CRDB Wakala agents.
Over the past five years, strategic partnerships have played a pivotal role in CRDB's success. These partnerships have allowed the bank and its subsidiaries to mobilize capital, deploy new technologies, and integrate services, ultimately enhancing the customer experience. The recently approved five-year medium-term strategy for 2023-2027 aims to further cement CRDB's position as the undisputed leader in the market.
Shareholders expressed their delight at the consistent payment of dividends, with Dr. Charles Kimei, former Group CEO and current Member of Parliament for Vunjo, commending the bank for never failing to pay dividends since its inception. In addition to approving the dividend