CRDB Bank Plc has recorded a strong net income in the fourth quarter which is the best ever-quarter net profit since its inception. As one of the largest lenders in the country, the bank said in a statement that, its profit after tax grew by 31 % to Tsh. 353 billion in last year’s fourth quarter, being the highest ever the bank has ever recorded.
CRDB Group CEO and Managing Director, Mr. Abdulmajid Nsekela, said the results were driven by the bank’s efforts to grow non-funded income. The net interest income increased by 13% to Tsh. 713 billion last year from Tsh. 630 billion in 2021 due to an increment in loans and advances.
This huge profitability is expected to translate to an increase in the portion of corporate social responsibility since the bank policy set aside 1% of its profit toward CSR. Loan disbursement went up by 36% to Tsh. 6.878 trillion from Tsh. 5.040 trillion in a similar period last year.
The Statement also shows that Total assets grew by 32% to Tsh. 11.646 trillion from Tsh. 8.818 trillion, while customer deposits rose by 27% to Tsh. 8.141 trillion from Tsh. 6.434 trillion. The Non-Performing loans ratio continued to decline, reaching 2.8% last December. The Bank also managed to push down the cost-to-income (CIR) ratio to 49.40% from 55.30 percent.
The bank in the last five years saw its profitability climb from Tsh. 64 billion in 2018 to Tsh. 268 billion in 2021. In the last year’s first half its net profit climbed to Tsh. 174 billion and now Tsh. 353 billion in quarter four of last year.
The rise in net profit comes as good news to investors who will expect an increase in their dividends this year.