CRDB Bank Sustains Resilient Performance as 2020 Pre-Tax Profit Surges to Sh236 Billion

• Pre-tax profit grew to TZS236 billion representing 35% growth from TZS175 billion in 2019

• Non-interest income grew by 13% (YoY) to TZS284 billion from TZS252 billion reported in 2019.  

• Loans and advances grew by 16% to TZS3.9 trillion, compared to TZS3.4 trillion reported in 2019

• Maintained a quality loan book with an improved NPL ratio of 4.2% from 5.5% reported in 2019

• Group’s assets grew by 9% to TZS7.2 trillion from TZS6.6 trillion in 2019 

Tanzania’s largest financial services provider CRDB Bank Plc has cemented its market leadership position with a rousing financial performance, after posting a TZS 236 billion pre-tax profit in the twelve months of 2020.

The growth represents a 35% jump from TZS 175 billion reported in 2019. The successive improvement in performance affirms the Group’s acclaimed potential, which continues to manifest amid raging competition.

Over the past two years, CRDB Bank’s performance has strengthened on the back of strategic reforms, which continue to change the Group’s fortunes to the delight of its shareholders. Group CEO & Managing Director Abdulmajid Nsekela attributes the sustained performance to ongoing transformations that have ‘unlocked the Bank’s abilities’, leveraging a solid customer base and a favourable business environment.

“Despite the COVID-19 disruption, we delivered a strong balance sheet underlined by strong growth in both our net interest and non-funded incomes. We recovered in areas that had exhibited weakness in the course of the year, thanks to an adaptive strategy and timely interventions” says Nsekela.

The Group’s income improved significantly despite a slowdown in the economy because of the COVID-19 Pandemic. Group operating income registered an 10.4% (YoY) growth at TZS854 billion from TZS774 billion reported in the previous year. Non-interest income registered a 13% (YoY) growth to TZS284 billion from TZS252 billion reported in 2019. Customer deposits grew marginally to TZS5.4 trillion, representing a 4% upward movement from TZS5.2 trillion reported at the end of 2019.

“The disruption of business dented our customers' pockets as many reprioritized their expenditure in the wake of the COVID-19 pandemic,” explains Nsekela.

The Group’s profitability was further bolstered by its two subsidiaries, which contributed 7.0% of the overall PAT. CRDB Burundi SA performed particularly well, leveraging stable macros and aggressive sales despite the local challenges in Burundi. The Burundi subsidiary profit grew by 75% from TZS 6.4 billion to TZS11.2 billion. The insurance Subsidiary, CRDB Insurance Broker Limited posted a TZS 3.6 billion in profit representing a 140% year on year growth.  

“Our strategy to support customers during the pandemic played a major role because it allowed us to realign our plans and adapt to the changing situations,” the Group CEO explains.

Group loans and advances grew by 16% to TZS3.9 trillion, compared to TZS3.4 trillion reported in 2019. “We kept a healthy loan book maintaining a good asset quality despite the challenges our customers faced. Our Non-Performing Loans (NPL) closed at 4.2% from 5.5% reported in 2019,” says Fredrick Nshekanabo, Chief Financial Officer (CFO).

“We continue to monitor and work closely with our customers in sectors affected with the pandemic,” Nshekanabo assures.  The Group’s assets grew by 9% to TZS7.2 trillion, maintaining the Group’s leading position as the largest financial entity by asset base. As at the end of the 2019 FY, the Group had a combined asset base of TZS6.6 trillion, which translates to a 23% market share.
The results came even as the Group accelerates its plans to spread its wings into the region to take advantage of the growing regional trade and compete favorably.