CRDB approves 26bn/- as dividends

CRDB Bank has approved a total of 26.1bn/- as dividends for the year ending December 2012, which is 33 per cent of the net profit and an increase of 33 per cent of the 19.6bn/- disbursed in the previous period.

The Annual General Meeting (AGM) held in Arusha on Saturday also approved 12/- per share, which is equivalent to 30 per cent increase of the amount offered in the year 2011. 

The shareholders retained PriceWaterhouseCoopers (PWC) as the bank’s auditors for the 2013 financial year.

“We are focused to ensuring high shareholders return as reflected by earnings per share and partly by the dividend paid per share. We recommended a 12/- per share and I am happy to note that the same has been approved by the shareholders,” said Mr Martin Mmari, the CRDB Bank Board Chairman.

The positive performance is attributed to the increase of profit due to the ‘revival of foreign exchange related income to its normal trend, growth in net interest income and fees and commissions coupled with strong cost management.’

The bank managed to post impressive performance in the 2012 financial year after mobilising 107.7bn/- pre-tax profit, which is 111 per cent increase compared to the previous 51bn/- of the previous year.

The CRDB Bank Managing Director, Dr Charles Kimei attributed the improved performance to the significant growth in customer deposits, especially from government institutions and growing customer base as well as an increasing loan portfolio.

“The bank’s interest income grew by 73.3bn/- to 261.7bn/-while the net interest income rose to 206.2bn/- in the period under review compared to 153bn/- recorded in 2011,” said Dr Kimei. However, loan repayment remained a challenge to the bank although it managed to reduce it to 6.8 per cent below the national average of 7.5 per cent.

“We are persistently working to reduce to at least 5 per cent of the loan portfolio which stood at 1.807bn/- as of December 2012,” he noted. He said the bank’s net interest income after loan impairment charges increased to 179bn/- in 2012 from 122.2bn/- in 2011.

On the other hand, fees and commissions income grew to 75.2bn/- up from 62.8bn/-in 2011. Dr Kimei said the bank remains steadfast in implementing activities aimed at ensuring growth in retail (personal, retail, microenterprises and SMEs) business.

He further said the bank’s total assets are expected to grow by 17 per cent by end of 2017 on the back of adequate capital and liquidity levels. The developments come as the bank continues to roll out products aimed at growing its banking services portfolio.

Last month, the bank launched a China Desk - a platform aimed at facilitating business between Tanzania and China. 

He said the growing business between China and Tanzania meant great prospects and the bank was working with the Bank of China and the Hongkong and Shanghai Banking Corporation (HSBC) to ease the costs and risk of doing business between Tanzania and China
Source: The Daily News, reported from Dar es Salaam
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