Tanzania: CRDB Bank posts 148bn/-record profit

CRDB Bank has posted a record pre-tax profit of 147.91bn/- for the group in the nine months of this year hence surpassing last year’s full profit.

The bank, with the largest balance sheet, in the same period last year January to September posted a pre-tax profit of 103.9bn/-.

The nine-month profit surpassed last year’s full profit of by slightly less than 100bn/-.

The profit has increased the bank’s share demand at Dar es Salaam Stock Exchange (DSE) as over 89 per cent of the shares sold at the bourse last week were from CRDB.

The bank attributed the group profit to net income revenue that went up to 275.58bn/- of September compared to 198.38bn/- of same period last year.

The net income interest was the outcome of loans and advances portfolio that grew to 3.06tri/- in three months ending September. At the end of June the portfolio was 2.91tri/-.

The loans portfolio growth was helped by deposits that also increased to 4.02tri/- at September from 3.75tri/- at June.

The non-interest income also contributed significantly to the record profit after generating 131.93bn/- from 108.47bn/-, the big slice of 106.42bn/- came from commission and fees.

The bank’s total assets grew by 7.0 per cent to 5.27tri/- at the end of third quarter of this year from 5.01tri/- of second quarter.

CRDB is still haunted by non-performing loans as the ratio increased slightly to 7.0 per cent from6.8 per cent, thus rising bad debt allocation to 35.2bn/- from 20.8bn/-.

Mid this year the Bank announced that its ability to lend had reached 150bn/- to a single customer thanks to the over 600bn/- capital base.

The amount follows a successful rights issue that saw the bank mobilise extra capital after selling its 435 million shares to realise 152bn/-.

With that ability the bank is considering to open subsidiaries in Zambia and in the Democratic Republic of Congo (DRC) next year.

CRDB is the largest bank in Tanzania in terms of balance sheet and has 162 branch networks in the country and four in Burundi.
Source: Daily News, reported by Abduel Elinaza, from Dar es Salaam, Tanzania
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