15 February 2013

Tanzania: CRDB Maintains Robust Growth

CRDB Bank, the country's biggest bank in term of assets, has doubled it profits last year, thanks to the net income and foreign exchange dealings that pushed up its performance.

The bank, which last quarter opened a branch in Burundi, posted a net profit of 75.64bn/- at the end of last year compared to 37.71bn/- realised the previous year.

The results published on Thursday attributed the superb profit since the aftermath of global financial crisis three years ago, to net income interest that increased by 31 per cent to 206.22bn/-.

Also, non-interest income (mostly fees, administrative charges and commissions) rose by 59 per cent to 97.97bn/- pushed mainly by earnings from foreign currency dealings that generated 22.39bn/- compared to 1.55bn/- in 2011. CRDB this time around wrote off no bad debts, but set aside 29.66bn/- for impairment losses on loans down, from 31.22bn/- of previous year.

The bank performance was hurt by huge bad debts after borrowers defaulted their repayment obligations in the aftermath of the global financial crisis. Nevertheless, nonperforming loans to deposits ratio dropped by 2.0 per cent to 6.0 per cent and stood at 117.74bn/- at the end of last year.

In a single year CRDB increased 21 branches to close the year with 94 branches in and outside the country. The workforce shot up as well to 1,898 from 1,658. The bank's assets grew by 4.0 per cent to 3.074tr/- while customers' deposits also increased by the same per cent to 2.56tr/-. CRDB shares traded at 160/- on Thursday, appreciating by 14.29 per cent since the year began. Following the profitability level earning per share (EPS) rose to 35/- from 17/- of 2011.

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