CRDB Bank's Burundi subsidiary has raked in more deposits that expected signalling the need for the bank to prepare for consolidation regionally in the next five years.
The subsidiary managed to collect 1.12bn/- deposits in just one month of operation that ended last December, which was more than some branches in Tanzania had amassed in initial operation.
CRDB's Managing Director, Dr Charles Kimei, said the subsidiary in Inyenyeri, Bujumbura, has only one branch that also housed the headquarters in Burundi. "The branch is simply growing very fast," Dr Kimei said during the bank's investor and analyst day.
He said: "For the year 2012, with less than one month of its operations, the net loss for the year stood at 300m/-, which is within our expectations." The branch, with one mobile branch and five ATMs, total assets at the end of last year grew to 18.65bn/-.
CRDB Bank targets that by the year 2017, the subsidiary will contribute between 3 per cent and 5 per cent of net income while acting as the base-hold to build foothold in East African markets. "(We are) target a market share of 5 per cent or more in Burundi by 2017," Dr Kimei said.
The Burundi, the first of the CRDB overseas branch, was soft opened last November, before being officially launched by the country's president, Pierre Nkurunziza, in December last year.