The Times of Tanzania
Eastern Africa News Network, Breaking News Tanzania

Tanzania’s CRDB Group moving to establish bank subsidiaries in Zambia, Comoros and Uganda

Tanzania’s leading financial establishment, the CRDB Group is planning to establish new bank operations in other neighboring countries of Zambia, the Comoros and Uganda.

The new development comes after CRDB realized remarkable after-tax profits from its Burundi subsidiary,

Later, CRDB in its international treasure trove hunt, will also venture into Rwanda. The Tanzanian banking Group already has presence in the Democratic Republic of Congo where it established a subsidiary in 2023.

Speaking in Arusha at the threshold of the CRDB Annual Shareholders Meeting, the Chairperson of CRDB Board of Directors, Ally Hussein Laay revealed that during the fiscal year 2023, the Group experienced a blend of successes and challenges.

On success, Laay explained that some of the Bank’s subsidiaries made positive contributions to the Group’s performance, notably the CRDB Bank Burundi S.A. which achieved an impressive 30.7 percent year-on-year growth in ‘Profits After Tax’ (PAT), reaching 30.2 billion/-.

“The Burundi subsidiary is marking a ten-year milestone with an impressive performance,” pointed out Laay, adding that it was now the right time for the Group to expand into Eastern and Southern Africa Regions.

“We may have to start with Zambia and then sail across to the Comoros as well as Uganda, before inching into Rwanda,” said the CRDB Board of Directors Chairperson.

On his part, the CRDB Managing Director and Chief Executive Officer Abdulmajid Mussa Nsekela said the Group has advanced with the implementation of their new medium-term strategy.

“Our bank made significant progress in financial performance by capitalizing on opportunities within our markets,” said CEO Nsekela.

The CRDB Group boasts a record Profit after Tax (PAT) of amounting to 422.8 billion/- in the fiscal year ending in 2023, marking a remarkable 20.3 percent year-on-year growth from the previous 351.4 billion that was realized in 2022.

According to the Bank’s yearly report, this milestone represents the highest profit ever recorded in CRDB’s history, showcasing the group’s potential as an organization.

As result, CRDB has upped dividend payments to per share from 45 shillings to 50 shillings.

This year, a total of 130.6 billion/- will be disbursed to the bank shareholders after the group’s remarkable profits.

Still, all is not sunny with the Bank’s undertakings, because CRDB’s newly established subsidiaries, Insurance Company Limited and CRDB Congo, recorded losses of 1.7 billion/- and 4.2 billion/- respectively.

The total subsidiary contribution to Group Profit after Tax stood at 6 percent, indicating a growing potential for profitability.

But as far as the board chairperson is concerned, CRDB Group is committed to sustaining this growth trajectory by continuing to invest in new opportunities.

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