CRDB records plunge in profits by half in 2017

Dar es Salaam. CRDB net profit fell by almost half last year when compared with 2016, the bank’ audited financial statement for the year ending December 31, 2017 shows.

Last year the bank posted a profit of Sh30.8 billion from Sh63.7 billion recorded in 2016.

According to the managing director, Dr Charles Kimei, the drop in profit was mainly due to an initiative set to clean up the loan book, and as a result, provision of impaired loans increased during the year.

“The decrease (in profit) is primarily attributed to accelerated provisioning to enhance coverage of impaired loans from 32 per cent in 2016 to 59 per cent, being part of the initiative to clean up the loan book,” read his statement in the audited financial statements.

Prior to the plunge in profit, the bank reported its assets to be less profitable last year compared to 2016.

The return on average total asset in 2017 was 0.9 per cent from 2.1 per cent.

Also the bank has reported less ability of shareholders fund in generating profit last year compared to the corresponding year.

Return on average shareholders fund last year was 4.2 per cent from 9.9 per cent in 2016.

Despite these performance indicators, the bank announced to pay out a dividend of Sh5 per share to its shareholders in June 5, this year.

The dividend will be paid soon after agreements from the shareholders meeting that will be held on May 19.

The bank’s secretary, Mr John Rugambo, said “shareholders will receive their dividend through their registered bank accounts, M-Pesa, Airtel Money or Tigo-Pesa.”

He added that registration process of shareholders who wish to attend the meeting will commence on May 16.