How CRDB turned around to post profit of Sh130bn

Dar es Salaam. CRDB Bank yesterday announced a series of projects to be undertaken in a period of four months, as it marks 20 years of its existence.

It will make several donations to a number of education projects, managing director Charles Kimei said yesterday.

The bank will also award some of its long-serving members of staff as well as some of its key founding shareholders.

A number of promotional campaigns — under a slogan of ‘Twenty years of Growth and Transforming Lives’ —are also on the cards.

Incorporated in 1996, the then technologically-challenged 19-branch CRDB started with a loss of Sh1.8 billion in 1997.

Twenty years later, the bank’s number of branches increased to 198 while gross profit rose to Sh130 billion, courtesy of innovative products and services.

CRDB’s balance sheet stood at Sh40 billion while its asset size was valued at Sh54 billion in 1996. “As of December 2015, we were talking of a CRDB that had Sh5.3 trillion in total assets and Sh4.2 trillion in customers’ deposits,” he said.

Twenty years ago, CRDB had 120,000 customers but currently, the number stands at about 1.8 million.

Similarly, the bank started with just 400 employees but the number has since risen to 2,682.

CRDB also boasts to be the first bank in the country to integrate banks’ branches that facilitate transactions. Similarly, the first Automated Teller Machine (ATM) cards in the country were introduced by CRDB through its Tembo Card brand. “We have been the first to seize opportunity to enable Tanzanians living abroad to open domestic accounts—under a banner of Tanzanite,” Dr Kimei said.

Last year, CRDB paid taxes of Sh107 billion to the government. Of the amount, Sh55 billion was corporation tax while the remaining amount was in form of excise duties and Pay as You Earn.

The banks boast for its innovative alternative banking products including letting customers access their accounts using mobile phones, internet banking and mobile branches—full equipped with ATMs. The Simbanking has client base of one million, but fully registered are 500,000 customers, while Fahari Huduma has 1,769 agents.

“By the end of this year the number of the bank’s ATMs is expected to reach 500 [from the current 461],” Dr Kimei said.

The bank during its 20 years has managed to introduce two subsidiaries—microfinance deals which gives out loans to micro economic groups and CRDB-Burundi.

According to Dr Kimei, both are subsidiaries are now profit-making entities.