Dar es Salaam. CRDB Bank Plc reported a 29 percent improvement in profit before tax during the third quarter of 2020, fueled by growths in interest and non-interest income streams as the financial services sector recovers from the Covid-19 pandemic.
At the group level, the bank made a cumulative after-tax profit of Sh120 billion during the third quarter of 2020, up from the Sh92 billion profit that was reported in the cumulative period to the third quarter of 2019.
Interest income rose by 9.2 percent to Sh426 billion during the year to September 30, 2020 from Sh390 billion during the year to September 30, 2019, the bank’s financial statements show. On the other side, non-interest income (such as debt and equity) also rose by 8.9 percent to Sh204 billion during the year ending September 30, 2020 compared to Sh187 billion for a similar period to September 30, 2019.
“The sustained positive growth is attributable to proactive strategies that have steered the Bank Group in the wake of an unprecedented pandemic that has adversely impacted various sectors of the economy,” Group chief executive officer Abdulmajid Nsekela, said in a statement yesterday.
He said that the bank’s decision to support its customers during the pandemic implied the adoption of innovative solutions for customers which have had positive returns.
“We have elevated our interactions with customers and accelerated our digital offering, supported by a robust system infrastructure, which has ensured service availability and seamless integrations,” he explained.
The Group’s key performance indicators remained steady, with total income growing by 11 per cent quarter-on-quarter from Sh202 billion to Sh225 billion. Cumulatively, the total operating income registered a nine percent year-on-year growth to reach Sh630 billion during the year to September 30, 2020 from Sh577 billion in September 2019.
“We have a particular focus on cost efficiency and employee productivity, which we reckon have a net impact on our long-term growth,” said chief finance officer, Frederick Nshekanabo.
The group’s administrative expenses declined by nine percent to Sh144 billion from Sh158 billion in the previous year.