Government receives Sh36 billion in dividend from CRDB

Thursday June 30 2022
CRDB PIC
By Alex Nelson Malanga

Dodoma. The government yesterday received Sh36 billion in dividend from CRDB Bank as part of its investment in one of the largest lenders in the country.

The government is the majority shareholder, owning a 21.5 percent stake in the bank, which it holds through the Danida Investment Fund (DIF).

The Sh36 billion that the government received is part of the bank’s Sh268.2 billion profit after tax that the bank garnered last year.

Receiving the cheque from the CRDB chairman, Dr Ally Laay, the Finance and Planning minister, Dr Mwigulu Nchemba, commended the CRDB for the handsome performance during the first quarter of the current calendar year.

During the period, CRDB Bank registered a record Sh90 billion profit after tax, thanks to its impressive growth in both interest and non-interest income streams.

This is a 111 percent growth compared to a similar period last year.

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“The bank’s immense performance is an outcome of its good business strategies. This gives confidence to its shareholders and customers,” said Dr Nchemba.

“If you keep the momentum going, we will next year get more dividend.”

The dividend that the government harvested will be channelled to the projects of priorities as envisioned in the 2022/23 financial year.

“I commend the board of directors, management and all staff for a well done job,” he applauded.

Dr Nchemba challenged other institutions to emulate CRDB so that the government and other shareholders could enjoy investment returns.

He directed all institutions and corporations that the government is a shareholder to come up with smart strategies that would yield fruits.

Speaking of the importance of financial institutions for the prosperity of the country, Dr Nchemba applauded CRDB for taking down interest rates for agricultural loans to nine percent from the previous 20 percent. “Having a single digit interest rate on agricultural loans is commendable indeed,” he stressed.

CRDB managing director Abdulmajid Nsekela was of the promise that the bank will continue to offer good services that meet the customers and shareholders’ expectations. In their meeting held in June this year, CRDB’s shareholders approved a total dividend of Sh94 billion. This is translated into Sh36 per share or 64 percent increase compared to last year’s dividend.

“We are ready to continue cooperating with the government in increasing financial inclusion,” he gave an assurance to the minister.