CRDB Bank

EARNINGS
HIGHLIGHT
March 2024
 Member of Dar Es Salaam Stock Exchange and Authorised Dealer of Government Securities
PSSSF House, Ground Floor, Samora Avenue/Morogoro Road, P.O. Box 77049, Dar es Salaam
[email protected]

CRDB BANK PLC FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDING MARCH 2024
INCOME STATEMENT ANALYSIS
Net Profits Trend in Billions TZS
Net Profits decreased by 11% from TZS 143.26 Billion
during the 4th Quarter of 2023 to TZS 127.50 Billion 143.26
during the 1st Quarter of 2024. 127.50
Possible Reasons:
100.46
Income tax provisions grew by 35.51% from TZS 44.46 90.22 89.77
Billion in the 4th Quarter of 2023 to TZS 60.24 Billion in the
1st Quarter of 2024, as the corporate tax ratio grew from 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1
23.68% in the 4th Quarter of 2023 to 32.09% in the 1st
Quarter of 2024.
Cost to Income Ratio Trend
Loan Impairment charges grew by 295.43% from TZS 4.57 52.18%
Billion in the last quarter of 2023 to TZS 18.09 Billion in the 50.95%
1st Quarter of 2024 due to an increase in the bank’s Non-
48.43%
Performing Loans by 22.06% from TZS 245.75 Billion in the
46.82%
last quarter of 2023 to TZS 299.96 Billion in the 1st Quarter 46.07%
of 2024
A 5.48% fall in the company’s fees and commission income
from TZS 104.36 Billion in the 4th Quarter of 2023 to TZS
98.65 Billion in the 1st Quarter of 2024 due to post-holiday 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1
changes in customer spending and activity patterns
Improved areas: Net Profit Margin Trend

Income on foreign currency dealings increased by 65.10% 40.13%

from TZS 14.26 Billion in the 4th Quarter of 2023 to TZS
23.54 Billion in the 1st Quarter of 2023 due to increased
sales activities in 1Q 2024 compared to the last quarter of 35.07%
2023 as the foreign currency liquidity in the market
improves. 32.51%
31.87%
30.95%
A 6.97% decline in interest expenses from TZS 98.53 Billion
in Q4 of 2023 to TZS 91.66 Billion in Q1 of 2024 perhaps due
to a debt repayment of TZS 82.73 Billion in the 1st Quarter 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1
of 2024

Other Performance Indicators:

• Cost to income ratio stood at 46.07% as of March 2024 compared to 46.82% as of December 2023
• Profit margins decreased from 40.13% in December 2023 to 35.07% in March 2023.

Income Statement Analysis

2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1
Amounts in Billions TZS

Net Operating Income 277.54 290.04 315.17 357.00 363.61

Growth Rate 0.93% 4.51% 8.66% 13.27% 1.85%

Operating Expenses 144.74 157.93 168.72 169.28 175.87

Growth Rate 0.13% 9.11% 6.83% 0.33% 3.89%
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 CRDB BANK PLC FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDING MARCH 2024

BALANCE SHEET ANALYSIS Customer Deposits in Trillions TZS

Assets increased by 4.84% to reach TZS 13.97 9.48

trillion in the first Quarter of 2024, compared to
TZS 13.26 trillion in the fourth Quarter of 2023. 8.76 8.86
8.68
Possible Reasons: 8.31

Loans and Advances increased 4.88% to TZS 8.86

trillion following the quarter's disbursement of TZS
383.43 billion. 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1
Following increased lending activities by CRDB to
other banks, CRDB’s interbank loan receivables Loans & Advances in Trillions TZS
increased by 83.81% from TZS 233.50 billion in the 8.86
4th Quarter of 2023 to TZS 429.18 billion in the 1st
Quarter of 2024. 8.45
8.12
The bank increased its deposits with other financial
institutions by 24.66%, from TZS 527.94 billion in 7.67
the 4th Quarter of 2023 to TZS 658.12 billion in the
1st Quarter of 2023. 7.19

The bank also increased its investments in

government securities by 2.74% from TZS 2.17 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1
Trillion to TZS 2.23 Trillion following the bond re-
openings for high-coupon bonds that took place Borrowings to Equity Ratio Trend
since February in which CRDB participated in.
134.83%
The bank could finance its asset growth with a 130.49%
4.49% increase in liabilities to TZS 12.06 Trillion, 125.18%
which was mainly influenced by the bank’s efforts 123.68%
to mobilize TZS 623.04 Billion.
Additionally, shareholders’ equity grew by 7.09% to 112.56%
TZS 1.91 Trillion, brought about by the banks’
profitability.
2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1

Other Performance Indicators:

• Non-Performing Loan Ratio has decreased to 2.81% compared to 2.81% as of December 2023
• Loans as a percentage of deposits decreased to 95.8% compared to 97.9% as of December 2023
• Shareholders Equity to Total Assets stood at 13.66% compared to 13.37% as of December 2023
Balance Sheet Analysis
2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1
Amounts in Trillions TZS
Total Assets 11.99 12.54 12.76 13.26 13.97
Growth Rate 3.04% 4.59% 1.75% 3.95% 4.84%

Total Liabilities 10.45 11.05 11.15 11.48 12.06

Growth Rate 2.91% 5.73% 0.88% 3.01% 4.49%

Equity 1.54 1.49 1.61 1.78 1.91

Growth Rate 3.98% -3.18% 8.18% 10.50% 7.09%

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 CRDB PLC FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDING MARCH 2024

INVESTORS’ CORNER

Following the results released on April 29th CRDB 52-Week Share Price Trend
the share prices for CRDB remained stagnant 590
570
at TZS 560 per share, however the counter is
550
showing signals of a price drop since at the 530
time of the writing shares have began trading 510
490
at a lower price of TZS 540 while the number 470
of outstanding shares on the sell side stood at 450
430
2.1 Million shares with no shares outstanding
on the buy side as of May 9th .
Year to Date Share Price Performance

COUNTER Opening Price as of 2 – Jan - 2023 Closing Price as of 10 – Apr – 2024 Capital Gain
CRDB TZS 460 TZS 560 ▲ 21.74%

Other Financial Indicators

CRDB BANK March 2024
Price to Book Value Ratio* 0.77x
Dividend Yield** 10.87%

* Closing share price TZS 560 as of 10th May 2024, against book value per share of TZS 730.42 as of 31st March
2023
** The Declared dividend per share for 2024 is TZS 50 which is compared against the share price at the start of
the year

ANALYSTS' COMMENTARY
From a year-over-year basis, CRDB has had an impressive start compared to 2023, with earnings up by 41.33%
from TZS 90.22 Billion in the 1st Quarter of 2023 to TZS 127.50 Billion in the 1st Quarter of 2024, with the growth
influenced by stronger credit demand from the private sector and growing digital adoption of financial products
resulting in higher revenues from the bank’s fees and commissions.
Additionally, the bank has been able to mobilize deposits worth TZS 623.04 billion compared to the value of
loans it has disbursed which stood at TZS 383.43 billion during the 1st Quarter, these efforts plus the bank’s
continued momentum to reduce the role of borrowings to its overall balance sheet over the past 3 quarters
could put the bank in a position where it could acquire cheap financing to lend out to customers resulting in an
improvement in the banks profitability.
Following the CRDB’s 2023 results, the bank has declared a dividend per share of TZS 50, which fell below our
previous expectations of a payment ranging between TZS 55 – TZS 57, perhaps because the bank has decided to
retain more of its retained earnings in order to properly capitalize its new subsidiary in the Democratic Republic
of Congo. The TZS 50 dividend per share is set to be paid out on June 5th, 2024, for those shareholders who will
be on the CRDB’s shareholder registry by 13th May 2024.

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