News Column

CRDB Increases Dividends

May 9, 2014

Marc Nkwame

AS the CRDB Bank kicks off the bank's Annual General Meeting in Arusha today its management has announced that it has upped the dividend payments from the previous 12/- to the 14/- per share.

The CRDB Bank Board Chairman, Mr Martin Mmari revealed that effective from this year, the bank has increased the share pay-out by 2/- in line with their new dividend policy, which stipulates a disbursement ratio of at least 35 per cent of the Bank's annual net profit.

The Bank's after tax profits is clocking at 84bn/- an increase of 3bn/- from last year's profits a performance resulted from growth of shareholders' funds from 317 bn/- in 2012 to 376 bn/- by the end of 2013.

The growth is equivalent to an increase of 19 per cent in the CRDB shareholders' funds.

Tabling the prospects for this year 2014, the CRDB Board Chairman stated that the macroeconomic performance has been strong with inflation declining to single digits and gross domestic product (GDP) growth projected at about 7 per cent in the medium term.

Mr Mmari said the bank's return on assets, was 3.5 per cent above the target set in the strategy which was mapped to at least 3.0 per cent.

"It is my expectation that in 2014 CRDB will continue to be a leading bank in Tanzania as we continue implementing the 2013-2017 business strategy with due consideration of emerging opportunities," he stated.

Apparently CRDB focuses that the main drivers for the economy in this and the next fiscal year will be telecommunications, transport, financial intermediation, manufacturing, construction and trade.

"We also expect better opportunities for corporate banking and wealth management from large foreign and domestic investments targeting mining sector and fast growing middle and high income classes respectively," said Mmari.

He said he was on view that the newly found natural gas resources will indeed play an important role in the country's socio-economic transformation over medium term with planned large investments in gas and energy sectors expected to reduce power tariffs and electricity supply problems in future.

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Source: AllAfrica