CRBD, NMB record bullish performance in H1, 2022

Tanzania’s biggest banks in terms of assets and deposits CRDB Bank PLC and NMB Bank recoded strong performance during the first half of this year with both banks continuing to steadily build their balance sheets.

According to the Orbit Securities performance update, the two banks registered strong growth in the total assets, which was mostly due to the strengthening of the loan books.

CRDB, which registered largest assets pool, had grown its assets by 9 per cent to reach 10.25trn/- ($4.42Bln), while NMB grew its assets by 19 per cent to reach 9trn/- ($3.89Bln). 

 According to the report, loan to deposit ratio for both banks remain in the ‘safe’ zone, a slight pressure on the CRDB loan to deposit ratio, which was at 84 per cent above the BOT optimal ratio of 80 per cent.

“During the period the bank grew its loans by 7 per cent to a total of 5.9trn/- loan book funded by the deposits which also grew by 8 per cent from 6.5trn/- to 7trn /-during the period. NMB maintained a 76 per cent loan to deposit ratio, which is below the optimal ratio of 80 per cent,” the report said

During the period under review, CRDB recorded a 2.9 per cent % Non-Performing Loans (NPL) ratio while NMB was 90bps higher with an NPL ratio of 3.8 per cent.

“Both banks’ loan portfolio, consists of at least 40 per cent salary loans, which has the lowest risk of default, and has for years being the buffer for the Banks’ aggressive lending,” the report said  

Operations of both banks have strengthened further in the 6-months period with NMB posting a net Interest income of 377.5bn/-, a growth of 16% y.o.y. where the income was mostly funded by loans and a small portion funded by government securities, to which NMB added its holdings by 1 per cent.

The same reciprocated by CRDB which reported a 20 per cent growth in net Interest Income for the period to 356.23bn/-