CRDB, NMB COMPETE FOR TOP POSITION

The banking competition is staged to centre on the two largest banks in the country, CRDB Bank and the National Microfinance Bank, after both were approved to handle government business, which was previously under the latter.

The NMB was exclusively handling the government business affairs based on its wide network coverage but CRDB bank this year won the tender after it expanded its outreach.

Analysts have it that, NMB with some 160 branches and CDRB over 120 branches and over 1,600 agent banking units, are likely to dominate the sector in many years to come.

Dhow Financials Chief Executive Officers, Prof Mohamed Warsame said NMB and CRDB had earlier taken a different lane where the former concentrated on retail banking and the latter on corporate business but today are venturing into same path.

“Today if you analyse closely their businesses NMB is venturing also into corporate and CRDB enters retail business as well,” Prof Warsame, a financial analyst, said.

He said CRDB is a biggest bank in terms of balance sheet -- deposits, loans, assets -- while NMB is the largest in terms of profitability which is pushed by retail business.

In 2014 CRDB registered a net profit of 95.6bn/-, deposits went up by 12.1 per cent to 3.39tri/- compared to 3.02tri/- while assets shot by 18.3 per cent to 4.21tri/- from 3.55tri/-.

On other hand, NMB generated a net profit of 155.7bn/-, its total assets grew to 3.88tri/- from 3.78tri/- and deposits jumped to 2.98tri/- from 2.86tri/-. The analyst said competition between the bank would intensify as they both realized the potential of the side they had not focused much -- cooperate business for NMB and retail banking, including agent banking scheme for CRDB Bank.

“The two banks, (at the moment), control almost 50 per cent of total banking sector profit,” Prof Warsame said, “These are two big competitors.” Others like Exim Bank, Standard Chartered Bank, Stanbic, National Bank of Commerce, and Bank M are coming up well, he said.

CRDB Managing Director, Dr Charles Kimei, is said to win the government business, they had to build 20 new branches in cities, municipalities and councils.

“We had to invest quickly and increase our presence in the rural areas where we had no branches… in order to win the business,” Dr Kimei said.

The CRDB chief said at the moment the bank managed to get some 50 per cent of the government business so far and the future was promising.

CRDB Chairman, Martin Mmari said this year’s quarter-one financial results were interesting and painting a picture of better financial performance.

Daily News