CRDB Bank, operating across Tanzania, Burundi, and the Democratic Republic of Congo (DRC), reported a 30.3 percent increase in profit to Sh 551 billion in 2024, up from Sh 423 billion in 2023, driven by strong balance sheet expansion and revenue growth.
The bank's performance showed significant gains across key metrics, with total assets reaching Sh16.6 trillion, loans and advances increasing by 23 percent to Sh10.4 trillion, and customer deposits growing by 24 percent to Sh10.9 trillion.
The strong performance is attributed to the execution of CRDB's 2023-2027 strategy focusing on digital solutions and operational efficiency, with digital investments contributing to a 14 percent increase in Non-Interest Income.
The bank maintained strong financial indicators, including a capital adequacy ratio above regulatory limits and a Non-Performing Loan ratio of 2.9 percent, while its financial inclusion initiatives supported MSMEs, agriculture, youth, and women across East Africa.
Group CEO Abdulmajid Nsekela expressed confidence in the bank's continued growth through market expansion and partnerships with both local and global institutions.
Meanwhile, Exim Bank (Tanzania) Limited has finalized the acquisition of Canara Bank Tanzania Limited's assets and liabilities, marking its fourth strategic acquisition since 2016 and solidifying its position as one of Tanzania's top five banks.
Following a binding offer signed in 2024 and subsequent regulatory approvals, the deal is a major step forward in Exim Bank's expansion strategy, which has already seen the bank acquire UBL Bank Tanzania (2019), FNB Bank Tanzania (2022), and establish a representative office in Ethiopia.
The purchase is in line with Exim Bank's larger plan to improve Tanzania's banking sector through merging. This is true even though Tanzania's economy isn't as big as those in South Africa and Nigeria.
CEO Jaffari Matundu underscored the significance of the acquisition in transforming banking practices in Tanzania and its neighboring areas.
Elshwere, Small businesses in Kenya face fines of Sh500,000 plus daily penalties of Sh50,000 and potential loss of banking services if they fail to comply with new anti-money laundering rules effective since November 2024.
Banks are requiring MSMEs to disclose beneficial owners' details and financial accounts as part of enhanced customer due diligence measures.
The regulations, affecting nearly 7.4 million MSMEs, require businesses to provide personal information including names, addresses, PINs, and proof of residence, though firms with annual sales below Sh50 million are exempt from providing audited accounts.
The measures follow Kenya's placement on the FATF's grey list and aim to prevent money laundering schemes like the 2015 NYS scandal, where banks were fined Sh800 million for failing to report suspicious transactions.
While the Kenya Bankers Association notes requirements apply only to registered businesses, the rules have raised concerns about tax implications and government access to financial information.
Although the compliance burden on MSMEs is undeniable, it is critical to view these regulations in the larger context of protecting the integrity of our financial system and cultivating a more transparent and accountable business environment.
Still on Africa, Ethiopia's parliament passed landmark legislation opening its banking sector to foreign competition, ending decades of state dominance led by the Commercial Bank of Ethiopia.
The reform, part of Prime Minister Abiy Ahmed's market liberalization agenda since 2018, caps foreign ownership at 40% and aims to attract international investment to Africa's second-largest country by population
The move comes as Ethiopia negotiates a $10.7 billion financing package with the World Bank and IMF following its 2023 Eurobond default, with liberalization being a key condition.
The reform has attracted interest from regional players like FirstBank of Nigeria and potential investors from Kenya, South Africa, China, Morocco, and the UAE.
Industry experts, view this as a game-changing opportunity for Ethiopia's 125-million-person market, particularly in fintech development.
The initiative follows other market reforms, including currency devaluation and the reopening of the Ethiopian Securities Exchange after 50 years.
Finally, South African central bank governor Lesetja Kganyago challenged crypto industry leaders at Davos, criticizing their lobbying of U.S. policymakers and questioning bitcoin's validity as a reserve asset.
His comments, telling a Davos panel event that bitcoin made no more sense as a reserve asset than beef or apples, came as bitcoin reached record highs above $100,000 following Donald Trump's election, with industry leaders celebrating the prospect of crypto-friendly policies.
Coinbase CEO Brian Armstrong praised Trump's promise to become the "first crypto president" and plans for a U.S. government bitcoin stockpile, while acknowledging the industry's $119 million investment in pro-crypto congressional candidates.
The debate at the World Economic Forum highlighted the divide between traditional banking and crypto advocates, with Franklin Templeton CEO Jennifer Johnson noting the "parallel universes" of institutional investors and cryptocurrency markets.
Despite initial price cooling after Trump's inauguration speech omitted crypto references, industry optimism remains high, marking a significant recovery from the sector's 2022 crisis.