crdb bank annual report-2009

2009

TAARIFA YA MWAKATAARIFA YA MWAKA

Annual ReportAnnual Report

We have been able to maintain our

attributes of Progress, Stability and Security,

even during stormy economic times.

Taarifa ya Mwaka [Annual ReportAnnual Report] 2009 1

Vielelezo Muhimu vya KifedhaFinancial Highlights

TAARIFA YA KIFEDHA/FINANCIAL DATA 2009 2008

STATEMENT OF FINANCIAL POSITION (in Tshs "000")

Jumla ya Rasilimali/Total assets 1,854,867,005 1,449,800,428

Jumla ya Mikopo/Total loans and net advances to customers 949,505,036 836,803,220

Jumla ya Madeni/Total liabilities 1,647,092,866 1,308,867,793

Amana/Deposits 1,621,018,882 1,273,081,596

Mtaji wa wanahisa/Shareholders’ funds 207,774,139 140,932,635

TAARIFA YA MAPATO/STATEMENT OF COMPREHENSIVE INCOME (in Tshs 000")

Mapato halisi ya Riba/Net interest income 109,967,937 91,434,303

Mapato ya Ada na Kamisheni/Net fee and commission income 39,110,882 30,224,200

Faida halisi/Net pro�t 45,824,636 40,508,901

Faida kwa ajili ya wanahisa wa Kampuni mama/

Net pro�t attributable to equity owners of the parent company 45,824,636 40,508,901

VIASHIRIA VYA UTENDAJI/PERFORMANCE INDICATORS

Rejesho kwa wastani wa rasilimali zote/Return on average total assets 4% 5%

Faida kwenye riba/Net interest margin 10% 10%

Uwiano wa gharama kwa mapato/Cost-to-income ratio 52% 52%

Kipato kwa hisa/Basic Earning per share 22 19

KIWANGO CHA RASILIMALI/ASSET QUALITY

Uwiano wa mikopo isiyofaa/Non-performing loans ("NPL") ratio 6% 4%

Tengo kwa mikopo isiyofaa/Allowance to NPL 30% 13%

Uwiano wa tengo kwa mikopo yote/Allowance to total loan ratio 2% 1%

VIASHIRIA VYA TOSHO LA MTAJI/CAPITAL ADEQUACY INDICATORS

Uwiano wa tosho la mtaji mkuu/Core capital adequacy ratio 21% 17%

Uwiano wa tosho la mtaji/Total Capital adequacy ratio 21% 17%

Uwiano wa jumla ya mtaji kwa jumla ya rasilimali/Total equity to total assets ratio 11% 10%

Viashiria vya wadhibiti sekta Viwango vya wadhibitiRegulatory Indicators Regulatory Standards 2009 2008

Uwiano wa Ukwasi/Liquidity Ratio >=20% 32% 25%

Uwiano wa Mikopo kwa Amana/Loan-to-deposit Ratio <=80% 60% 66%

Taarifa ya Mwaka [Annual ReportAnnual Report] 20092

Vielelezo Muhimu vya KifedhaFinancial Highlights

2005

18,680

744,612

898,303

44,777

69,406

104,628

140,933

207,774

1,142,6691,449,800

1,854,867

197,637

405,772

588,347

836,803

26,484

40,509

45,825

37,325

2006 2007 2008 2009 2005 2006 2007 2008 2009

2005 2006 2007 2008 2009 2005 2006 2007 2008 2009

FAIDA HALISINET PROFIT

RASILIMALITOTAL ASSETS

MTAJI WA WANAHISASHAREHOLDERS’ EQUITY

MIKOPOTOTAL LOANS

949,505

Tarakimu/Figures: Tsh. 000,000


Wakurugenzi wa BodiBoard of Directors

Bw. Martin J. MmariMwenyekitiBoard Chairman

Dk. Charles S. KimeiMkurugenzi MtendajiManaging Director

Bw. Jens Ole PedersenNaibu Mkurugenzi MtendajiDeputy Managing Director

Bi. Joyce W. Luhanga MjumbeMember

Bw. Boniface C. MuhegiMjumbeMember


Bw. Bede P. LyimoMjumbeMember

Bw. Kai Kristo�ersenMjumbeMember

Bi. Joyce N. Nyanza MjumbeMember

Bw. Joseph C. MachangeMjumbeMember

Bi. Lydia M. JoachimMjumbeMember

Bw. Ally H. LaayMjumbeMember

Dk. Sylvia TemuMjumbeMember

Bw. Juma A. AbdulrahmanMjumbeMember


Barua ya kuwasilishaLetter of Transmittal

Wapendwa Wanahisa na Wateja Wetu,

Ninayo furaha kuwasilisha kwenu Taarifa ya Mwaka 2009. Taarifa hii ina hesabu za mwaka

ulioishia tarehe 31 Disemba 2009, matukio na maendeleo muhimu pamoja na matarajio ya

biashara ya hapo baadaye.

Wenu mwaminifu,

Martin Mmari,

Mwenyekiti wa Bodi ya Wakurugenzi,

Benki ya CRDB

Dear Shareholders and Customers,

It is a pleasure to present to you the Bank’s Annual Report for the year 2009. The report contains

the annual accounts, major events, achievements and future business prospects.

Yours faithfully,

Martin Mmari

Chairman of the Board of Directors

CRDB Bank Plc

CRDB Bank Plc Taarifa ya Mwaka [ Annual Report ] - 2009CRDB Bank Plc Taarifa ya Mwaka [ Annual Report ] - 2009Taarifa ya Mwaka [Annual ReportAnnual Report] 2009 7

DiraBenki inayoongoza TanzaniaKuwa benki inayoongoza, inayozingatia mahitaji ya wateja na kuwapa wanahisa faida nzuri.

AzmaHuduma bora za kibenkiKutoa huduma bora na kwa gharama nafuu, ikizingatia wateja wadogo na wa kati, na huduma

binafsi kwa makampuni makubwa huku tukidumisha imani ya wadau wetu.

VisionThe leading Bank in TanzaniaTo be the leading bank which is customer need driven with competitive return to shareholders.

MissionQuality Banking ServiceTo provide quality and competitive �nancial services with a strong focus on retail banking and

customized corporate and institutional services while ensuring con�dence and trust from

stakeholders.

Dira na AzmaVision and Mission


Martin Mmari,

Mwenyekiti wa Bodi ya Wakurugenzi

Chairman of the Board of Directors

Pamoja na hali ya uchumi kuwa haitabiriki

kwa kipindi cha 2010, Benki itaendelea

kujizatiti katika kusimamia mfumo wake wa

kibiashara, huku ikijikita katika kupata fursa

mpya za biashara. Benki itaendelea

kutumia viashiria vipya vya kubaini athari

za kibiashara ili kulinda mtaji wa biashara

kwa maslahi ya wateja na wanahisa.

“

“


Kwa niaba ya Bodi ya Wakurugenzi wa Benki ya CRDB, ninayofuraha kutoa ripoti ya Benki kwa mwaka ulioishia tarehe 31 Disemba 2009.

Mazingira ya BiasharaKwa ujumla mwaka 2009 ulikuwa na mazingira magumu sana ya biashara kutokana na mtikisiko wa uchumi duniani ulioanza mapema mwaka 2007. Mtikisiko huu ulianza kwa kuzikumba nchi zilizoendelea za Ulaya na Marekani. Mabenki mengi ya Ulaya yakiongozwa na ya Marekani yalishusha riba zao katika masoko ya fedha na mitaji, hata hivyo hali hii haikusaidia kuimarisha uchumi wa dunia.

Mdororo wa uchumi wa dunia, ulisababisha mataifa yaliyoendelea, kupunguza uagizaji wa bidhaa mbalimbali kutoka mataifa yanayoendelea ikiwemo Tanzania. Hali hii ilisababisha mazao ya biashara hususani pamba, kahawa, korosho na biashara ya utalii kuathiriwa sana.

Mwaka 2009 ulishuhudia changamoto nyingi katika uendeshaji wa biashara katika masoko ya fedha. Hali ilikuwa ya mkanganyiko na mparaganyiko mkubwa katika biashara ya kimataifa na kitaifa pia. Katika robo ya kwanza ya mwaka 2009, kulikuwa na mfumuko mkubwa wa bei, na thamani ya shilingi ilishuka.

Benki ililazimika kutumia mfumo mpya wa kibiashara ili kupunguza athari za mdororo wa uchumi duniani. Sambamba na hili, Benki iliweka mikakati mipya ili kutambua viashiria hatari katika mazingira halisi ya biashara. Kwa muktadha huu, mwaka 2009, Benki iliboresha taratibu na masharti katika utoaji mikopo kwa wateja wakubwa na wadogo ili kulinda mtaji wa biashara. Pia Benki iliweka mikakati mahsusi ya kupunguza gharama mbalimbali za uendeshaji na kuboresha usimamizi wa makusanyo ya ada mbalimbali. Pia Benki ilitumia fursa iliyotolewa na serikali mwezi Juni 2009 katika kuwadhamini wanunuzi wa kahawa na pamba, ili kulinda mtaji wa Benki usiathiriwe na mdororo wa uchumi duniani. Mkakati wa serikali wa kunusuru uchumi kutokana na athari za mdororo wa masoko ya fedha duniani ulitangazwa na Mh. Rais Jakaya Mrisho Kikwete.

MatokeoPamoja na mtikisiko ulioukumba uchumi wa dunia, Benki ya CRDB, ilifanya vizuri katika biashara yake, hata kuendelea kuwa benki bora nchini. Katika kipindi hiki, rasilimali za Benki ziliongezeka kwa asilimia 28, kutoka shilingi 1,450 bilioni mwishoni mwa mwezi Disemba 2008 mpaka ku�kia shilingi 1,855 bilioni mwaka 2009. Amana ziliongezeka kwa asilimia 27.3 mpaka ku�kia shilingi 1,621 bilioni mwishoni mwa mwezi Disemba 2009.

Taarifa ya Mwenyekiti


Benki ilipata faida kabla ya kodi ya shilingi 62 bilioni ikilinganishwa na faida kabla ya kodi ya shilingi 60 bilioni katika mwaka wa 2008. Baada ya kodi, faida ilikuwa shilingi 46 bilioni ikiwa ni ongezeko la asilimia 15 ikilinganishwa na shilingi 40.5 bilioni zilizopatikana mwaka wa 2008.

Maendeleo ya BiasharaBenki imeendelea kutekeleza mikakati kwa lengo la kukuza biashara ya Benki kwa wateja wadogo na wakubwa kama ilivyokusudiwa kwenye mkakati wa biashara wa Benki. Mafanikio makubwa yaliyo�kiwa ni pamoja na kupanua njia za ku�kisha huduma kwa wateja kwa kufungua matawi mapya, kuongezeka asasi zinazoshirikiana na Benki, kuweka mashine mpya za kutolea fedha (ATMs) na kusambaza mashine za malipo (Point of Sale machines). Pia bidhaa na huduma za Benki zimeendelea kupitiwa na kuboreshwa ili kukidhi matakwa ya wateja.

Mwaka 2009, Benki ilipata mafanikio kwa kuorodheshwa katika Soko la Hisa la Dar es Salaam (DSE). Mchakato wa kuorodheshwa katika soko la hisa ulifuatia utekelezaji wa maazimio ya Mkutano Mkuu maalum wa wanahisa uliofanyika Disemba 6, 2008. Utekelezaji wa maazimio ya Mkutano Mkuu maalum wa wanahisa ulikwenda sambamba na gawio la hisa 1 ya bonasi kwa kila hisa 1, pia gawio la hisa stahili 1 kwa kila hisa 10, pia hisa kugawanywa katika mafungu manne sanjari na IPO. Benki iliorodheshwa rasmi katika soko la hisa tarehe Juni 17, 2009, kwa bei ya IPO ya shilingi 150 kwa hisa.

GawioBodi ya Wakurugenzi itapendekeza kwenye Mkutano Mkuu wa wanahisa gawio la shilingi 7 kwa hisa. Jumla ya gawio ni shilingi 15.2 bilioni, ikiwa ni ongezeko la mara tatu na nusu katika mwaka likilinganishwa na jumla ya gawio la shilingi 4.4 bilioni lililotolewa mwaka 2008. Bodi ya Wakurugenzi ilipitia sera ya gawio na kuweka ukomo wa chini wa asilimia 35 ya faida ya mwaka, hali mradi matakwa ya sheria yawe yamezingatiwa.

MatarajioPamoja na hali ya uchumi kuwa haitabiriki kwa kipindi cha mwaka 2010, Benki itaendelea kujizatiti katika kusimamia mfumo wake wa biashara, huku ikijikita katika kupata fursa mpya za kibiashara. Benki itaendelea kutumia viashiria vipya vya kubaini athari za kibiashara ili kulinda mtaji wa biashara kwa maslahi ya wateja na wanahisa.


Chairman's Statement


Business DevelopmentDuring the year, the Bank continued to pursue strategies aimed at ensuring growth in retail and corporate banking business as envisaged in the Bank’s Business Strategy. Key milestones include expansion of service delivery channels by opening new branches, recruitment of new micro�nance partners, installation of new ATMs and Point of Sale machines. Also, products and services were repackaged and enhanced in line with changing customer demands. During the year, the Bank also achieved the milestone of getting its shares listed at the Dar es Salaam Stock Exchange (DSE). The process started with implementation of the resolutions made at the Extra-Ordinary Shareholders’ Meeting held on December 6, 2008, including o�er of bonus shares at a rate of 1 to1; a rights issue at a rate of 1 for each of 10 shares held; split of shares into 4; and an IPO (public o�er). The actual listing took place on 17 June 2009 at IPO price of Tshs. 150 per share.

DividendThe Board will recommend to the Annual General Meeting a dividend of Tshs. 7 per share. Total amount of dividend to be paid out is Tshs.15.2 billion, substantially higher than Tshs. 4.4 billion paid in 2008. This translate to increase of dividend by three and half times.

The Board has reviewed Dividend Policy in 2010 to the e�ect that annual dividend payment will at least be 35 percent of net pro�t earned, provided that business and regulatory requirements are met.

Prospects for 2010In 2010 and despite unpredictable economic conditions, CRDB Bank will remain focused on maintaining its core business model and developing opportunities for growth on a conservative and sustainable basis. This will be undertaken within a framework of prudent risk management to ensure capital and liquidity by protection and value creation for all our customers and shareholders.

Changes in the BoardI would like to report changes in the Board during the year. At the Annual General Meeting held on 20th June 2009, Ms. Joyce W. Luhanga, Dr. Sylvia S. Temu and Mr. Joseph C. Machange retired. Ms. Joyce W. Luhanga and Mr. Joseph C. Machange o�ered for re-election and were duly re-elected. Mr. Juma A. Abdulrahman was elected for the �rst time, I welcome him to the Board. Dr. Sylvia S. Temu served in the Board since 2004, I wish to recognize her valuable contributions to the Board and wish her well in her future endeavors.


Acknowledgement I am most thankful to the members of the Board of Directors for strong support they have continued to give me. I would like to extend my appreciation to our customers, the Government, the Bank of Tanzania and shareholders for their ongoing support and to the management and sta� whose commitment and professionalism underpins our success.

It is my hope that the Bank will be able to sustain its performance in the years ahead despite economic challenges.

Martin MmariChairmanCRDB Bank Board of Directors


Charles Kimei

Mkurugenzi Mtendaji

Managing Director


Mwaka 2009 ulikuwa ni mwaka mgumu kibiashara katika masoko ya taasisi za kifedha za kitaifa na kimataifa. Mtikisiko wa kiuchumi duniani uliziathiri sana taasisi za fedha duniani kote. Benki ya CRDB pia iliathiriwa na mtikisiko wa masoko ya fedha na uchumi duniani. Benki ya CRDB ilijizatiti kupunguza athari mbaya za mtikisiko wa uchumi duniani katika biashara ili mahesabu na mizania (balance sheet) yake isivurugike.

Uwezo wa Benki katika kudhibiti athari za mtikisiko wa uchumi duniani, umedhihirisha kwamba Benki ya CRDB imejengwa katika misingi imara ya kanuni za kibenki. Pia uimara wa Benki katikati ya msukosuko wa uchumi duniani umedhihirisha ubora wa mpango mkakati wa Benki katika kuendesha na kusimamia utendaji kibiashara. Mpango mkakati wa Benki sanjari na mfumo wake unalenga kuendesha biashara katika mifumo tofauti tofauti kuhakikisha kwamba rasilimali za Benki zimewekezwa kwenye mikondo ya aina nyingi pamoja na kuwahudumia wateja reja reja (retail banking). Katika misingi hii tunao uwezo wa kuchukua tahadhari katika kudhibiti athari za mtikisiko katika mikopo, ukwasi (liquidity), ubora wa amana, kudhibiti hatari katika biashara na gharama za uendeshaji biashara bila kubadili msingi wa dira yetu.

Benki iliendelea kutekeleza mikakati yake kibiashara kwa kutumia teknolojia bora iliyopo katika soko. Kwa mantiki hii, mwaka 2009 katika robo ya kwanza, Benki iliboresha mfumo wake wa kuendesha shughuli zake na kuweka mfumo wa kisasa zaidi katika idara ya Hazina na ile ihusikanayo na biashara za kimataifa, yaani Trade Finance. Sambamba na maboresho haya, Benki iliboresha huduma za kibenki kwa njia ya simu za mkononi kwa kuweka mfumo mpya. Huduma hii ilipewa nembo ya ‘CRDB SimBanking’. Katika robo ya pili ya mwaka ubadilishaji wa mtambo mkuu wa kompyuta wa Benki wa ‘Bankmaster’ kwenda mfumo mpya wa kisasa zaidi wenye chapa ya “The Bank Fusion - Universal Banking” ulianza .

Katika mwaka 2009, Benki ilipata mafanikio makubwa ikiwa ni pamoja na kusogeza huduma zake karibu zaidi na wateja kwa kupanua mtandao wake kwa kasi zaidi. Mpaka mwishoni mwa mwaka 2009, matawi mapya 6 yalikuwa yamefunguliwa na matawi mengine 10 yalikuwa katika hatua mbalimbali za ujenzi. Aidha, matawi mawili ya Songea na Shinyanga yalifanyiwa ukarabati mkubwa, yakaboreshwa na kufanywa ya kisasa zaidi. Mashine za kutolea fedha (ATMs) 32 zikiwemo za Easy Deposit yaani zile ATM ambazo mteja anaweza kuweka fedha katika akaunti yake ziliongezwa katika mtandao wa Benki na kufanya jumla ya ATM zinazofanya kazi kuwa 132. Pia huduma za Micro�nance ziliendelea kuimarika ambapo asasi shiriki ziliongezeka kutoka 376 mwaka 2008 mpaka ku�kia 425 mwaka 2009. Hii inadhihirisha dhamira ya Benki kuwa�kia watu wengi zaidi ambao bado hawajawa na huduma za kibenki. Huduma za biashara kwa wateja wadogo na wa kati (SMEs) ziliendelea kuboreshwa katika matawi yote ya Benki. Mikopo iliyotolewa kwa wateja iliongezeka kwa asilimia 95 kutoka shilingi bilioni 60 mwaka 2008 hadi shilingi bilioni 118.1 mwishoni mwa mwaka 2009.

Taarifa ya Mkurugenzi Mtendaji


Kwa upande wa maendeleo ya bidhaa na huduma za Benki, mkazo ulikuwa katika kuzipitia upya bidhaa zetu ili kuzipa ubora ambao utakidhi mahitaji ya wateja kwa sasa. Benki ilizindua mpango maalum wa kujiwekea akiba kwa wanawake, kwa kupitia akaunti maalum ya Malkia. Kwa mara ya kwanza Benki ilianzisha Mkataba wa Huduma kwa Wateja (Customer Service Charter) na kutoa msisitizo kwa kila mfanyakazi wa Benki aishi na kufanya kazi kwa kuzingatia ahadi zilizo kwenye ‘Customer Service Charter’.

Benki ya CRDB ilifanikiwa kumaliza mwaka kwa faida, ambapo faida kabla ya kodi ilikuwa shilingi bilioni 62 ikilinganishwa na shilingi bilioni 60 kwa mwaka 2008. Faida iliyopatikana mwaka 2009 ilitokana na mpango mkakati wa Benki katika kudhibiti hatari (risks) zote katika biashara na masoko kwa ujumla. Benki iliongeza tengo la fedha (provisions) kukidhi hatari ya hasara inayoweza kutokana na mikopo na ku�kia shilingi bilioni 18.2 ikilinganishwa na shilingi bilioni 5.0 mwaka 2008. Kiasi hiki cha tengo kilikuwa sawa na asilimia 1.9 ya mikopo iliyotolewa ya jumla ya shilingi bilioni 950 ku�kia Disemba 2009. Jumla ya rasilimali ziliongezeka kutokana na ongezeko la amana pamoja na usimamizi bora wa madeni. Amana za wateja ziliongezeka kwa asilimia 27.3 mpaka shilingi bilioni 1,621, hii imedhihirisha imani kubwa waliyonayo wateja kwa Benki ya CRDB. Rasilimali ziliongezeka kwa asilimia 28 mpaka ku�ka shilingi bilioni 1,855 kutoka shilingi bilioni 1,449 mwaka 2008. Mikopo iliongezeka kwa asilimia 14 na ku�kia shilingi bilioni 950 ikilinganishwa na shilingi bilioni 837 mwaka 2008.

Mwaka 2010 unatarajiwa kuwa na changamoto nyingi zaidi. Hata hivyo kwa kuwa na teknolojia mpya iliyo bora tangu 2009, mazingira mazuri ya biashara, na timu imara ya wafanyakazi makini waliobobea katika taaluma ya kibenki, tuna uhakika wa kufanikiwa pamoja na changamoto zilizopo. Tumejizatiti kuendelea kutekeleza mikakati na kanuni endelevu za kibiashara, kutimiza malengo tuliojiwekea, kuwa wabunifu na kuendelea kuboresha huduma kwa wateja. Tutaendelea kuimarisha ufanisi kitaaluma na kutilia mkazo maadili mema ya utendaji kazi kwa wafanyakazi. Tutaendelea kudhibiti hatari (risks) kwa biashara zetu na kuendelea kufanya upembuzi yakinifu ili kupata maeneo muafaka kwa biashara, sanjari na kudhibiti gharama za uendeshaji. Mikakati yote hii ni katika kulinda mtaji wa biashara wa Benki, na kuzalisha faida na gawio zuri kwa wanahisa wetu.

Ni matumaini yangu kuwa Bodi ya Wakurugenzi, wanahisa na wafanyakazi wataunga mkono jitihada hizi zote. Napenda kuchukua fursa hii kuwashukuru wadau wote, pia wateja wetu, serikali na wasimamizi wa taasisi za kifedha (regulators) kwa imani yao kwetu na kwa mchango wao kwa mafanikio yote tuliyopata mwaka 2009.

Charles S. KimeiMkurugenzi MtendajiCharles S. Kimei


The year 2009 was an exceptional year marked by the global �nancial crisis and challenges for markets and �nancial institutions everywhere in the world. While CRDB Bank was not immune from the e�ects of the crisis, our focus from early in the year was geared at anticipating and mitigating, to the extent possible, its adverse impact on the Bank’s �nancial performance and balance sheet. The Bank’s ability to wither the storm re�ects the strong foundations on which we have built our Bank. It also demonstrates the robustness of our business strategy and model which focuses on portfolio diversi�cation and retail banking. We were therefore able to respond to the crisis by taking precautionary and corrective measures with particular focus on loans, liquidity, asset quality, risk and cost management without changing our basic strategies.

The Bank continued to implement, among others, its key strategy of making sure that the operations are supported by the cutting edge technology available in the market. Pursuant to this the Bank completed in the �rst quarter of 2009 the overhaul and automation of processes in the Treasury and Trade Finance units, and upgrade of its SMS Banking to new platform and re-branding it ‘CRDB SimBanking’. This latter product enables customers to bank through their cellular phones. Moreover, implementation of a new Core Banking System - the Bank Fusion-Universal Banking (BFUB) was initiated in the second quarter of the year.

In the year under review, CRDB Bank achieved several milestones - and I would mention only a few here. First, in its e�orts to bring services closer to customers the Bank speeded up network expansion. As at the end of 2009, six new branches had been opened while another 10 were in various stages of construction. Moreover, 2 existing branches (Shinyanga and Songea) were refurbished and expanded; 32 ATMs, including Easy Deposit ATMs that accept cash deposits, were added to the network bringing the total operating ATMs to 132. The number of partnering Micro�nance Institutions (MFIs) rose from 376 in 2008 to 425 in 2009, demonstrating our commitment to serve the broader Tanzanian population that has never seen banking before. The specially-tailored SME programme was fully mainstreamed in all branches with its loan portfolio increasing by almost 95% from Tshs. 60 billion in 2008 to Tshs.118.1 billion at end of 2009.

In the area of product development focus was put on repackaging and enhancing features of existing products in line with changing customer demands. The Bank introduced a special saving plan account targeting, but not limited to, women with a brand name of “Malkia Account”. For the �rst time also, the Bank initiated a Customer Service Charter and sensitized all its sta� to live by the promise made therein to customers.

CRDB Bank was able to end the year on a positive pro�tability note, posting a pre- tax pro�t of Tshs. 62 billion compared to Tshs. 60 billion for 2008. The Bank’s pro�ts for 2009 were impacted by our conservative stance towards prevailing market and business risks. The Bank increased its

Managing Director’s Report


provisions to Tshs. 18.2 billion compared to Tshs. 5.0 billion in 2008 to adequately cover identi�ed loan risks. This decision will maintain our speci�c provisions against identi�ed problem loans at 1.9% of total outstanding loans and overdrafts of Tshs. 950 billion at December 2009.

Assets growth was accelerated with focus directed towards deposit accumulation and liability management. As a result, customer deposits increased by a solid 28% to Tshs. 1,621 billion, re�ecting our customers’ strong underlying con�dence in the Bank, while total assets growth reached Tshs. 1,855 billion from Tshs.1,449 billion recorded in 2008. The net loan portfolio grew by 14% to Tshs. 950 billion compared to Tshs. 837 billion in 2008.

In 2010, we still expect to face unprecedented challenges. However, with the sound business platform we have created, supported by the IT platforms that we have implemented in 2009 as well as strong, professional and committed workforce, we are sure to emerge as strong winners from these challenges. We will pursue our well known principles: stay focused on planned targets; remain innovative and pro-active in customer service improvement; and observe professionalism and integrity. We will continue our e�ort on risk mitigation, and target selective business growth opportunities while implementing cost management measures across all areas of our business and ensuring that capital preservation is always the foremost priority.

As always, I am reassured that in these endeavors we will get guidance and strong support from our Board of Directors, shareholders and sta�. I want to extend my sincere thanks to all of them, and appreciation to our customers, the Government and all our Regulators for their loyalty and invaluable contribution to our achievements in 2009.

Charles S. Kimei (Dr)CEO & Managing Director

Taarifa ya Mwaka [ ] 200920

• Bure• Ukiwa popote duniani• Kupitia intaneti ya simu


SHUGHULI ZA MWAKA

MAPITIO YA UCHUMI

Hali ya Uchumi Kwa zaidi ya miaka minne mfululizo uchumi wa Tanzania ulikua kwa wastani wa asilimia 7.2 kwa mwaka. Kutokana mgogoro wa kifedha duniani, ukuaji wa uchumi wa Tanzania ulipungua mpaka asilimia 5.6 kwa mwaka 2009. Mgogoro wa uchumi duniani ulipelekea kupungua kwa mahitaji na bei za mazao makuu ya biashara yauzwayo nchi za nje hasa pamba, kahawa na mazao ya bustani (horticulture). Zaidi ya hayo, mapato yatokanayo na biashara za utalii na usa�rishaji na pia uwekezaji toka nje uliathirika vibaya na hali hiyo. Kwa mwaka 2009, serikali iliandaa mpango wa kuchochea uchumi na kupunguza athari zitokanazo na mgogoro wa uchumi kwa taasisi za fedha na hasa benki za biashara. Matunda ya juhudi za serikali yalianza kuonekana mwishoni mwa mwaka 2009. Moja ya fundisho la mgogoro wa uchumi duniani ni kuwa uchumi wa nchi unatawaliwa na sekta za kilimo na madini na hii inalazimisha Benki na taasisi za kifedha kuandaa sera na mikakati ya kutoa mikopo na huduma nyingine za kifedha kwa sekta hizi.

Matarajio ya Ukuaji wa Uchumi kwa Mwaka 2010Uwekezaji wa kutoka nje, biashara na utalii kwa ujumla vinatarajiwa kuanza kukua katika kipindi cha mwaka 2010. Hata hivyo, ukuaji uliodorora wa uchumi wa dunia na mahitaji madogo kwa mazao ya kilimo vitaendelea kuathiri ukuaji wa uchumi wa Tanzania. Sekta za ujenzi, madini pamoja na huduma zinatarajiwa kufanya vizuri. Ukuaji katika sekta ya ujenzi unatarajiwa kutokana na misaada toka nje hasa katika ujenzi wa miundombinu ya barabara na nishati. Ukuaji katika sekta ya huduma unatarajiwa kuchangiwa zaidi na ukuaji wa mawasiliano ya simu, usa�rishaji na huduma za kifedha. Pato la taifa linatarajiwa kukua kwa kiwango cha asilimia 6.5 kwa mwaka 2010 ikilinganishwa na asilimia 5.6 kwa mwaka 2009.

Maendeleo Mengineyo ya Kiuchumi

Ujazi wa Fedha na Sarafu za NchiniKatika kipindi cha mwaka 2009, ongezeko la fedha nchini lilikuwa la wastani, kutokana na ukuaji mdogo wa mikopo iliyotolewa na mabenki kwa sekta binafsi. Kwa ujumla, wastani wa ukuaji wa mikopo kwa mwaka kwa sekta binafsi ulipungua kutoka asilimia 26 mwaka 2008 mpaka asilimia 17.5 kwa mwaka 2009. Ongezeko la ujazi wa fedha kwa tafsiri pana (M3) lili�kia asilimia 18.4 ukilinganisha na ongezeko la asilimia 25.9 mwaka 2008.

Hali ya Mfumuko wa BeiKiwango cha mfumuko wa bei kwa mwaka kimekuwa kikibadilika mwezi hadi mwezi hadi ku�kia Disemba 2009; lakini kwa wastani kilikuwa ni asilimia 12.5. Ongezeko la mfumuko wa bei lilichangiwa hasa na ongezeko la bei za vyakula. Licha ya mavuno ya kutosha mwaka 2009, bei za vyakula zilikuwa juu kutokana na gharama za usa�rishaji na miundombinu mibovu pamoja na uuzaji wa vyakula nchi jirani ambazo zilikuwa na uhaba wa chakula. Pamoja na athari


zinazotokana na miundombinu na sera ya soko la vyakula kuendelea kuweko, mwenendo unaashiria kuimarika kwa bei za mafuta duniani ambako kutachangia kupungua kwa mfumuko wa bei mwaka 2010.

UTENDAJI WA BENKI YA CRDB MWAKA 2009

HUDUMA ZA KIBENKI KWA WATEJA WA REJAREJAMwaka 2009 ulikuwa wa kuimarisha ukuaji na uongezekaji wa huduma za kibenki na uwezo wa Benki kutoa huduma kwa wateja binafsi na wafanyabiashara wadogo wadogo. Ili kuboresha huduma kwa kundi hili la wateja, Benki ilitekeleza mikakati mingi ikiwemo ufunguzi wa matawi mapya, uingizaji sokoni huduma bunifu na mipango iliyowezesha Benki kujijenga zaidi kwenye soko kama Benki imara na endelevu. Benki imeendelea na mipango yake miwili mikubwa ya kuboresha huduma kwa wateja katika matawi pamoja na kuwaongezea wateja huduma bora zaidi za kiubunifu zikiambatana na njia mbadala za utoaji wa huduma ili kukidhi mahitaji yao (internet banking, SimBanking na POS). Mabadiliko ya kiteknolojia yameiwezesha Benki kupanua mtandao wake wa mawasiliano kwa matawi yote hivyo kuongeza tija katika kufanikisha miamala ya kibenki na kuziongezea uwezo mashine za kuweka na kutolea fedha (ATM).

Benki imeanza kukamilisha mabadiliko ya mfumo wake wa utoaji huduma wenye lengo la kujumuisha na kurahisisha utoaji wa huduma katika matawi na benki nzima kwa ujumla. Mifumo hii itaiwezesha Benki kutoa huduma bora zaidi na zenye tija. Benki inategemea kuzindua rasmi mfumo huu katika robo ya kwanza ya mwaka 2010.

Upanuzi wa Mtandao wa BenkiMwaka 2009, Benki iliendeleza jitihada zake za kupanua mtandao wake wa matawi (ya kawaida na yanayotembea) ili kufanikisha azma yake ya kuwa na tawi katika nusu ya wilaya zote za nchi i�kapo mwaka 2012. Kwa mwaka huu wa 2009 Benki ilifungua matawi 6 ambayo ni: Marangu, Zanzibar, Kibaha, Kariakoo, Nyanza na Mabibo. Maendeleo haya yanaifanya Benki kushikilia nafasi ya pili kwa ukubwa kwa kipimo cha matawi. Kampuni yetu tanzu ya Micro�nance pia imeongeza asasi shiriki na ku�kia 425 toka 376 mwaka 2008.

Biashara ya KadiBiashara ya kadi imeendelea kuleta manufaa kwa wateja wa aina zote na mwaka 2009 ulikuwa ni mwaka ulioshuhudia mabadiliko makubwa katika biashara ya kadi, lengo likiwa ni kuongeza mapato, kuimarisha usalama kwa watumiaji na kuongeza ushindani kwa mawakala wa Benki kwa kutoa huduma kwa urahisi zaidi. Kadi za Benki ya CRDB zimefanyiwa marekebisho na kuweza kukidhi viwango vya kimataifa kwa usalama thabiti wa kadi ‘EMV compliance’ na sasa inawapa wateja wake wa TemboCardVisa kadi ambazo ni salama zaidi. TemboCardVisa ni kadi pekee Tanzania iliyopata uthibitisho kamili wa ‘EMV compliance’.


Kwa umakini mkubwa, Benki ililenga kuliteka soko la Zanzibar ambalo lina utajiri mkubwa wa biashara za utalii na burudani. Benki haikuwahi kuwa na mawakala wa biashara ya kadi visiwani humo kabla ya mwaka huu. Lakini kwa kipindi kifupi tu Benki imefanikiwa kupata mawakala zaidi ya 30. Biashara hii inatarajiwa kukua maradufu kutokana na ufunguzi wa tawi la Benki katika visiwa vya Zanzibar.

TemboCard za TRA na TANAPA ambazo ni kadi maalum kuhudumia wateja wa TANAPA na TRA ziliboreshwa ili kufanya kazi katika mfumo wa kisasa zaidi unaounganishwa moja kwa moja na mtandao wa Benki. Uboreshaji huu unawawezesha wateja wetu kupata taarifa za kila muamala upitao kwenye akaunti zao, papo kwa papo (online).

Hadi ku�kia mwishoni wa mwaka 2009, Benki ilikuwa na zaidi ya kadi 605,936 sokoni, na zaidi ya vituo 502 vya wafanyabiashara wanaopokea malipo kwa kutumia vifaa vya POS.

Biashara ya Wateja Wadogo na wa KatiMikakati iliyofanywa mwaka 2009 kwa wateja wadogo na wa kati ilisababisha ongezeko la wateja na biashara kwa Benki kwenye mikopo na amana na kuingiza mapato zaidi. Biashara ya huduma kwa wateja wadogo na wa kati imeendelea kukua kila mwaka kama ilivyojionyesha kwenye ongezeko la mikopo na amana kutoka kwenye kundi hili. Katika mikopo yenye thamani ya shilingi 99.8 bilioni iliyotolewa kwa sekta hii ni shilingi 40 billioni tu ambazo hazijarejeshwa (ambazo muda wa kurejeshwa hauja�ka). Hii inamaanisha kuwa mikopo hii imekuwa ikirejeshwa katika muda muafaka. Mwaka 2009, zaidi ya mikopo 1,156 yenye wastani wa shilingi 50 milioni kwa kila mkopo ilitolewa. Hili ni ongezeko la shilingi 20 milioni ikilinganishwa na wastani wa shilingi 30 milioni kwa mwaka uliopita. Riba na mapato mengine yatokanayo na mikopo yali�kia zaidi ya shilingi 6.75 bilioni kwa mwaka 2009. Hadi mwisho wa mwaka 2009, mikopo iliyo hatarini ilikuwa asilimia 1.58.

Mwaka 2009, Benki pia ilianzisha mfumo maalum wa kutoa mikopo kwa kununua korosho katika maghala mkoani Lindi. Hadi mwishoni mwa mwaka zaidi ya shilingi 7 bilioni zilikuwa zimetolewa kama mikopo kwa vyama vya wakulima mkoani humo. Mikopo yote pamoja na riba stahili ilirudishwa katika muda muafaka. Biashara hii ya kufadhili mauzo ya zao la korosho inatarajiwa kuongezeka sana kutokana na ukweli kuwa mfumo huu umeanza kufahamika kwa wadau wengi wa sekta hiyo.

Huduma za Wateja Wadogo Wadogo (Micro�nance)Kwa mwaka 2009, huduma kwa wateja wenye shughuli ndogo ndogo zilizotolewa na Kampuni Tanzu ya CRDB Micro�nance Company zilishuhudia ukuaji mkubwa na kusambaa kwake kwenye mikoa 23 kati ya mikoa 26 ya Tanzania na kuzi�kia wilaya 112 kati ya wilaya zote 136 za nchi hii kupitia asasi washirika 425 wanaowezesha utoaji wa huduma za kifedha kwa wajasiriamali


571,476 wadogo wadogo. Machache ya mafanikio yaliyopatikana ni yafuatayo:

• Ukopeshaji wa wanachama wa SACCOS wenye kujishughulisha na kilimo cha kisasa cha zabibu kwa kutumia mfumo wa umwagiliaji wa maji ya kunyunyiza (Drip Irrigation) wilayani Chamwino (Dodoma).

• Utekelezaji wa mpango unaolenga kufadhili kilimo katika vituo mbali mbali vya uongezaji thamani (value chain) kutoka hatua ya kulima hadi sokoni.

• Uboreshaji wa ufanisi wa asasi washirika kwa kuwasaidia kutekeleza programu ya kompyuta yenye kurahisisha uendeshaji wa masuala ya kifedha (CRDB Finance solution software). Suluhisho hili limeshapelekwa kwa zaidi ya asasi washirika 70 na kwa kiasi kikubwa umesaidia kudhibiti hatari na hivyo kuboresha utendaji.

• Uanzishwaji wa bidhaa rejareja za Bima.

• Kuanzishwa kwa kitengo cha huduma za kulipia za ushauri wa masuala ya utoaji huduma kwa wateja wadogo wadogo (Micro�nance Consultancy Unit).

HUDUMA KWA WATEJA WAKUBWAKatika mwaka 2009, mikopo kwa wateja wakubwa ilitawaliwa na ukuaji mdogo na uchaguzi wa maeneo au sekta za kuongezea mikopo na kuzingatia umuhimu wa kuendelea kufanya biashara na baadhi ya wateja waliopata misaada toka serikalini ili kuchochea mchango wao katika uchumi. Katika mwaka huu, Benki ilitekeleza mikakati iliyolenga kupunguza utoaji wa mikopo kwa sekta za pamba na kahawa ambazo zilipata hasara kubwa msimu wa 2008/2009. Wateja wetu wengi wakubwa hususani wakulima walijulishwa juu ya mwenendo wa kidunia (kimasoko) na umuhimu wa kuwa makini wanapotafuta mikopo ya kuendeleza shughuli zao.

Licha ya mtizamo wa kiha�dhina kuhusu mikopo, katika mwaka 2009 Benki iliendelea kutoa mikopo kwa sekta nyingine za uchumi na kuendelea kufadhili biashara za kimataifa kwa wateja wake katika tasnia mbalimbali za uchumi. Mojawapo ya mafanikio ya kujivunia ni juhudi za maa�sa biashara wa kimataifa na timu za maa�sa uhusiano wetu zilizopelekea kupata biashara na kutoa huduma kwa wateja muhimu katika sekta mbalimbali za uchumi.

Jumla ya mikopo ya Benki ilikua kwa asilimia 13.4 kutoka shilingi 836.8 bilioni mwishoni mwa mwezi Disemba, 2008 mpaka shilingi 949.5 bilioni mwezi Disemba 2009. Katika jumla hii mikopo kwa wateja wakubwa ilikua kwa asilimia 87.

Katika mwaka wa 2009 wafanyakazi wa kitengo cha Benki kinachohudumia wateja wa mashirika na taasisi kilifanikiwa kukusanya amana kutoka katika taasisi mbalimbali za kiserikali na zisizo za kiserikali kwa kutumia mtandao wetu wa kibenki nchini kote. Sehemu kubwa ya amana ya Benki ambazo zilikua kutoka shilingi 1.2 trilioni mnamo tarehe 31 Disemba, 2008 mpaka shilingi 1.6 trilioni tarehe 31 Disemba 2009 ilitokana na kundi hili la wateja.


MIKOPOMikopo sa� (pungufu tengo la mikopo chechefu na riba ambayo haijalipwa) ilikua kwa asilimia 13 kutoka shilingi bilioni 837 ilipo�ka tarehe 31 Disemba 2008 mpaka shilingi bilioni 949 ilipo�ka 31 Disemba 2009. Sekta ya kilimo iliendelea kuchukua sehemu kubwa ya mikopo kwa kuwa na asilimia 26 ya mikopo yote, ikifuatiwa na biashara (asilimia 17). Mgao wa mikopo kisekta ulikuwa kama ifuatavyo:

Sekta Disemba, 2008 Disemba, 2009

Salio % ya Nafasi Salio % ya Nafasi (Shilingi Jumla (Shilingi Jumla Millioni) Millioni)

Biashara 127,976 15% 2 66,052 17% 2

Asasi za fedha 59,356 7% 6 70,586 7% 5

Kukodisha 0 0% 0 0%

Viwanda 91,785 11% 5 68,217 7% 6

Kilimo, mifugo, misitu, 237,871 28% 1 257,020 26% 1

uwindaji na uvuvi

Usa�rishaji, mawasiliano 33,329 4% 7 57,809 6% 7

Migodi na machimbo ya mawe 7,144 1% 10,513 1% 11

Mali isiyohamishika 29,218 3% 9 32,255 3% 9

Ujenzi 12,464 1% 10 20,337 2% 10

Utalii, mahoteli na migahawa 31,114 4% 8 45,629 5% 8

Sekta ya huduma (hospitali, 110,385 13% 3 127,170 13% 3

umeme, maji na mashule)

Maghala 0 0% 0 0%

Mikopo kwa wateja binafsi 105,103 12% 4 121,453 12% 4

Sekta nyinginezo 2,449 0% 11 5,132 1% 12

Jumla gha� ya mikopo ya muda 848,194 100% 982,173 100%

mrefu na muda mfupi


UTENDAJI WA HAZINA YA BENKIKitengo cha Hazina cha Benki kina majukumu ya kusimamia gharama za fedha, ukwasi na hatari zitokanazo na shughuli za uwekezaji wa hazina ya Benki pamoja na biashara na mauzo ya fedha za ndani na nje. Idara hii ina vitengo vya soko la fedha, kubadili fedha za kigeni na mauzo. Kwa mwaka 2009, licha ya kushuka kwa riba kutokana na athari za msukosuko wa kifedha duniani Benki ilionyesha mafanikio ya kuridhisha katika mapato yake yanayotokana na kitengo cha Hazina kwa kuwekeza rasilimali kwenye fedha za kigeni.

Mapato ya biashara ya fedha za kigeni yali�kia shillingi bilioni 15.2 mwaka 2009 ikilinganishwa na shilingi bilioni 13 mwaka 2008 ikiwa ni sawa na ongezeko la asilimia 17. Mapato kutoka biashara ya fedha za ndani yali�kia shilingi bilioni 28.5 mwaka 2009 ikilinganishwa na shilingi bilioni 23 mwaka 2008 ikiwa ni ongezeko la asilimia 24. Mafanikio haya yali�kiwa katika kipindi cha mabadiliko ya soko la fedha la nje na kushuka kwa viwango vya riba katika soko la fedha nchini. Viwango vya mapato ya hawala na amana za serikali zilikuwa kwa asilimia 7.76 katika mwaka 2009 ikilinganishwa na asilimia 8.93 kwa mwaka 2008.

UDHIBITI WA HATARI YA HASARAKwa asili ya biashara za kibenki, udhibiti wa hatari ni kitu cha muhimu sana. Mwaka 2007 Benki ilianzisha kitengo maalumu kwa ajili ya kupunguza hasara zinazoweza kutokea na mwaka 2009 ulikuwa ni mwaka wake wa tatu wa ufanyaji kazi. Katika hali ya mgogoro wa kiuchumi, uchunguzi wa makini umekuwa ukifanyika katika kusimamia hatari katika utendaji, taratibu na utekelezaji wa sera mikakati ya biashara.

Mfumo mkuu mpya wa Teknohama ambao Benki imenunua kwa ajili ya shughuli za kibenki na biashara ya kifedha umekuwa imara na umepunguza hatari za utendaji kwa kutahadharisha uwezekano wa kutokea kwa hatari kwa muda muafaka. Kwa kuwa mabenki mengi yamekuwa yakiathirika na udanganyifu na wizi wa fedha na hasara zinazosababishwa na mambo mengine, kitengo cha udhibiti wa hatari ya hasara kilianzisha kiungo maalumu kilichoitwa ‘piga mbiu’ (whistle blowing) kwa ajili ya kutoa taarifa za wizi au uhalifu mwingine. Kiungo hiki kinaweza ku�kiwa na watu wote yaani wafanyakazi wa Benki na wateja wa Benki na inapatikana katika tovuti ya ndani ya Benki yaani intranet na tovuti ya Benki ya CRDB (www.crdbbank.com).

RASILIMALI WATUKu�kia Disemba 31, 2009, Benki ilikuwa na jumla ya wafanyakazi 1,311 kati yao 806 (62%) wakiwa wanaume na 505 (38%) wakiwa ni wanawake. Katika ngazi ya menejimenti asilimia 24.8 ni wanawake. Ongezeko la wafanyakazi kwa mwaka 2009 lilikuwa asilimia 5 ukilinganisha na asilimia 7.4 katika kipindi cha mwaka 2008. Ongezeka hili liliendana na ukuaji wa Benki na mtandao wake kwa ujumla.


Mwaka 2009, Benki iliajiri jumla ya wafanyakazi 136 ambao kati yao 96 (71%) ni wanaume na 40 (29%) wanawake. Wafanyakazi wengi walioajiriwa walikuwa ni wapya katika kazi (katika ngazi za ua�sa na uhasibu fedha). Benki huwapandisha wafanyakazi wake vyeo pale tu kunapokuwa na nafasi ya kufanya hivyo. Mwaka uliopita uajiri wa wafanyakazi katika ngazi ya juu ulikuwa ni mdogo sana.

Benki inatoa na itaendelea kutoa fursa sawa kwa watu wote katika ajira na itahakikisha kwamba mfanyakazi mwenye bidii na uwezo anateuliwa kushika nafasi yoyote bila ubaguzi wa aina yoyote kama vile jinsia, kabila, dini au ulemavu ambao hauzuii mtu kutimiza wajibu wake.

TEKNOHAMABenki ya CRDB hutumia teknolojia ya mawasiliano ya kompyuta kama zana ya kiushindani katika soko na pia kuongeza ufanisi na tija katika shughuli zake. Miundombinu ya kompyuta katika Benki ni ya uhakika na imetengenezwa kuweza kumudu ongezeko la wateja pamoja na la miamala. Benki imetumia teknohama hii katika kuboresha shughuli za kibenki, kubuni bidhaa na huduma mpya na hatimaye kuongeza thamani ya huduma/bidhaa zitolewazo kwa wateja.

Katika mwaka 2009, Benki ilijikita katika mradi wa kubadilisha mfumo wake mkuu wa kompyuta ambapo utabadilishwa kwa kuingiza mfumo mpya unaojulikana kama Universal Banking – Bank Fusion (UB). Mradi utakapokuwa umekamilika, Benki itakuwa na uwezo mkubwa katika kutoa huduma na kwa namna ambayo ni rahisi na kwa gharama nafuu.

Aidha Benki iliboresha mfumo wa kompyuta unaotumiwa na kitengo cha Biashara ya Kimataifa ujulikanao kama TI Plus. Sambamba na hilo, Benki ilitekeleza mfumo wa kusimamia shughuli za Idara ya Hazina ujulikanao kama Opics. Mifumo yote miwili inatarajiwa kuleta ufanisi mkubwa kwa Benki katika biashara za kimataifa na huduma kwa wateja.

Katika juhudi za kuboresha huduma na kuleta ufanisi, katika kipindi cha mwaka 2009 Benki ilianza kutekeleza mradi wa kufanyia Makao Makuu shughuli za kibenki zilizokuwa zikifanyika matawini (centralization of back o�ce operations) ili kuongeza ufanisi. Hii pia ililazimu ununuzi wa mfumo maalum wa kompyuta ujulikanao kama ‘Back O�ce Centralization System’ ili kumudu shughuli hizo. Mradi huu unategemewa kumalizika katika kipindi cha robo ya pili ya mwaka 2010. Katika mwendelezo wa kuboresha miundombinu yake, Benki imeboresha mfumo wake wa mawasiliano ambao ulikuwepo katika kipindi kisichopungua miaka minane (8) kwa kuongeza uwezo wake mara sita zaidi ya zamani. Hii itaongeza ufanisi katika mawasiliano na kupunguza gharama za mawasiliano kwa Benki.


Kitengo cha Teknohama kilifanya kazi bila kuchoka kuhakikisha kwamba wakati wote mifumo ya kompyuta na mawasiliano inapatikana na kwa ufanisi saa 24, siku 365 za mwaka. Hili lilienda sambamba na kuhakikisha kwamba rasilimali za Benki za teknohama zinatunzwa na kupewa usalama unaostahili wakati wote. Kwa miaka ijayo, inategemewa kuanzishwa kwa timu za wataalamu wa IT za kutoa huduma katika kila kanda.

MASOKOMwaka 2009 umeendelea kuwa mwaka wa mafanikio katika juhudi za Benki kutoa huduma bora, za kiubunifu na zenye kukidhi mahitaji ya wateja wake. Mikakati mipya ya masoko imechangia ukuaji mkubwa wa Benki. Akaunti ya Malkia, ambayo ni ya kwanza kabisa nchini kwa ajili ya wanawake ilianzishwa mwishoni mwa mwezi April, 2009. Hii ni akaunti iliyobuniwa mahsusi kukidhi mahitaji ya kibenki ya wanawake, Malkia Akaunti ni mpango maalum wa uhifadhi wa fedha kwa muda maalum na kiwango maalum ambacho mteja anachagua kuweka. Akaunti hii ilipokelewa kwa kishindo sokoni na iliongoza kwa kujikusanyia amana kwa haraka zaidi ya akaunti zote zilizowahi kuanzishwa katika kipindi cha miaka mitano iliyopita.

Mwishoni mwa mwaka Benki ilianzisha huduma za kibenki kwa njia za simu za mkononi ya ‘SimBanking’. Hii ni huduma bora na ya kisasa zaidi nchini. SimBanking ni huduma inayowapa wateja fursa ya kupata taarifa za akaunti zao mahali popote walipo na kwa muda wautakao. Huduma hii ni ya kiwango cha juu zaidi ya ile ya zamani ambayo ilihusisha huduma hizo kupitia ujumbe mfupi wa maandishi (CRDBSMS Banking).

Kupitia ‘SimBanking’ wateja huweza kupata salio la akaunti zao, taarifa fupi ya akaunti, maelezo kuhusu miamala, kufanya malipo ya ankara mbalimbali kama vile MultiChoice, TANESCO, DAWASCO, ada mbalimbali, kuhamisha fedha kwenda akaunti binafsi na kutuma fedha kwa akaunti ya mteja mwingine.

Mwaka 2009, Benki ilishiriki katika makongamano na maonesho mbalimbali ya kibiashara kama maonesho ya wakulima kitaifa (Nane Nane) yaliyofanyika Dodoma, Arusha na Kahama; maonesho ya utalii ya “Karibu” yaliyofanyika mjini Arusha pamoja na maonesho ya siku ya wafanyakazi duniani yaliyofanyika mjini Musoma. Benki pia iliandaa makongamano kwa ajili ya wakulima wa kahawa na pamba katika miji ya Mbeya na Shinyanga.

Mwaka 2009, Benki iliendesha kampeni za kimasoko kwa ajili ya uuzwaji wa hisa na Benki kusajiliwa rasmi kwenye Soko la Hisa la Dar es Salaam ambazo zilifanikiwa vyema na kuleta kiasi kikubwa cha maombi ya manunuzi ya hisa zaidi ya hisa zilizotolewa kwa mauzo.

Benki pia ilifanya mabadiliko makubwa katika tovuti yake (www.crdbbank.com) na kuifanya iwe ya kisasa, yenye kasi, tija na urahisi wa kutumiwa na wateja kwa mawasiliano na Benki. Tovuti hii mpya imesheheni taarifa mbalimbali kwa wateja ikiwemo sehemu maalum kwa ajili ya wawekezaji na wanahisa.


Kwa ujumla, muonekano wa kimasoko wa Benki ulikua sana kutokana na mbinu yetu ya kujali ubora wa kazi na kuwa makini na aina ya matangazo na kampeni za kimasoko tunazoziendesha. Pia kiwango chetu cha kutoa huduma zinazokidhi mahitaji ya wateja kimekuwa zaidi. Ubunifu na mikakati mipya ya masoko itaendelezwa mwaka 2010. Benki itaendelea kuimarisha na kuanzisha huduma na bidhaa ili kukidhi mahitaji ya wateja.

Ufadhili na Misaada kwa JamiiBenki ya CRDB inaamini kwamba haiwezi kujihesabu ni yenye mafanikio bila kurudisha fadhila kwa kutoa sehemu ya faida kwa jamii inayoizunguka. Katika mwaka 2009, Benki ilitumia zaidi ya Shilingi 250 milioni kusaidia jamii zinazoishi katika mazingira magumu na zinazokabiliwa na changamoto mbalimbali. Misaada hii ilielekezwa kwenye maeneo lengwa ikiwa ni pamoja na elimu, afya na mazingira.

VIELELEZO MUHIMU VYA FEDHA

Jumuisho la Taarifa za Kifedha (Tsh bn)

Aina/Mwaka 2005 2006 2007 2008 2009Amana 665 798 1,015 1,276 1,625Mikopo 202 406 588 837 950Dhamana za Serikali 217 164 120 206 253Uwekezaji na fedha zilizo kwenye benki nyingine 185 176 190 140 253Jumla ya rasilimali 745 898 1,143 1,450 1,855Fedha za wanahisa 45 69 105 141 208

Jumuisho la Taarifa za Mapato (Tsh bn) na uwiano

Aina/Mwaka 2005 2006 2007 2008 2009Faida kabla ya kodi 24 38 52 60 62Faida baada ya kodi 19 27 37 41 46Rejesho la mtaji 29% 36% 38% 32% 25%Rejesho la rasilimali 2.5% 2.9% 3.3% 5% 4%Pato kwa hisa 19 22

Katika kipindi cha miaka mitano iliyopita Benki imeweza kupata matokeo mazuri ya kifedha. Jumla ya rasilimali zilikua kwa wastani wa asilimia 25 kwa mwaka. Aidha faida baada ya kodi ilikuwa kwa wastani wa asilimia 25.5 katika kipindi cha miaka mitano.


OPERATING ACTIVITIES

ECONOMIC REVIEW

General Economic PerformanceOver the past four years Tanzania’s economy performed fairly well, recording an average GDP growth rate of 7.2% per annum. Following the Global Financial Crisis, real GDP growth decreased sharply to 5.6% in 2009. The Global Financial Crisis translated in a decrease in demand and prices for the Tanzania’s principal exports crops, in particular cotton, co�ee and horticultural products. Additionally, earnings from tourism, transportation as well as in�ows from foreign investments were adversely a�ected by the crisis. Despite the economic stimulus package put in place by the Government in mid-2009 with an objective of mitigating the e�ects of the crisis on �nancial institutions, and particularly commercial banks, the fruits of the package begun to be noticed only towards the end of the year 2009. Among the lessons learnt from the crisis is the continued domination of the economy by agriculture and mining sectors, calling for banks and other �nancial institutions to set policies and credit packages that will support e�ective �nancing in the sectors.

Economic Performance Expectations in 2010 and BeyondGeneral economic conditions suggest that foreign investment, trade and tourism will slowly pick up in 2010. Nevertheless, sluggish recovery of the global economy and low demand for agricultural commodities will keep on hindering Tanzania’s economic performance. The construction, mining and services sectors are foreseen to perform well. Growth in construction industry will largely be driven by donor-funded infrastructure mainly in roads and energy sub-sectors whereas services will chie�y be driven by telecommunications, transportation and �nancial services. It is therefore anticipated that economic growth will to a great extent pick up from 5.6% attained in 2009 to about 6.5% in 2010.

Other Developments in the Economy

Developments in Financial and Monetary AggregatesDuring the year 2009 growth in monetary aggregates remained moderate following relatively slow growth of banks’ credit to the private sector. The change in money supply occurred mostly in non-transferable deposits, mainly savings and �xed or time deposits, which accounted for 54.7% of the total change in both broad money supply and extended broad money supply. Generally, annual growth rate of credit to the private sector decelerated from 26% in 2008 to only 17.5% in 2009.

Headline In�ation DevelopmentsThe annual headline in�ation rate kept on �uctuating on month to month basis during the year to December 2009 but on average it stood at 12.5%. The rise was chie�y attributed to an increase in prices of food items. Inspite of a reasonable harvest in 2009, food prices stood high because


of inelastic demand, structural rigidities and increased exports to the neighbouring countries which experienced food shortages. In addition to the structural rigidities a�ecting food prices, going forward trends suggest that stabilization of oil prices worldwide forecast to average at US$ 75 per barrel will contribute to deterioration in in�ation during 2010.

RETAIL BANKINGFor the Bank‘s Retail Banking, 2009 was a year of sustained growth and enhancement of the Bank’s services and capabilities. Key highlights for the year were the opening of new branches, the launching of innovative segmented o�erings and other initiatives that will enable CRDB Bank to build further on its position as a progressive, secure and stable bank. The Bank continued with its two pronged strategy of improving customer service in the Bank’s branches as well as o�ering esteemed customers convenient and innovative alternative delivery channels that meets their needs. With changes in technology, the Bank was able to upgrade its communication infrastructure across all branches thereby increasing e�ciency in transaction processing by reducing system downtime and increasing ATM up time. The Bank started implementing system based changes that are geared towards centralizing back o�ce transactions and upgrading its core banking system. These two systems will enable the Bank to further improve its services and enhance its growth momentum when fully implemented by the second quarter of year 2010.

Distribution NetworkIn 2009, the Bank progressed in its quest to increase its network of branches (traditional and mobile) to ful�l its ambition of having branches in half of the country’s districts by year 2012. The Bank opened 6 branches in the year under review namely, Marangu, Zanzibar, Kibaha, Kariakoo, Nyanza and Mabibo. The increase has made the Bank the second largest bank in terms of branch network. The Micro�nance subsidiary also increased its network of partner MFIs to 425 from 376 in 2008.

Card BusinessThe Bank’s card business continued to o�er value to our customer base and 2009 was a year of great changes for the Bank’s card business in terms of increasing revenue, strengthening security of card business, and improving quality of merchants recruitment to o�er enhanced convenience to our card customers. CRDB Bank moved to be EMV compliant and the Bank is now o�ering new TemboCardVisa chip cards. TemboCardVisa is the only card in Tanzania to be certi�ed as fully EMV compliant.

The Bank aggressively targeted the Zanzibar tourism and entertainment industry. The Bank’s merchant business was non existent in Zanzibar prior to this year. Within the year, the Bank was able to acquire over 30 merchants. The opening of the new branch in Zanzibar will pave way for a more successful card business operation in Zanzibar.


The special cards designed for users that transact with TRA (TemboCard TRA) or TANAPA (TemboCard TANAPA) have been transformed from o�ine to online mode. The transition to the online platforms enables customers to be immediately online once a transaction is initiated. As at the end of the year, the Bank had 605,936 cards in the market, both TemboCard normal and TemboCardVisa as well as 502 POS at merchant outlets.

SME businessThe initiatives taken in 2009 in the SME segment resulted into a broadening of the Bank’s client base, both in terms of lending as well as deposits and more diversi�ed risk pro�le with higher returns. The SME loan portfolio doubled both in number and value during the period under review. Out of Tshs. 99.8 billion disbursed during the year, the outstanding balance at end of the year was Tshs. 40 billion.

During year 2009, 1,156 loans were approved with an average limit of Tshs. 50 million per loan. The average loan size increased by Tshs. 20 million from an average size of Tshs. 30 million last year. Interest income and other commission earned amounted to Tshs. 6.75 billion during 2009. At the end of year 2009 Portfolio at Risk (PAR) was 1.58%.

During the year, the SME unit for the �rst time was involved in �nancing under the warehouse receipt system for cashewnuts in Lindi region. Up to the end of December 2009 a total amount of Tshs. 7 billion was disbursed to �nance Agricultural Marketing Cooporative (AMCOS) in that Region to trade in cashew nuts under the warehouse receipt system. At the end of December 2009, all loans had been repaid to the Bank. This line of business is expected to increase in 2010 as the warehouse receipt system has become acceptable to more stakeholders.

Micro�nance OperationsIn year 2009, CRDB Micro�nance Services Company Ltd exhibited a tremendous growth evidenced by expansion of its presence to 23 of Tanzania’s 26 regions and its network coverage to 112 of the country’s total 136 districts through partnerships with 425 a�liate micro�nance institutions enabling provision of �nancial services to 571,476 microentrepreneurs. Amongst the notable milestones achieved were the following:

• Financing drip irrigation for SACCOS members engaged in modern grape cultivation in Chamwino district (Dodoma). This technology will enable e�cient use of underground water.

• Implementation of a programme aimed at financing agriculture at various stages of value chain from cultivation to marketing.

• Enhancing the partner MFIs efficiency by helping them automate the activities: CRDB Micro�nance MIS solution was rolled out to over 70 partner institutions.

• Introduction of micro insurance products.


• Commercialization and sharing of the Bank’s vast experience in Microfinance through consultancy services:- the Bank’s Micro�nance Subsidiary Company established a Consultancy Services Unit to serve the growing market demand.

CORPORATE BANKINGCorporate lending in 2009 was mainly characterized by sluggish growth and cherry-picking of segments or sub-sectors for any additional �nancing taking account of the fact that some sectors received support from the Government with a view to stimulate their contribution to economic growth. It is in this context that there was relatively less concentration on lending to crops like cotton and co�ee that had su�ered profound losses during the previous season. Our Corporate customers, mostly farmers, were therefore made aware of the global trends, markets and the need to be prudent in seeking �nance.

Despite such conservative approach in lending, in 2009 the Bank continued to extend loans and other credit and trade �nancing facilities to its corporate customers in all sectors across the economy. Among many deals, we were exceedingly pleased with our trade �nance together with well informed Corporate Relationship Management teams whose e�ort made it possible to acquire business and deliver services to key customers in the utility sectors. The Bank’s total portfolio grew from TShs. 836.8 billion at end of December, 2008 to TShs. 949.5 billion in December 2009. Out of this portfolio corporate lending accounted for 87%.

During the year under review the Bank’s institutional clients’ team through the countrywide branch network mobilized deposits from various government, non-government and quasi-government institutions all over the country. A sizeable portion of the growth of the Bank’s deposits which grew from TShs. 1.2 trillion at the end of year 2008 to TShs. 1.6 trillion as at 31st December, 2009 was attributable to this segment of customers.


LENDINGThe net loan portfolio rose by 13% from Tshs. 837 billion as at 31 December 2008 to Tshs 949 billion at 31 December 2009. The agricultural sector continued to dominate, accounting for over 26 % of the portfolio, followed by trade and commerce 17%. The gross loan portfolio distributed by sectors is shown in the table below:

Sector December, 2008 December, 2009

Balance % of Ranking Balance % Ranking (In Tshs Total (In Tshs of Total Million) Million)

Trading and Commerce 127,976 15% 2 166,052 17% 2

Financial intermediaries 59,356 7% 6 70,586 7% 5

(micro�nance institutions)

Leasing 0 0% 0 0%

Manufacturing and processing 91,785 11% 5 68,217 7% 6

Agriculture, Livestock, Forestry, 237,871 28% 1 257,020 26% 1

Hunting and Fishing

Transport, Communication 33,329 4% 7 57,809 6% 7

Mining and Quarrying 7,144 1% 10,513 1% 11

Real Estate 29,218 3% 9 32,255 3% 9

Building and Construction 12,464 1% 10 20,337 2% 10

Tourism, Hotels and Restaurants 31,114 4% 8 45,629 5% 8

Utilities and Public Services 110,385 13% 3 127,170 13% 3(mainly hospitals, electricity,

water and schools)

Warehousing and Storage 0 0% 0 0%

Personal/Consumer 105,103 12% 4 121,453 12% 4

Others (including overdrawn 2,449 0% 11 5,132 1% 12

accounts)

Gross Loans, Advances 848,194 100% 982,173 100%

and Overdrafts

Interest in Suspense -1,833 0% -5,822

Provision Amount 9,559 -1%

Net Loans, Advances 836,803 100% 949,154

and Overdrafts


TREASURY OPERATIONSCRDB Bank treasury function focuses on optimizing cost of funds, managing liquidity and risks related to treasury operations, trading and sales. The Department has three functional units including money market, foreign exchange and sales. During 2009, treasury operations of the Bank showed a marked improvement in the market share of foreign exchange business despite depressed interest rates on foreign currency denominated assets arising from the spill-over e�ects of the global �nancial crisis. Treasury foreign exchange operations posted an income of Tshs. 15.2 billion compared with Tshs.13 billion realized in 2008, an increase of 17%. Domestic money market operations generated Tshs. 28.5 billion against Tshs. 23 billion in 2008, an increase of about 24%. These achievements were achieved amidst extreme forex market volatility and declining interest rates in the money market. The weighted average Treasury bill yield was 7.76% in 2009 compared with 8.93% in 2008. The shilling depreciated by an average of 2.59% during the year.

RISK MANAGEMENTGiven the nature of the banking business, management of risk is of utmost importance. Bank introduced specialized department to deal with risk management in 2007. With the global �nancial crisis, a greater scrutiny has been placed on bank’s management of risk in terms of practices, procedure and e�ectiveness. The new systems that the Bank has acquired for core banking, treasury and trade �nance have very robust applications that reduce operational risk by timely highlighting risks. As more and more local banks have been a�ected by frauds and other aspects of losses, the unit started a whistle blowing link that can be accessed by both sta� and customers. The link is on intranet as well as internet on the Bank’s website (www.crdbbank.com).

INFORMATION COMMUNICATION TECHNOLOGY (ICT)CRDB Bank leverages information technology as a strategic tool to gain competitive advantage and improve productivity and e�ciency of the organization. Our platforms are designed to service scale and are now capable of handling increased customer accounts and transaction volumes. We have used technology to deliver process improvements, innovation and to create new products and add value to our o�erings.

During the year under review the Bank had started a project of overhauling its core Banking System to a new relational database system branded Universal Banking – Bank Fusion. This will enable the Bank to deliver various products in a more �exible and a cost-e�ective way.

The Bank has also automated its international trade functions by introduction of a trade �nancial system called TI Plus and its treasury operations by introducing treasury management system called Opics. Both these systems will enable the Bank to increase e�ciency and handle large volumes, while providing customers convenient access to the related services.


In its e�ort to increase operational e�ciency the Bank also started in 2009 to implement process rationalization by centralizing its branch back o�ce operations entailing acquisition of back o�ce centralization system. This project is expected to be completed by the third quarter of 2010.

In tandem with this, the Bank also upgraded its communication system from the old system which had been in place for more than eight years. The new system has increased capacity six times more than the previous one. This will enable the Bank to reduce system down time and costs.

ICT Support team also worked tirelessly to maintain high level of system availability and service 24x7, 365 days. This has been managed alongside an ongoing Information Technology (ICT) projects to ensure that the Bank’s ICT assets are properly secured and maintained. These will be further developed in the coming years by introduction of Zonal Support Teams.

PEOPLEAs at 31st December 2009, the Bank had 1,311 employees out of whom 806 (62%) were males and 505 (38%) females. At management level about 24.8% were female. The annual growth in sta�ng was 5% as compared with 7.4% in the year 2008. This is in keeping with the overall growth of the Bank and its outlets.

In the year 2009, the Bank recruited 136 employees of which 96 (71%) were males and 40 (29%) were females. Most of the recruits were entry level hires (i.e. Bank O�cer Trainees and Bank Teller Trainees). The Bank promotes from within whenever possible, hence, during the period the recruitment of senior sta� was relatively low.

The Bank is an equal opportunity employer. It gives equal access to employment opportunities and ensures that the best available person is appointed to any given position free from discrimination of any kind and without regard to factors like gender, marital status, tribe, religion and disability which does not impair ability to discharge duties. MARKETING2009 continued to be a year of great achievements in o�ering innovative solutions to meet customer needs. New marketing programmes have contributed to solid business growth. Signi�cantly, a �rst women designated account in the country, Malkia Account was launched at the end of April 2009. This is an account designed to meet women’s savings plans especially those with unique �nancial needs, without a�ecting their spending behaviors. Malkia account has become the fastest growing account in terms of volumes of deposits compared to all other accounts launched in the past �ve years.


Towards the end of the year, the Bank launched the most advanced mobile phone based product in the country, branded CRDB SimBanking. CRDB SimBanking is a service that allows customers to access their accounts from wherever they are, whenever they wish. The service is a second generation variant of mobile banking services through their cellular phones. Customers can access their account balances, get a mini statement, get transaction details, pay utility bills, school fees and other �xed term payments like MultiChoice, transfer funds between own accounts as well as to third parties.

In 2009, the department spearheaded the Bank’s participation in various forums and trade exhibitions, including the Peasant’s Day (“Nane Nane”) exhibitions in Dodoma, Arusha and Kahama; Karibu Tourism Fair in Arusha as well as National May Day exhibitions in Musoma. The Bank also conducted Co�ee Forum in Mbeya and Cotton Forum in Shinyanga for its borrowing customers.

During the year, the Bank conducted marketing campaigns to support the rights issue, IPO and listing of the Bank’s shares at the Dar es Salaam Stock Exchange (DSE) which were all a success with massive oversubscription.

The Bank also revamped its website (www.crdbbank.com). The new website is state of the art with an e�cient, user friendly customer interface that allows customers to interact with the Bank in general or with speci�c business units. The new website has more information for customers and other stakeholders including a special section for investors and shareholders.

Further innovations and new marketing programmes will take place in 2010. The Bank will continue to enhance and develop the Bank’s services and products so that customers receive the level of sevice and assistance that they demand.

Corporate Social Responsibility (CSR)The Bank is steadfast in its belief that it can not prosper and consider itself successful without sharing the fruits of its success with the community within which it operates. In 2009, the Bank donated over Tshs. 250 million to support disadvantaged communities and other noble causes. The support which were given out were in areas that the Bank had earmarked to receive support, namely, education, health and the environment.


FINANCIAL HIGHLIGHTS

Consolidated Statement of Financial Position (Tshs bn)

Item/Year 2005 2006 2007 2008 2009Deposits 665 798 1,015 1,276 1,625Loans 202 406 588 837 950Government Securities 217 164 120 206 253Placements and balances with other banks 185 176 190 140 253Total assets 745 898 1,143 1,450 1,855Shareholders funds 45 69 105 141 208

Consolidated Statement of Comprehensive Income (Tshs bn) and key ratios

Item/Year 2005 2006 2007 2008 2009Pro�t before tax 24 38 52 60 62Pro�t after tax 19 27 37 41 46Return on Equity 29% 36% 38% 32% 25%Return on Assets 2.5% 2.9% 3.3% 5% 4%Earning per Share 19 22

Over the last �ve years the Bank has been able to deliver strong results. Total assets grew at an average of 26% per annum, while deposits grew at an average rate of 25% per annum. Pro�t after tax grew at an annual rate of 25.5% over the �ve year period.


Taarifa ya WakurugenziKwa mwaka ulioishia tarehe 31 Disemba 2009

Wakurugenzi wa Benki wanayo furaha kuwakilisha taarifa na ripoti za kimahesabu za Benki ya CRDB na kampuni yake tanzu zilizokaguliwa kwa mwaka ulioishia tarehe 31 Disemba 2009.

Shughuli za Benki Kuu na Mapitio ya BiasharaBenki imesajiliwa kwa sheria za mabenki na asasi za fedha ya mwaka 2006 na jukumu lake kuu ni kutoa huduma za kibenki.

Benki yetu ni moja ya watoaji wakubwa wa huduma za kibenki nchini na imejidhatiti katika huduma kwa wateja wakubwa, wadogo na wakati pamoja na huduma kwa wafanyabiashara wadogo wadogo (Micro�nance). Benki inatoa huduma zote za kibenki ikiwa ni pamoja na huduma za uuzaji na ununuaji wa hisa na uwakala wa bima. Benki ina mtandao wa matawi 60 na asasi za fedha 425 ambazo ni washirika wa Benki. Mwaka huu matawi mawili yalifanyiwa ukarabati, 6 mapya yalifunguliwa huku mashine za kuweka na kutoa fedha 32 ziliongezwa na kufanya Benki kuwa na jumla ya mashine 132.

AmanaMwaka 2009, amana za wateja zilikua kwa asilimia 28. Mpaka ku�kia tarehe 31 Disemba, 2008, jumla ya amana za Benki zilikuwa shilingi bilioni 1,273 wakati tarehe 31 Disemba 2009 zilikua na ku�kia shilingi bilioni 1,621. Hii ni kutokana na kujulikana na kuaminiwa kwa Benki, kufunguliwa matawi mapya, ukarabati wa matawi ya zamani, bidhaa mpya na kampeni madhubuti na bunifu za kimasoko.

MikopoKiwango cha mikopo iliyotolewa na Benki kiliongozeka kwa asilimia 14 kutoka Sh. 837 bilioni mwishoni mwa mwaka 2008 mpaka Sh. 950 bilioni mwishoni mwa mwaka 2009. Sekta ya kilimo imeendelea kuongoza ambapo ilipata asilimia 26 ya mikopo yote ilitolewa, ikifuatiwa na biashara na uchumi yenye asilimia 17, huduma za jamii (ikiwemo umeme, shule, hospitali na maji) yenye asilimia 13, mikopo binafsi yenye asilimia 12, uzalishaji asilimia 7, wakala wa fedha asilimia 7, ujenzi asilimia 5, utalii na mahoteli asilimia 5, usa�ri na mawasiliano asilimia 7 kila moja wakati sekta ya madini ilipata asilimia 1. Marejesho ya riba za mikopo ilikuwa Sh. 117 bilioni kutoka Sh. 89 bilioni mwaka 2008 ambayo ni asilimia 58 ya jumla ya fedha za uendeshaji wa Benki.

HazinaIli kuweza kuwapatia wateja wetu huduma bora na pia kuweza kutoa taarifa sahihi kwa kamati ya Benki ya utawala, mawasiliano na ukaguzi wa mali na Amana ( ALCO), Benki ilianzisha mfumo mpya wa kusimamia hazina, ulitwao “OPICS” mwezi Machi, 2009.


Mapato kutokana na biashara ya fedha za kigeni yalikuwa Sh. 15 bilioni mwaka 2009 ikilinganishwa na Sh. 13 bilioni mwaka 2008; hii ilichangia asilimia 8 ya jumla ya fedha za uendeshaji. Mwaka 2009 Benki ya CRDB ilishiriki sana kwenye biashara kati ya mabenki kwa kuuza fedha za kitanzania kwa benki nyingine kwa faida.

Shughuli za soko la fedha zilichangia kwa kiasi kikubwa kuongeza pato la riba la mwaka 2009, pato la riba katika hisa, ‘bills na bonds’ lilichangia asilimia 14 ya fedha za uendeshaji wa Benki.

Mapato mengineMapato mengine yalijumuisha mapato yatokanayo na ada, faida itokanayo na mauzo ya mali na vifaa ambavyo vyote vilichangia asilimia 20 ya fedha za uendeshaji.

Biashara za Wateja Wadogo Wadogo - Micro�nanceKatika mwaka 2009 kulikuwa na ongezeko la asasi washirika za kifedha 49 kutoka asasi 376 mwaka 2008 hadi ku�kia 425 mwaka 2009. Mpaka tarehe 31 Disemba 2009 kiasi cha mawakala 222 wa Micro�nance walikuwa wamepewa mikopo iliyo�kia kiasi cha Sh. 70 bilioni. Amana yao katika benki ilikuwa Sh.13 bilioni ikiwa na ukwasi wa asilimia 3.

Benki kupitia kampuni yake tanzu ya Micro�nance iliendelea kuchangia juhudi za serikali za kuendeleza sekta ya kilimo kupitia sera ya “kilimo kwanza” kwa kuwasaidia wakulima kuongeza uzalishaji na pia kujipatia bei nzuri za mazao yao.

Mwaka 2009, mikopo yenye jumla ya Sh.14 bilioni ilitolewa kwa asasi za kati za kifedha (MFI) 25 kwa ajili ya shughuli za kilimo cha kisasa ikiwemo ununuzi wa vipuri na zana za kilimo kama vile vifaa vya umwagiliaji wa zabibu na mazao mengine. Mfumo wa risiti ghalani (Warehousing receipt system) ambao ulisaidia upatikanaji wa bei bora za nafaka, korosho, miwa na chai pia ulifadhiliwa kupitia mpango wa micro�nance.

Biashara Ndogo na za KatiMikopo kwa wafanyabiashara wadogo na wa kati ilikuwa kwa wingi wa wateja na thamani katika mwaka 2009. Katika kipindi hicho, mikopo 1,156 ilitolewa ikiwa yenye thamani ya Sh. 118 bilioni. Wastani wa mikopo uliongezeka kutoka Sh. 30 milioni mwaka 2008 mpaka Sh.50 milioni. Jumla ya pato la riba, ada na malipo mengine ili�kia Sh. 6 bilioni, ikilinganishwa na Sh. 4 bilioni mwaka 2008. Katika jumla hiyo, mikopo ya Sh.15 bilioni ilikuwa ni mikopo iliyotolewa kwenye sekta ya kilimo na uzalishalishaji kama pembejeo na matrekta. Ukwasi ulikua kwa asilimia 1.5.


Biashara ya KadiMwaka 2009, Benki jumla ya kadi za TemboCardVisa 200,892 na kadi za kawaida 3,755 na kufanya Benki kuwa na jumla ya kadi 314,868 za TemboCardVisa na Kadi 291,068 za TemboCard za kawaida. Mpaka ku�kia Disemba 2009 jumla ya mashine za malipo (Point of Sale) 502 ziliwekwa kwenye vituo vya biashara vyenye uwezo wa kupokea kadi za visa za debit na credit.

Teknolojia ya MawasilianoBenki imeanza kuweka mfumo mpya wa mawasiliano ya kibenki (Bank Fusion-Universal Banking). Pamoja na hilo, Benki pia ilinunua mfumo mpya wa Trade Finance na mfumo wa kutoa huduma za kibenki kwa njia ya simu za mkononi yaani CRDB SimBanking.

Mipango ya Maendeleo ya BaadaeMwaka 2009 ulikuwa ni mwaka wa pili katika utekelezaji wa mkakati wa maendeleo wa Benki kwa mwaka 2008 - 2012. Benki inaendelea kutilia mkazo huduma kwa wateja wadogo kwa kuwapatia huduma na bidhaa bora kupitia upanuzi wa mtandao wa Benki, utumiaji mzuri wa bidhaa za kiteknolojia na ukuzaji wa mfumo mzima wa kibenki. Benki itaendelea kutoa huduma bora na za kisasa kwa wateja wakubwa na taasisi mbalimbali na pia kuchukua hatua mbalimbali kupunguza ukwasi. Changamoto kubwa ni jinsi gani ya kujenga mfumo miundombinu imara kuweza kutoa huduma zote za kibenki kwa wateja wa makundi yote.

Matokeo ya KifedhaBenki ilipata faida kabla ya kodi na tengo kwa ajili ya mikopo mibaya ya Sh. 80 bilioni mwaka 2009 ikilinganishwa na Sh. 65 bilioni mwaka 2008 ambalo ni ongezeko la asilimia 23. Hata hivyo, Benki iliongeza jumla ya Sh.18 bilioni kwa ajili ya tengo la mikopo mibaya mwaka 2009 ikilinganishwa na tengo la Sh. 5 bilioni mwaka 2008 kutokana na kushuka kwa urudishwaji wa mikopo kulikosababishwa na mdororo wa uchumi duniani. Kwa bahati, Serikali iliingilia kati na kutoa ruzuku ya kunusuru ambapo benki ilipata jumla ya Sh. 8.9 bilioni kwa ajili ya hasara iliyotokea kwa wanunuzi wa pamba, na zaidi ya Sh. 9.3 bilioni zilizotolewa mwezi Februari 2010. Benki ilipata faida kabla ya kodi ya Sh. 62 bilioni mwaka 2009 ikilinganishwa na Sh. 60 bilioni mwaka jana ambalo ni ongezeko la asilimia 3.

Hali ya FedhaHali ya kifedha ya Benki na kampuni tanzu tarehe 31 Disemba 2009 imeelezwa vizuri katika ukurasa wa 68 wa taarifa ya fedha. Wakurugenzi wanatambua kuwa Benki iko katika hali nzuri ya kifedha kama ilivyoainishwa na sheria ya Makampuni nchini ya mwaka 2002 na ya Mabenki na Asasi za fedha ya mwaka 2006.


MtajiMwaka 2009, kulikuwa na ongezeko la mtaji wa hisa kutoka hisa1,000,000,000 hadi hisa 4,000,0000 ikiwa ni matokeo ya uwiano wa 1:4. Mabadiliko hayo ni maamuzi ya Mkutano Mkuu Maalumu wa tarehe 6 Disemba, 2008 na mabadiliko hayo yalitekelezwa Januari, 2009Mtaji wa Benki katika hisa za kawaida uliongezeka kutoka hasa 247,333,200 hadi hisa 2,176,532,160 katika kipindi cha mwaka 2009. Mgawanyo wa hisa katika kipindi cha 2009 ulikuwa kama ifatavyo;

Tukio Tarehe Idadi ya hisa Thamani Kiasi – (Sh.)

Kabla ya hisa za bakshishi 1 Jan. 2009 247,333,200 100 24,733,320,000

Baada ya hisa za bakshishi – 1:1 6 Jan. 2009 494,666,400 100 49,466,640,000

Baada ya mgawanyo wa hisa – 1:4 6 Jan. 2009 1,978,665,600 25 49,466,640,000

Baada ya kutolewa hisa – 1:10 9 Mar. 2009 2,176,532,160 25 54,413,304,000

Uuzaji wa Hisa na Kuorodheshwa kwa Benki katika Soko la Hisa la Dar es Salaam Katika mwaka 2009 Bodi ya Wakurugenzi ilipitisha uamuzi wa kuuza hisa kwa wananchi na pia

kuorodhesha hisa za Benki katika soko la Hisa la Dar es Salaam. Sababu za kuorodheshwa kwa hisa za Benki katika Soko la Hisa ni;

I. Kuongeza fursa za kukuza mtaji wa Benki II. Kuimarisha taswira ya Benki miongoni mwa jamii III. Kuwezesha hisa za Benki kuuzwa katika soko la Hisa

Benki iliweza kukuza mtaji wake mpaka uka�ka Sh. 16.5 bilioni na Benki iliorodheshwa rasmi katika Soko la Hisa tarehe 17 Juni, 2009.

GawioWakurugenzi watapendekeza katika Mkutano Mkuu wa mwaka gawio la shilingi 7 kwa kila hisa moja. Jumla ya gawio litakalopendekezwa ni Sh. 15.2 bilioni.

WakurugenziWakurugenzi waliotumikia Benki tangu tarehe 1 Januari 2009 mpaka wakati ripoti hii inatayarishwa ni wafuatao:


Namba Jina Nafasi Uraia Kiwango cha Elimu

1 Bw. Martin J. Mmari Mwenyekiti Mtanzania CPA(T), MBA (Int. Bank & Finance)

2 Bw. Juma A. Abdulrahman Mjumbe Mtanzania CISA, MSC(Fin), FCPA

3 Bi. Joyce W. Luhanga Mjumbe Mtanzania M. A (Econ)Planning

4 Bi. Lydia M. Joachim Mjumbe Mtanzania M. A (Econ)Pop studies

5 Bw. Joseph C. Machange Mjumbe Mtanzania MSc (System Eng.)

6 Bw. Kai Kristo�ersen Mjumbe Mdenishi LLM, B.Com

7 Bw. Bede P. Lyimo Mjumbe Mtanzania MBA, BA

8 Bw. Boniface C. Muhegi Mjumbe Mtanzania M.Sc(Eng)

9 Bw. Ally H. Laay Mjumbe Mtanzania ADA, PGDA, FCPA (T) MBA (Fin and Marketing)

10 Dk. Sylvia S. Temu Mjumbe Mtanzania PhD, Masters of Management Studies

11 Bi. Joyce N. Nyanza Mjumbe Mtanzania MBA,ADA

12 Dk. Charles S. Kimei Mkurugenzi Mtendaji Mtanzania PhD (Money and Finance), MA, BSc (Eco)

13 Bw. Jens Ole Pedersen Mjumbe Mdenishi Dip (Fin) Dip (Org. Dev)

Katika mkutano wa mwaka uliofanyika tarehe 20 Juni 2009, Dk. Sylvia Temu kutoka Mfuko wa Uwekezaji wa DANIDA, Bi. Joyce W. Luhanga kutoka kundi la wanahisa wenye hisa zaidi ya asilimia 1 ya mtaji wa Benki na Bw. Joseph C. Machange kutoka kundi la wanahisa wenye hisa pungufu ya asilimia 1 ya mtaji wa Benki walistaafu. Bi. Joyce W. Luhanga na Bw. Joseph C. Machange walisimama kwenye uchaguzi na wakachaguliwa. Bw. Juma A. Abdulrahman alichaguliwa kutoka kundi la wanahisa wenye hisa pungufu ya asilimia 1 ya mtaji wa Benki.

Maslahi ya WakurugenziMaslahi ya wakurugenzi katika mwaka 2009 ni kama ilivyoonyeshwa katika jedwali hapa chini:

Jina 2009 2008 Idadi ya Hisa % Idadi ya Hisa %

Bw. Ally H. Laay 300,945 0.01 42,000 0.02

Bw. Boniface C. Muhegi 1,689,541 0.08 178,320 0.07

Dk. Charles S. Kimei 450,220 0.02 49,800 0.02

Bw. Joseph C. Machange 205,125 0.009 13,500 0.01

Bi. Joyce W. Luhanga 52,800 0.002 6,000 0.002

Bi. Joyce N. Nyanza 405,025 0.02 44,000 0.02

Bi. Lydia M. Joachim 973,825 0.04 106,500 0.04

Bw. Martin J. Mmari 950,400 0.04 108,000 0.04

Dk. Sylvia S. Temu 76,800 0.004 - -

Bw. Juma A. Abdulrahman 241,660 0.01 26,100 0.01


Ujira kwa WakurugenziWakurugenzi wote isipokuwa wawili tu wamekuwa siyo watendaji. Ujira kwa wakurugenzi wasio watendaji ulilipwa kama ulivyopitishwa na Mkutano Mkuu wa mwaka uliopita. Jumla ya ujira uliolipwa ni Sh. 236 milioni.

Wenye Hisa NyingiKatiba ya Benki ya CRDB inatambua makundi matatu ya wanahisa ambayo ni kundi la wanahisa ambao kila mmoja ana hisa zenye thamani zaidi ya asilimia 10 ya hisa zote za Benki, kundi la wanahisa ambao kila mmoja ana hisa kati ya asilimia 1 na 10 ya hisa zote za Benki na kundi la wanahisa ambao kila mmoja ana hisa zenye thamani pungufu ya asilimia 1 ya hisa zote za Benki.

Kundi la Wanahisa 2009 2008

Idadi ya Hisa Asilimia Idadi ya Hisa Asilimia

Zaidi ya asilimia10 685,183,680 31.5 74,104,200 30.0

Asilimia 1 hadi asilimia 10 409,268,775 18.8 56,032,980 22.6

Chini ya asilimia 1 1,082,079,705 49.7 117,196,020 47.4

Jumla 2,176,532,160 100.0 247,333,200 100.0

Wanahisa wenye asilimia moja au zaidi kila mmoja ya hisa zote wameorodheshwa hapa chini:

2009 2008

Wanahisa Idadi ya Hisa Asilimia Idadi ya Hisa Asilimia

DANIDA Investíment Fund 467,781,934 21.5 74,104,200 30.0

Parastatal Pension Fund 217,401,746 10.0 15,000,000 6.1

IPP Limited 117,405,600 5.4 13,950,000 5.6

Public Services Pension Fund 71,532,250 3.3 - -

The Local Authorities Pension Fund 36,039,625 1.7 2,760,000 1.1

Western Zone Tobacco Growers Cooperation 36,000,000 1.7 4,500,000 1.8

Hans Aingaya Macha 28,082,800 1.3 3,000,000 1.2

CMG Investment Ltd 26,143,260 1.2 2,674,200 1.1

SHIRECU 26,000,000 1.2 3,250,000 1.3

Epack Investment Fund 24,790,240 1.1 3,098,780 1.2

Lindi Development Fund 21,660,000 1.0 2,700,000 1.1

Kagera Coop Union (1990) Ltd 21,615,000 1.0 5,100,000 2.1

Jumla 1,094,452,455 50.3 130,137,180 52.6


Shughuli na Wenye UhusianoIlipo�ka tarehe 31 Disemba 2009 wajumbe wa Bodi Bw. Ally H. Laay, Bi. Joyce N. Nyanza na Dk. Charles S. Kimei walikuwa na salio la mikopo kama inavyoonyeshwa kwenye mabano: Bw. Ally H. Laay (Sh. 12 Milioni), Bi. Joyce N. Nyanza (Sh. 59 milioni) na Dk Kimei (Sh. 43 milioni).

Ustawi wa WafanyakaziIlipo�ka Disemba 2009 Benki ilikuwa na wafanyakazi 1,311 kati yao wanaume walikuwa 806 (asilimia 62) na 505 (asilimia 38) wanawake. Ongezeko la wafanyakazi kwa mwaka lilikuwa asilimia 5 ukilinganisha na asilimia 7.4 ya mwaka 2008. Hii inaendana na ukuaji wa Benki kwa ujumla na ongezeko la vituo vyake vya biashara. Kwa upande wa menejimenti wanawake ni asilimia 24.8.

Benki hujali usawa katika kutoa nafasi za ajira na inahakikisha yule mwenye uwezo ndiye anayepewa nafasi bila ya kuwepo ubaguzi unaoangalia jinsia, ndoa, kabila, dini au ulemavu ambao haumkwamishi kumudu kazi aliyoiomba.

Mwaka 2009 Benki iliajiri wafanyakazi 136, kati yao 96 (asilimia 71) walikuwa wanaume na 40 (asilimia 29) wanawake. Wengi wa walioajiriwa walikuwa wa ngazi za mwanzo (a�sa benki mwanafunzi na mhasibu fedha mwanafunzi). Itokeapo fursa ya cheo cha juu Benki huijaza kutumia wafanyakazi wa ndani (kwa kuwapandisha vyeo) kadri inavyowezekana, hivyo katika kipindi hiki wafanyakazi wachache wa vyeo vya juu waliajiriwa.

Mwaka 2009, Benki pia iliweka mkazo katika uelewa wa wafanyakazi wake juu ya masuala ya VVU/UKIMWI kwa kuhakikisha wanapata taarifa muhimu za jinsi ya kujikinga na elimu jumla ya janga hili. Benki pia iliingiza programu za masuala ya VVU katika mafunzo ya mwanzo kwa wafanyakazi wapya na mafunzo mengineyo. Wahamasishaji rika kuhusu janga la UKIMWI toka idara zote za Benki, walipata mafunzo maalum ili kukabiliana na janga la UKIMWI. Na wafanyakazi wote wameendelea kuhimizwa ili wapime afya zao kwa hiari.

MasokoBenki ilitumia mikakati mbalimbali ili kuendeleza na kuongeza uelewa wa wateja kuhusu bidhaa na huduma za Benki, ili pia kuimarisha chapa ya kampuni na kuongeza uelewa wa wateja juu ya vituo mbalimbali vya kutolea huduma za Benki.

Benki ilifanya ta�ti mbalimbali ili kubaini maeneo yanayofaa zaidi kwa ajili ya biashara, hususani kwa kufungua matawi au kusimika ATM.


Benki ilishiriki katika makongamano mbalimbali na maonesho ya biashara, ikiwa ni pamoja na Sikukuu ya Wakulima yaani Nane Nane iliyofanyika Dodoma, Arusha na Kahama, maonesho ya utalii yaliyofanyika Arusha, na katika Sikukuu ya Wafanyakazi (Mei Mosi) iliyofanyika Musoma. Benki pia iliandaa makongamano ya kahawa na pamba yaliyofanyika kule Mbeya na Shinyanga kwa ajili ya wateja. Matukio haya yalitumika kama majukwaa ya kujitangaza, kujenga chapa ya Benki, kutafuta biashara na kukutana na wadau wa kibiashara.

Katika mwaka huo, kampeni maalum ziliendeshwa na Benki ili kuufahamisha umma kuhusu uuzwaji wa hisa za Benki katika Soko la Hisa la Dar es Salaam (DSE) na kwamba Benki ya CRDB imeorodheshwa katika Soko la Hisa la Dar es Salaam. Pia kampeni maalum kwa ajili ya kutangaza bidhaa mpya yaani akaunti ya Malkia na huduma za kibenki kwa simu ya mkononi yaani SimBanking. Pia kampeni maalum zilifanyika kutangaza Akaunti ya Wanafunzi (Akaunti ya Scholar) na Akaunti ya Watoto (Akaunti ya Juniour Jumbo).

Benki ilifanyia maboresho na marekebisho tovuti yake (www.crdbbank.com), ili kumuwezesha mteja kuwasiliana moja kwa moja na Benki au idara husika anayotaka kuwasiliana nayo.

Mahusiano na Jamii (CSR)Benki ilitenga zaidi ya Sh. 250 milioni ili kusaidia maendeleo na ustawi wa jamii hususani katika elimu, afya na mazingira. Mchango wa Benki ulikuwa katika maeneo kama: kudhamini shindano la hisabati kule Dodoma na Tanga, ujenzi wa vyumba vya madarasa katika shule ya Sekondari Mtunduru mkoani Singida, michango kwa Mamlaka ya Elimu Tanzania (TEA) na kwa Mfuko wa Elimu wa Waziri Mkuu. MEWATA, PPF na UWT zilipata jumla ya Sh. 50 milioni ili kufanikisha mikutano na makaongamano kwa ajili ya wanachama wao. Katika makongamano na mikutano hii Benki ilipata fursa ya kutangaza bidhaa zake, huduma zake na pia kuimarisha chapa yake.

Vifaa mbalimbali vilitolewa kwa Chama cha Madaktari wa Meno Tanzania na Hospitali ya wilaya ya Mbinga – wodi ya wanawake ilipewa vitanda na magodoro, thamani ya vifaa vilivyotolewa sanjari na vitanda na magodoro ni Sh. 20 milioni.

WakaguziMkutano Mkuu wa Mwaka uliofanyika tarehe 20 Juni 2009 uliiteua kampuni ya Deloite &Touche kuwa wakaguzi katika kipindi cha taarifa hii ya mwaka.

ShukuraniBodi inapenda kuishukuru menejimenti pamoja na wafanyakazi wote ambao katika hali ngumu iliyowakabili wameonyesha ujasiri wa kipekee, heshima, mshikamano na utendaji bora katika


mwaka huu. Bodi pia inapenda kuwashukuru wateja, wanahisa na wajumbe wa Bodi za Ushauri za Benki kwa uaminifu, imani na kutuunga mkono katika kipindi hiki, kwani bila hayo hatunge�kia mafanikio tuliyopata.

KWA AMRI YA BODI

_______________ _______________MWENYEKITI MKURUGENZI

__________________ ___________________

19 Machi 2010 19 Machi 2010


Report of The DirectorsFor the year ended 31st December 2009

The Directors are pleased to present their report and the audited consolidated and separate �nancial statements of the CRDB Bank Plc for the year ended 31 December 2009.

Principal Activities and Business ReviewThe Bank is licensed under the Banking and Financial Institutions Act, 2006 and its principal activity is the provision of banking services.

The Bank is one of the major �nancial services providers in Tanzania and it is engaged in corporate and retail banking, including micro�nance services. The Bank o�ers a full range of commercial banking as well as share registration and insurance agency services. The Bank operates through a network of 60 branches (including agencies) and in partnership with 425 Micro�nance Institutions (MFIs) located throughout Tanzania Mainland and the Isles. During the year, 2 branches were refurbished, 6 new branches opened and 32 ATMs installed making the total of operating ATMs to be 132.

Deposits In 2009, customer deposits grew by 28%. As at 31 December 2008, total deposits were Tshs. 1,273 billion while at 31 December 2009 deposits had reached Tshs. 1,621 billion. The growth was attributed mainly to the Bank's brand, which continued to be strengthened by ongoing branch refurbishment, opening of new outlets, new products, and innovative marketing campaigns.

LendingThe net loan portfolio rose by 14% from Tshs. 837 billion at 31 December 2008 to Tshs. 950 billion at the end of 2009. The agricultural sector continued to dominate, accounting for over 26 % of the portfolio, followed by trade and commerce 17%, utilities and public services (including electricity, schools, hospitals and water) 13%, personal loans 12%, manufacturing and processing 7%, �nancial intermediaries 7%, real estate, building & construction 5%, tourism, hotels and restaurants 5%, transport and communication each 7%, and mining & quarrying 1%. Interest income on overdrafts and term loans was Tshs.117 billion, up from Tshs. 89 billion in year 2008 and represented 58% of the total Bank's operating income.

TreasuryIn order to provide our clients with better services and products, and also provide appropriate management information and analysis for Asset and Liability Management Committee (ALCO), the Bank implemented a Treasury Management System, branded “OPICS” in March 2009.

Foreign exchange income was Tshs. 15 billion in 2009 compared to Tshs. 13 billion in 2008; this contributed 8% of the Bank's total operating income. In year 2009, CRDB Bank was a major player in interbank funding providing Tanzanian Shillings liquidity to other banks at competitive rates.


Money market activities contributed signi�cantly to the interest income that the Bank earned in 2009; interest income on placements, treasury bills and bonds contributed 14% of the Bank's total operating income.

Other IncomeOther income includes fee based income, pro�t on disposal of properties and equipment, and amortization of grants income all of which contributed to 20% of the Bank's total operating income.

Micro�nance BusinessThe number of partnering Micro�nance Institutions (MFIs) under the micro�nance programme, increased by 49 from 376 in 2008 to 425 in 2009. As at 31 December 2009 the balance on the total loans extended by the Bank to 222 MFIs stood at Tshs. 70 billion. Their total deposits with the Bank were Tshs. 13 billion. The MFI portfolio at risk was 3%.

The Bank through its subsidiary, CRDB Micro�nance Services Company Limited, continued to support the government initiatives for improving agricultural systems through “Kilimo Kwanza” strategy by assisting the farmers to improve their productivity as well as secure better prices for their produce.

In year 2009, total loans amounting to Tshs. 14 billion were approved to 25 partner MFIs for farm mechanization including purchasing of power tillers and tractors to support farmers in modernized irrigation schemes for grape production, paddy and other crops. The warehousing receipt systems which assisted to secure better prices for cereals, cashew nuts, sugarcane and tea were also �nanced through the micro�nance arrangement.

Small and Medium Enterprises (SME)The SME loan portfolio doubled both in number of borrowers and in value during 2009. During the year 1,156 loans were approved with a total value of Tshs. 118 billion. Average loan size increased from Tshs. 30 million in 2008 to Tshs. 50 million. Total interest income, fees and charges reached Tshs. 6 billion, compared to Tshs. 4 billion of year 2008. Out of the total loan portfolio Tshs. 15 billion were loans extended to agricultural production activities i.e farm inputs and tractors. The portfolio at risk was at 1.5%.

Card BusinessDuring 2009, the Bank issued a total of 200,892 TemboCardVisa and 3,755 normal TemboCards which gives a cumulative total of 314,868 TemboCardVisa and 291,068 normal Tembocards in use as at 31 December 2009. As at 31 December 2009 a total 502 point of sale (POS) devices were at merchant outlets accepting both Visa credit and debit cards.


Information Communication Technology (ICT)The Bank started implementation of a new core banking system (the Bank Fusion – Universal Banking from Misys). In tandem with this the Bank also acquired a Trade Finance System and Mobile (Cell phone) banking system trading under the brand name CRDB SimBanking.

Future DevelopmentsThe year 2009 was the second year in implementation of the Bank's Strategic Business plan for 2008-2012. In this plan the Bank continues to focus on retail banking by o�ering quality products and services through enhanced network expansion, better use of e-banking delivery channels, and enhancements to the Bank's technological platform. The Bank will continue to o�er customized banking services to corporate and institutional customers as well as take measures to improve risk management. The challenge ahead is building capacity and infrastructure for provision of services to all segments of customers.

Financial ResultsThe Bank recorded a pro�t before tax and provision for loan losses of Tshs. 80 billion in 2009 compared to Tshs. 65 billion in 2008 representing an increase of 23% on the previous year result. However, the Bank increased its provisions for loan losses by Tshs. 18 billion during 2009 compared with Tshs. 5 billion in 2008 due to deterioration of loan portfolio performance on account of the global �nancial crisis. In tandem, the Government intervened and provided a rescue package of which a total of Tshs. 8.9 billion was received during the year in respect of losses incurred by cotton buyers, and with a further Tshs. 9.3 billion received in February 2010. The Bank realized a pre tax pro�t of Tshs. 62 billion in year 2009 compared to Tshs. 60 billion last year marking an increase of 3%.

SolvencyThe state of a�airs of the Group as at 31 December 2009 is set out on page 68 of the �nancial statements. The Directors consider the Group to be solvent within the meaning ascribed by the Tanzania Companies Act 2002 and Banking and Financial Institution Act, 2006.

Share CapitalDuring the year 2009, there was an increase in the number of authorized shares from 1,000,000,000 to 4,000,000,000 shares as a result of the share split of 1:4. Also there was an increase in issued and fully paid up share through a rights issues; thus the capital of the Bank increased from 247,333,200 to 2,176,532,160 ordinary shares at the end of the year. These changes resulted from the resolutions made at the Extraordinary General Meeting held on 6th December, 2008 which were implemented in January, 2009. The changes in the number of shares from January, 2009 were as follows:


Event Date Number of shares Nominal value Amount – (Tshs.)

Opening Balance 1 Jan. 2009 247,333,200 100 24,733,320,000

After Bonus Shares – 1:1 6 Jan. 2009 494,666,400 100 49,466,640,000

After Share Split – 1:4 6 Jan. 2009 1,978,665,600 25 49,466,640,000

After Rights Issue – 1:10 9 Mar. 2009 2,176,532,160 25 54,413,304,000

Initial Public O�er (IPO) and ListingDuring the year, the Board of Directors made a decision to o�er to the public and list the Bank’s shares at the Dar es Salaam Stock Exchange (DSE). The reasons for listing were as follows;

(i) to increase the options for raising capital;(ii) to enhance public image of the Bank; and(iii) to allow trading of Bank’s shares at the stock exchange.

The Bank was able to raise a net capital of Tshs. 16.5 billion and it was listed at DSE on 17 June 2009.

DividendsThe Directors will recommend to the Annual General Meeting a dividend payment of Tshs. 7 per share. The total amount of dividend to be recommended will be Tshs.15.2 billion.

DirectorsThe Directors who served the Bank since 1 January 2009 up to the date of this report except as otherwise indicated are:

No. Name Position Nationality Quali�cation

1. Mr. Martin J. Mmari Chairman Tanzanian CPA(T), MBA (Int. Bank & Fin)

2. Mr. Juma A. Abdulrahman Member from 2 August 2009 Tanzanian CISA, MSc (Fin), FCPA.

3. Ms. Joyce W. Luhanga Member Tanzanian M.A (Econ) Planning

4. Mrs. Lydia M. Joachim Member Tanzanian M.A (Econ)Pop studies

5. Mr. Joseph C. Machange Member Tanzanian MSc. (Syst. Eng)

6. Mr. Kai Kristo�ersen Member Danish LLM, B.Com

7. Mr. Bede P. Lyimo Member Tanzanian MBA, BA

8. Mr. Boniface C. Muhegi Member Tanzanian M.Sc. (Eng)

9. Mr. Ally H. Laay Member Tanzanian ADA, PGDA, FCPA (T), MBA (Finance and Marketing)

10. Dr. Sylvia S. Temu Member (retired June 2009) Tanzanian PhD, Masters of Management Studies

11. Mrs. Joyce N. Nyanza Member Tanzanian MBA, ADA

12. Dr. Charles S. Kimei Member (ex–o�cio) Tanzanian PhD (Money & Finance) MA, B.Sc (Eco)

13. Mr. Jens Ole Pedersen Member (Deputy Managing Danish Dip (Fin) Director ex o�cio) Dip (Org.Dev)


At the Annual General Meeting held on 20 June 2009, DK. Sylivia Temu for DANIDA Investment Fund, Ms. Joyce W. Luhanga from shareholders with more than 1% of the Bank's Share capital and Mr. Joseph C. Machange from shareholders with less than 1 % of the Bank's Share capital retired. Ms. Joyce W. Luhanga and Mr. Joseph C. Machange stood for re-election and were re-elected. Mr. Juma A. Abdulrahman was also elected from shareholders with less than 1% of the Bank’s share capital.

Directors Interest in the Issued Share CapitalDirectors' interest in the shares of the Bank for the year 2009 is summarized below:

Name 2009 2008 Number of shares Percentage Number of shares Percentage

Mr. Ally H. Laay 300,945 0.01 42,000 0.02

Mr. Boniface C. Muhegi 1,689,541 0.08 178,320 0.07

Dr. Charles S. Kimei 450,220 0.02 49,800 0.02

Mr. Joseph C. Machange 205,125 0.009 13,500 0.01

Ms. Joyce W. Luhanga 52,800 0.002 6,000 0.002

Mrs Joyce N. Nyanza 405,025 0.02 44,000 0.02

Mrs. Lydia M.Joachim 973,825 0.04 106,500 0.04

Mr. Martin J. Mmari 950,400 0.04 108,000 0.04

Dr. Sylvia S. Temu 76,800 0.004 - -

Mr. Juma A. Abdulrahman 241,660 0.01 28,710 0.01

Remuneration of DirectorsAll Directors except the 2 ex-o�cio members were non-executive. Remuneration for non executive Directors was approved by the last Annual General Meeting. Total fees paid for the year were Tshs. 236 million.

Signi�cant ShareholdingThe Bank's Articles of Association recognizes three categories of shareholders, namely shareholders holding 10% and more of the total paid up shares, shareholders holding between 1% but below 10% of the total paid up shares; and shareholders holding less than 1%. As at the end of the year, the shareholding of these three groups was as follows:

Group of shareholders 2009 2008 Number of shares Percentage Number of shares Percentage

10% and more 685,183,680 31.5 74,104,200 30.0

1% but below 10% 409,268,775 18.8 56,032,980 22.6

Less than 1% 1,082,079,705 49.7 117,196,020 47.4

2,176,532,160 100.0 247,333,200 100.0


Shareholders holding 1% or more are listed hereunder:

2009 2008

Group of shareholders Number of shares Percentage Number of shares Percentage

Danida Investment Fund 467,781,934 21.5 74,104,200 30.0

Parastatal Pension Fund 217,401,746 10.0 15,000,000 6.1

IPP Limited 117,405,600 5.4 13,950,000 5.6

Public Service Pension Fund 71,532,250 3.3 - 0.0

The Local Authorities Pension Fund 36,039,625 1.7 2,760,000 1.1

Western Zone Tobacco Growers Cooperation 36,000,000 1.7 4,500,000 1.8

Hans Aingaya Macha 28,082,800 1.3 3,000,000 1.2

CMG Investment Ltd 26,143,260 1.2 2,674,200 1.1

SHIRECU 26,000,000 1.2 3,250,000 1.3

Epack Investment Fund 24,790,240 1.1 3,098,780 1.2

Lindi Development Fund 21,660,000 1.0 2,700,000 1.1

Kagera Coop Union (1990) Ltd 21,615,000 1.0 5,100,000 2.1

TOTAL 1,094,452,455 50.3 130,137,180 52.6

Related Party TransactionsAs at 31 December 2009 Board Members, Mr Ally H. Laay, Mrs. Joyce N. Nyanza, and Dr. Charles S. Kimei had personal outstanding loan balances of Tshs. 12 million, Tshs. 59 million and Tshs. 43 million respectively.

Employee WelfareAs at 31 December 2009 the Bank had 1,311 employees out of whom 806 (62%) were males and 505 (38%) females. The annual growth in sta�ng was 5% as compared with 7.4% in the year 2008. This is in keeping with the overall growth of the Bank and its outlets. At management level 24.8% were female.

The Bank is an equal opportunity employer. It gives equal access to employment opportunities and ensures that the best available person is appointed to any given position free from discrimination of any kind and without regard to factors like gender, marital status, tribe, religion and disability which does not impair ability to discharge duties.

In the year 2009 the Bank recruited 136 employees of which 96 (71%) were males and 40 (29%) were females. Most of the recruits were entry level hires (i.e. Bank O�cer Trainees and Bank Teller Trainees). The bank promotes from within whenever possible, hence, during the period the recruitment of senior sta� was relatively low.


In the year 2009 the Bank focused on activities that created more awareness on HIV/AIDS among sta� members by providing them with updated information on HIV/AIDS with an emphasis on the preventive strategies and education against the pandemic. The Bank has integrated HIV/AIDS awareness programmes into the induction programme and other training conducted by the Bank.

Peer Health Educators from all business units were trained in year 2009 and all sta� were encouraged to continue participating in the voluntary testing national campaign.

MarketingThe Bank continued employing strategic marketing mix to increase public awareness of its products and services, delivery channels as well as strengthening its corporate brand. The Bank also conducted feasibility studies to assess viability of locations for outlets.

The Bank participated in various forums and trade exhibitions, including the Farmer’s Day (“Nane Nane”) exhibitions in Dodoma, Arusha and Kahama; Karibu Tourism Fair in Arusha as well as National May Day exhibitions in Musoma. The Bank also conducted Co�ee Forum in Mbeya and Cotton Forum in Shinyanga for its borrowing customers.

During the year, the Bank conducted marketing campaigns to support the IPO and listing of the Bank’s shares at the Dar es Salaam Stock Exchange (DSE) and also the launch of Malkia Account and Cellphone banking service branded CRDB SimBanking. Scholar account and Junior Jumbo were also extensively promoted.

The Bank revamped its website (www.crdbbank.com). The new website allows customers to select the business unit they wish to communicate with and follow up status of their enquiries.

Corporate Social ResponsibilityThe Bank committed over Tshs 250 million to support social responsibility activities in the areas of education, health and environment as well as participation in conferences. These included sponsorship of mathematics competition in Dodoma and Tanga, construction of class rooms at Mtunduru Secondary school in Singida and support to Tanzania Education Authority and Prime Minister's Education Trust. MEWATA, PPF and UWT received a total of Tshs 50 million for organizing conferences for its members where the Bank had opportunity to market and sell its products and services. Tanzania Dental Association and Mbinga Government Hospital also received a total of Tshs. 20 million for purchase of equipment, and beds and mattresses for women's wards respectively.


AuditorsThe Annual General Meeting held on 20 June 2009 appointed Deloitte & Touche as auditors of the Bank for the year under review.

Acknowledgement The Board wishes to thank the management and all employees who in the face of adversity have shown exemplary courage, dignity, solidarity and for the good performance during the year. The Board also wishes to express its appreciation to the customers, shareholders and Branch Advisory Committee members of the Bank for their commitment, trust and support during the period without which these results would not have been achieved.

BY ORDER OF THE BOARD

_________________________ _______________________Chairman Director

_____________________ ____________________

19th March 2010 19th March 2010

_________________________ _______________________


Tamko la WakurugenziUtawala Bora kwa Mwaka Ulioishia 31 Desemba, 2009

Wakurugenzi wanaridhia kuwa utawala bora ni nguzo muhimu ya utendaji bora wa Benki. Hivyo basi, wakurugenzi wameendelea kukazia mifumo ya utawala bora kwa kuboresha sera, Bodi na kazi za kamati za Bodi na utawala wa Benki kwa ujumla. Mwongozo wa Bodi na mikataba ya kamati za Bodi vilirekebishwa mwaka huu zikiwemo pia sera za Benki.

Muundo wa BodiBodi inajumuisha wakurugenzi 12 ndani yao wakiwemo 10 wasio watendaji rasmi. Mkurugenzi Mtendaji na naibu Mkurugenzi Mtendaji ni wajumbe kutokana na nyadhifa zao. Mwenyekiti ambaye si mtendaji huchaguliwa na wakurugenzi kila mwaka kuongoza Bodi.

Mikutano wa Bodi Bodi ilifanya mikutano nane kwa mwaka. Mkutano mmojawapo ulijikita katika kupitia na kutengeneza mikakati ya kibiashara ya Benki.

KamatiHadi ku�kia 31 Desemba, 2009 Bodi ilikuwa na kamati tatu ambazo ni Kamati ya Ukaguzi wa Mahesabu, Kamati ya Utawala Bora na Usimamizi wa Mali na Kamati ya Mikopo. Kazi za kamati zinasimamiwa na muongozo wa kamati ulioidhinishwa na Bodi. Kwa uchache kabisa, kamati hukutana mara nne kwa mwaka.

Kamati ya Ukaguzi wa Hesabu

Jina Nafasi

Bw. Ally H Laay Mwenyekiti kuanzia Oktoba, 2009

Bi. Joyce N. Nyanza Mjumbe

Bw. Joseph C. Machange Mjumbe

Bw. Juma A. Abdurahman Mjumbe kuanzia Oktoba, 2009

Bw. Kai Kristo�ersen Mjumbe

Dk. Sylvia S. Temu Mwenyekiti mstaafu tangu Juni, 2009

Kamati ilifanya mikutano mitano katika mwaka 2009. Wakaguzi wa nje walialikwa na kuhudhuria mikutano miwili. Mkurugenzi Mtendaji, Naibu Mkurugenzi Mtendaji, Mkurugenzi wa Fedha na Utawala na Mkurugenzi wa Ukaguzi wa Mahesabu ya ndani walihudhuria mikutano hiyo.


Kamati ya Utawala Bora na Usimamizi wa Hatari ya Hasara

Jina Nafasi

Bw. Martin J. Mmari Mwenyekiti

Bw. Bede p. Lyimo Mjumbe

Bw. Joseph C. Machange Mjumbe

Bw. Kai Kristo�ersen Mjumbe

Bw. Joyce N. Nyanza Mjumbe kuanzia Julai, 2009

Dk. Sylvia S. Temu Mjumbe aliestaafu Juni, 2009

Kamati ilikutana mara nne katika mwaka. Mkurugenzi Mtendaji, Naibu Mkurugenzi Mtendaji, Mkurugenzi wa Hazina na Mkurugenzi wa Usimamizi wa Hatari ya Hasara walihudhuria mikutano hiyo.

Kamati ya Mikopo

Jina Nafasi

Bw. Martin J. Mmari Mwenyekiti

Bi. Bede P. Lyimo Mjumbe

Bi. Joyce N. Luhanga Mjumbe

Bw. Ally H. Laay Mjumbe

Bw. Boniface C. Muhegi Mjumbe

Kamati ilikutana mara kumi na moja kwa mwaka. Mkurugenzi Mtendaji, Naibu Mkurugenzi Mtendaji na Mkurugenzi wa Mikopo walihudhuria mikutano hiyo.

Uteuzi wa WakurugenziBodi hupitia maombi ya waombaji wa nafasi za ujumbe wa bodi ukizingatia muongozo wa kipengele cha sheria za Taasisi za Fedha na Asasi za Fedha ya mwaka 2006 na katiba ya Benki. Kila mjumbe anayemiliki asilimia 10 ya hisa zilizotolewa na kulipiwa ana haki ya kuchagua mkurugenzi. Hivyo, wakala wa mfuko wa wa uwekezaji wa Denmark (DANIDA) huteua wakurugenzi wawili na Mfuko wa Pensheni wa Mashirika ya umma huteua mkurugenzi mmoja.

Wajumbe wenye asilimia 1 hadi 10 za hisa zilizotolewa na kulipiwa kwa pamoja wana haki ya kuchagua mjumbe mmoja wa Bodi kwa kila asilimia 10 ya hisa zilizotolewa ikizingatiwa katika hisa hizo hakuna zinazo�kia asilimia 10 kutoka kwa mmoja wapo kwa kuwa mwenye hisa zinazo�kia asilimia 10 ana haki ya kuchagua Mkurugenzi wa Bodi. Wanahisa wenye hisa pungufu ya asilimia moja zinazotolewa na kulipiwa kwa pamoja wanachagua mkurugenzi mmoja na mwingine kwa kila aslimia kumi za hisa walizonazo.


Kozi ya AwaliWakurugenzi hupitia kozi fupi ili kupata uzoefu wa masuala ya kibenki na uongozi. Kozi hii imelenga kuwapa uwezo stahili wa kazi husika.

Wakurugenzi walihudhuria mafunzo juu ya umuhimu wa kuwakopesha wafanyabiashara wa biashara ndogo na za kati, jinsi ya kujiunga na soko la hisa na uendeshaji wa matawi ya benki.

Kupima Utendaji wa WakurugenziSambamba na muongozo wa Bodi, wakurugenzi walitathmini utendajiwa Bodi. Kila kamati pia ilifanya utathmini wake. Maeneo yenye mapungufu yaliainishwa na matokeo yake hutumika kuboresha utendaji kwa mwaka unaofuatia.

Mahusiano ya WanahisaBenki ilitoa jalada la wanahisa mara mbili kwa mwaka lililosheheni habari za utendaji wa benki, maswali yenye kuulizwa mara nyingi na majibu pamoja na bidhaa na huduma za benki. Mikutano ya matawi ya wanahisa ilifanyika mwezi Aprili kwa matawi maalumu ambapo matokeo ya mwaka ya utendaji wa benki yalijadiliwa. Kamati za ushauri wa matawi zilikutana mara nne kwa mwaka. Masuala na mapendekezo yaliyotolewa katika mkutano yaliwakilishwa kwenye Bodi kwa utekelezaji na kupatiwa majibu.

Semina iliyohusu ushauri wa mapendekezo ya kubadili katiba na muongozo wa benki na taratibu za uuzwaji na ununuzi wa hisa za Benki ilifanyika katika kipindi cha Mkutano Mkuu wa Benki. Kwa nyongeza, semina zilifanyika katika mikoa mbalimbali juu ya kujiunga na Soko la Hisa la Dar es Salaam.

Mahusiano na Wakaguzi wa MahesabuKamati ya ukaguzi wa mahesabu na Bodi vilifanya mkutano na wakaguzi wa nje kuhusu vipengele vihusuvyo mahusiano na wakaguzi, kazi za wakaguzi na mambo mengine mbalimbali.

Mkutano Mkuu wa Mwaka.Mkutano mkuu wa mwaka ulifanyika tarehe 20 Juni 2009 mjini Arusha ambapo ajenda zilizowakilishwa kama ilivyoainishwa kwenye Katiba ya Benki iliwakilishwa na kujadiliwa. Maboresho ya Katiba na Muongozo wa Benki yalipitishwa kwenye mkutano.

KWA IDHINI YA BODI

_______________________ ________________________

Mwenyekiti Mkurugenzi

_______________________ _______________________ 19 Machi 2010 19 Machi 2010

_______________________ ________________________


Directors’ Statement onCorporate Governance

For the year Ended 31st December 2009

The Directors consider corporate governance a key to good performance of the Bank. In view of this, the Directors continued to strengthen good governance systems by reviewing policies, Board and Board committees' activities and general management of the Bank. Board guidelines and committees’ charters were reviewed during the year as well as policies of the Bank.

Board StructureThe Board comprises of 12 Directors out of whom 10 are non-executive. The Managing Director and Deputy Managing Director are ex o�cio members. A non-executive Chairman, who is elected by Directors every year, leads the Board.

Board MeetingsThe Board held eight meetings during the year. One of the meetings was devoted to the review and development of the Bank's business strategy.

CommitteesAs at 31 December 2009 the Board had three Committees namely the Audit Committee, the Governance and Risk Management Committee, and the Credit Committee. The activities of the Committees are governed by the respective Committee Charters approved by the Board. The Committees meet a minimum of four times a year.

Audit Committee

Name Position

Mr. Ally H. Laay Chairperson from October 2009

Mrs. Joyce N. Nyanza Member

Mr. Joseph C. Machange Member

Mr. Juma A. Abdulrahman Member from October 2009

Mr. Kai Kristo�ersen Member

Dr. Sylvia S. Temu Chairperson retired June 2009

The Committee held �ve meetings during the year. The external auditors were invited and attended two meetings. The Managing Director, Deputy Managing Director, Director of Finance & Administration and the Director of Internal Audit participated in the meetings.


Governance and Risk Management CommitteeName Position

Mr. Martin J. Mmari Chairperson

Mr. Bede P. Lyimo Member

Mr. Joseph C. Machange Member

Mr. Kai Kristo�ersen Member

Mrs. Joyce N. Nyanza Member from July, 2009

Dr. Sylvia S. Temu Member retired June, 2009

The Committee met four times during the year. The Managing Director, the Deputy Managing Director, Director of Treasury and Director of Risk participated in the meetings.

Credit CommitteeName Position

Mr. Martin J. Mmari Chairperson

Mrs. Lydia M. Joachim Member

Ms. Joyce N. Luhanga Member

Mr. Ally H. Laay Member

Mr. Boniface C. Muhegi Member

The committee met eleven times during the year. The Managing Director, the Deputy Managing Director and the Director of Credit participated in the meetings.

Appointment of DirectorsThe Board reviews applications from candidates for board membership in conformity with the Banking and Financial Institutions Act 2006 and the Bank's Articles of Association. Every member owning 10% of the issued and fully paid up share capital of the Bank is entitled to appoint one director. Consequently the Danish International Development Agency (DANIDA) Investment Fund appoints two directors and Parastatal Pension Fund appoints one director.

Members owning between 1% and 10% of the issued and fully paid up shares of the Bank are jointly entitled to elect one director for every 10% of shares held provided that any part of 10% which does not by itself add up to a whole 10% is not entitled to elect a director. Shareholders having shares less than 1% of the issued and fully paid up share capital of the Bank jointly elect one director and additionally one director for every 10% of shares held.

Induction TrainingThe Directors undergo an orientation programme to expose them to the activities of the Bank


and governance matters. Directors' development and training is tailored to meet individual requirements. The Directors attended training during the year on the role of �nancing SMEs, stock exchange listing requirements and branch operations.

Directors’ Performance EvaluationIn line with the Board guidelines the directors evaluated the performance of the Board. Each committee also conducted its evaluation. Areas of weakness were noted and results are used for performance improvement in the coming year.

Shareholders RelationsThe Bank issued two newsletters (“Mwanahisa”) to shareholders providing them information on the Bank's performance, frequently asked questions and products and services o�ered by the Bank. Shareholders’ meetings were held in selected branches in April 2009 during which the Bank’s performance was discussed. Branch Advisory Committees met four times during the year. Issues and recommendations raised in the meetings were presented to the Board for consideration and feedback.

A seminar covering the proposed amendments to the Memorandum and Articles of Association of the Bank and Procedures of selling and buying CRDB Bank shares was held on the eve of the Annual General Meeting. In addition, seminars were conducted in various regions on trading and listing at Dar es Salaam Stock Exchange.

Relationship with AuditorsThe Audit Committee and the Board held meetings with the External Auditors to discuss terms of engagement of the Auditors, the work of the auditors and other various issues.

Annual General MeetingThe Annual General Meeting was held on 20 June 2009 in Arusha during which the standing agenda as provided in the Articles of Association was presented and transacted. Amendments to the Memorandum and Articles of Association of the Bank were passed at the same meeting.



_______________________ _________________________19th March 2010 19th March 2010

_________________________ _______________________


Tamko la WakurugenziWajibu

Sheria ya makampuni ya mwaka 2002 inawataka wakurugenzi kuandaa taarifa ya kufunga hesabu za kila mwisho wa mwaka inayotoa ukweli na usawa wa masuala ya Kundi la kampuni kwenye taarifa ya mwaka wa fedha na kwenye taarifa ya utendaji wa Kundi kwa mwaka huo. Pia inahitaji wakurugenzi kuhakikisha kwamba kundi linatunza hesabu halisi inayoweka wazi na ukweli wakati wote hali halisi ya mahesabu ya kundi. Pia wanahusika kutunza amana za Kundi la kampuni.

Wakurugenzi wanawajibu wa katika kuandaa na kuwasilisha taarifa ya fedha inayokidhi viwango vya uwasilishaji hesabu za fedha vya kimataifa na sheria za makampuni ya mwaka 2002. Jukumu hili linahusisha, uundaji, utekelezaji na utunzaji mifumo ya ndani ya udhibiti katika uandaaji na uwasilishaji taarifa sahihi za mahesabu zilizo huru dhidi ya vitu vya upotoshaji taarifa, iwe kwa udanganyifu au kwa kukosea, kuchagua na kutumia sera sahihi za kiuhasibu, na kufanya makadirio yenye uhalisia.

Wakurugenzi wanakubali jukumu la utoaji taarifa ya mwaka wa mahesabu, ambazo zimeandaliwa kwa kutumia taratibu bora za utunzaji mahesabu zinazosaidiwa na maamuzi na makadirio sahihi kwa kuzingatia viwango vya utoaji taarifa za mahesabu vya kimataifa na kwa namna inavyohitajika na sheria za makampuni ya mwaka, 2002.

Wakurugenzi wanaridhia kuwa taarifa za fedha za mwaka zinatoa ukweli na usawa wa masuala ya Kundi kwenye taarifa ya mwaka wa fedha na kwenye taarifa ya utendaji wa Kundi. Wakurugenzi wanaendelea kukubali majukumu ya utunzaji kumbukumbu za mahesabu ambayo yanaweza kusaidia katika uandaaji wa taarifa za hesabu, pamoja na mfumo mzuri wa udhibiti wa mahesabu ya ndani.

Hakuna jambo lolote lililoleta hisia kwa wakurugenzi kwamba Kundi halitabakia katika muendelezo kwa walau kipindi kingine cha miezi kumi na miwili kunzia tarehe ya taarifa hii.

KWA IDHINI YA BODI

_____________________ _________________________Mwenyekiti Mkurugenzi

_____________________ ____________________19 Machi 2010 19 Machi 2010

_________________________


Statement of The Directors’Responsibilities

The Tanzania Companies Act 2002 (“Companies Act 2002) requires Directors to prepare �nancial statements for each �nancial year which give a true and fair view of the state of a�airs of the Group and the Bank as at the end of the �nancial year and of the operating results of the Group and the Bank for that year. It also requires the Directors to ensure that the Group keeps proper accounting records which disclose with reasonable accuracy at any time the �nancial position of the Group and the Bank. They are also responsible for safeguarding the assets of the Group.

The Directors are responsible for the preparation and fair presentation of these �nancial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act 2002. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of �nancial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.

The Directors accept responsibility for the annual �nancial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with International Financial Reporting Standards and in the manner required by the Companies Act 2002. The Directors are of the opinion that the �nancial statements give a true and fair view of the state of the �nancial a�airs of the Group and of its operating results. The Directors further accept responsibility for the maintenance of accounting records which may be relied upon in the preparation of �nancial statements, as well as adequate systems of internal �nancial control.

Nothing has come to the attention of the Directors to indicate that the Group will not remain a going concern for at least the next twelve months from the date of this statement.



_____________________ ________________________19th March 2010 19th March 2010

_________________________ _______________________

Ya kipekee kwaajili yako!

Mpango maalum wa akibakwa ajili ya wanawake

wenye nia ya kuwekezaili kutimiza ndoto zao.


Report of the Independent AuditorsTo The Members of CRDB Bank Plc

We have audited the accompanying �nancial statements of CRDB Bank Plc set out on pages 67 to 128 which comprise the consolidated and parent company statements of �nancial position as at 31 December 2009, and the consolidated and parent company statements of comprehensive income, consolidated and parent company statements of changes in equity and consolidated and parent company statements of cash �ows for the year then ended, and a summary of signi�cant accounting policies and other explanatory notes.

Directors’ Responsibility for the Financial StatementsThe directors are responsible for the preparation and fair presentation of these �nancial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act 2002. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of �nancial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility Our responsibility is to express an opinion on these �nancial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the �nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the �nancial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the �nancial statements, whether due to fraud or error. In making those risk assessments, we considered the internal controls relevant to the entity’s preparation and fair presentation of the �nancial statements in order to design audit procedures that were appropriate in the circumstances, but not for the purpose of expressing an opinion on the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the �nancial statements.

We believe that the audit evidence we have obtained is su�cient and appropriate to provide a basis for our audit opinion.


OpinionIn our opinion, the accompanying �nancial statements give a true and fair view of the state of �nancial a�airs of the Bank and its subsidiary as at 31 December 2009 and of Group’s pro�t and cash �ows for the year then ended in accordance with International Financial Reporting Standards and comply with the requirements of the Companies Act 2002 and the Banking and Financial Institutions Act, 2006.

Report on other Legal Requirements As required by the Companies Act 2002 we report to you, based on our audit, that:

i) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

ii) in our opinion, proper books of account have been kept by the Group, so far as appears from our examination of those books; and

iii) the consolidated and Bank’s statements of �nancial position and statement of comprehensive income are in agreement with the books of account.

Certi�ed Public Accountants (T )Dar es Salaam

Signed by : D. C. Nchimbi

______________________19th March 2010


Consolidated and Bank Statements ofComprehensive Income

For the year ended 31st December 2009

GROUP BANK

2009 2008 2009 2008 Notes Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Interest income 7 145,644,425 112,233,009 143,318,703 110,286,570

Interest expense 8 (35,676,488) (20,798,706) (35,925,492) (20,846,501)

Net interest income 109,967,937 91,434,303 107,393,211 89,440,069

Loan impairment charges 17 (d) (18,173,747) (5,019,196) (18,173,747) (5,019,196)

Net interest income after loan

impairment charges 91,794,190 86,415,107 89,219,464 84,420,873

Fee and commission income 9 39,524,884 30,765,196 39,065,844 30,634,219

Fee and commission expense (414,002) (540,996) (414,002) (540,996)

Net fee and commission income 39,110,882 30,224,200 38,651,842 30,093,223

Net foreign exchange income 10 15,243,855 13,040,670 15,243,855 13,040,670

Other operating income 11 1,113,262 1,129,321 183,017 356,268

General and administrative expenses 12 (44,931,239) (36,573,565) (43,458,500) (35,157,177)

Sta� costs 13 (40,409,415) (34,230,865) (37,968,724) (32,989,808)

Pro�t before income tax 61,921,535 60,004,868 61,870,954 59,764,049

Income tax expenses 14(a) (16,096,899) (19,495,967) (15,813,730) (19,507,393)

Pro�t for the year 45,824,636 40,508,901 46,057,224 40,256,656

Other comprehensive income:

Gain on revaluation of equipment 24 1,146,489 - 1,016,671 -

De�ned bene�t gain 40 510,029 - 510,029 -

Total comprehensive income for the year 47,481,154 40,508,901 47,583,924 40,256,656


Consolidated and Bank Statementsof Financial Position

As at 31st December 2009

GROUP BANK

Notes 2009 2008 2009 2008 Tshs‘000 Tshs‘000 Tshs‘000 Tshs‘000

ASSETS Cash and balances with Bank of Tanzania 15 313,645,087 184,642,082 313,645,087 184,642,082Placements and balances with other Banks 16 252,605,127 140,455,690 252,605,127 140,455,690Loans and advances to customers 17 949,505,036 836,803,220 949,505,036 836,803,220Government securities 18 252,976,601 205,719,650 252,976,601 205,719,650Other securities 19 1,616,883 3,703,213 1,616,883 3,703,213Equity investment 20 - - 728,136 728,136Other assets 21 31,425,014 45,369,801 31,114,699 44,828,322Refurbishment costs 22 6,723,176 3,336,910 6,723,176 3,336,910Intangible assets 23 3,934,462 1,183,652 3,632,856 1,183,652Property and equipment 24 36,024,737 26,122,050 35,147,652 25,567,194Prepaid operating leases 26 734,347 401,433 734,347 401,433Current income tax asset 30 4,957,486 455,556 4,763,771 352,392Deferred income tax asset 37 209,020 1,603,860 326,496 1,592,434De�ned bene�t asset 40 510,029 - 510,029 -Assets classi�ed as held for sale 25 - 3,311 - 3,311 TOTAL ASSETS 1,854,867,005 1,449,800,428 1,854,029,896 1,449,317,639

LIABILITIES AND SHAREHOLDERS’ FUNDS Deposits from customers 27 1,621,018,882 1,273,081,596 1,621,451,846 1,273,601,357Deposits from and loans due to other Banks 28 3,775,915 3,351,419 3,775,915 3,351,419Other liabilities 29 19,981,750 30,004,756 19,259,290 29,704,179Subordinated loan capital 31 1,920,000 1,920,000 1,920,000 1,920,000FDCF Grant 32 - 60,294 - 60,294RFSP Grant 35 57,750 115,500 - -FSDT Grant 34 300,543 334,228 - -CRDB Grant 36 38,026 - - -

TOTAL LIABILITIES 1,647,092,866 1,308,867,793 1,646,407,051 1,308,637,249 SHAREHOLDERS’ FUNDS Share capital 38 54,413,304 24,733,320 54,413,304 24,733,320Revenue reserve 132,587,835 116,173,610 132,566,359 115,921,365Share premium 18,764,932 - 18,764,932 -Statutory reserve 351,550 25,705 351,550 25,705De�ned bene�t reserve 510,029 - 510,029 -Revaluation reserve 1,146,489 - 1,016,671 -TOTAL SHAREHOLDERS’ FUNDS 207,774,139 140,932,635 207,622,845 140,680,390

TOTAL LIABILITIES AND SHAREHOLDERS’ FUNDS 1,854,867,005 1,449,800,428 1,854,029,896 1,449,317,639

The �nancial statements on pages 67 to 128 were approved by the Board of Directors on 19 March 2010 and signed on its behalf by:

________________ ________________ ________________ Mr. Martin Mmari Dr. Charles Kimei Ms. Joyce Luhanga Chairman Managing Director Director

________________ ________________ ________________


Stat

emen

t of C

hang

es in

Equ

ity

For t

he y

ear e

nded

31st

Dec

embe

r 200

9

De�

ned

Sh

are

Capi

tal

Shar

e Re

tain

ed

Stat

utor

y Re

valu

atio

n Be

ne�t

Prem

ium

**

Ear

ning

s Re

serv

e Re

serv

e R

eser

ve

Tota

lG

ROU

P Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

At 1

Janu

ary

2008

24

,733

,320

-

79,6

32,7

54

262,

324

- -

104,

628,

398

Tota

l com

preh

ensi

ve in

com

e fo

r the

yea

r -

- 40

,508

,901

-

- -

40,5

08,9

01

Tran

sfer

to/f

rom

sta

tuto

ry re

serv

e*

- -

236,

619

(236

,619

) -

- -

Div

iden

d pa

id

- -

(4,2

04,6

64)

- -

- (4

,204

,664

)

At 3

1 D

ecem

ber 2

008

24,7

33,3

20

- 11

6,17

3,61

0 25

,705

-

- 14

0,93

2,63

5

At 1

Janu

ary

2009

24

,733

,320

-

116,

173,

610

25,7

05

- -

140,

932,

635

Issu

e of

bon

us s

hare

24

,733

,320

-

(24,

733,

320)

-

- -

-

Righ

t Iss

ue**

**

4,28

4,25

4 18

,764

,932

-

- -

- 23

,049

,186

Issu

e of

sha

res

thro

ugh

Initi

al P

ublic

O�e

r***

* 66

2,41

0 -

- -

- -

662,

410

54

,413

,304

18

,764

,932

91

,440

,290

25

,705

-

- 16

4,64

4,23

1

Pro�

t for

the

year

-

- 45

,824

,636

-

- -

45,8

24,6

36

Oth

er c

ompr

ehen

sive

inco

me

for t

he y

ear

- -

- -

1,14

6,48

9 51

0,02

9 1,

656,

518

Tota

l com

preh

ensi

ve in

com

e fo

r the

yea

r -

- 45

,824

,636

-

1,14

6,48

9 51

0,02

9 47

,481

,154

Stat

utor

y re

serv

e*

- -

(325

,845

) 32

5,84

5 -

- -

Div

iden

d pa

id

- -

(4,3

51,2

46)

- -

- (4

,351

,246

)

At 3

1 D

ecem

ber 2

009

54,4

13,3

04

18,7

64,9

32

132,

587,

835

351,

550

1,14

6,48

9 51

0,02

9 20

7,77

4,13

9


Stat

emen

t of C

hang

es in

Equ

ity

For t

he y

ear e

nded

31st

Dec

embe

r 200

9

De�

ned

Sh

are

capi

tal

Shar

e Re

tain

ed

Stat

utor

y Re

valu

atio

n Be

ne�t

Prem

ium

**

Ear

ning

s Re

serv

e Re

serv

e R

eser

ve

Tota

lBA

NK

Tshs

‘000

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Tshs

‘000

At 1

Janu

ary

2008

24

,733

,320

-

79,6

32,7

54

262,

324

- -

104,

628,

398

Tota

l com

preh

ensi

ve in

com

e fo

r the

yea

r -

- 40

,256

,656

-

- -

40,2

56,6

56

Tran

sfer

to s

tatu

tory

rese

rve*

-

- 23

6,61

9 (2

36,6

19)

- -

-

Div

iden

d pa

id

- -

(4,2

04,6

64)

(4

,204

,664

)

At 3

1 D

ecem

ber 2

008

24,7

33,3

20

- 11

5,92

1,36

5 25

,705

-

- 14

0,68

0,39

0

At 1

Janu

ary

2009

24

,733

,320

-

115,

921,

365

25,7

05

- -

140,

680,

390

Issu

e of

bon

us s

hare

s 24

,733

,320

-

(24,

733,

320)

-

- -

-

Righ

ts is

sue

***

4,28

4,25

4 18

,764

,932

-

- -

- 23

,049

,186

Issu

e of

sha

res

thro

ugh

Initi

al P

ublic

O�e

r ***

* 66

2,41

0 -

- -

- -

662,

410

54

,413

,304

18

,764

,932

91

,188

,045

25

,705

-

- 16

4,39

1,98

6

Pro�

t for

the

year

-

- 46

,057

,224

-

- -

46,0

57,2

24

Oth

er c

ompr

ehen

sive

inco

me

for t

he y

ear

- -

- -

1,01

6,67

1 51

0,02

9 1,

526,

700

Tota

l com

preh

ensi

ve in

com

e fo

r the

yea

r -

- 46

,057

,224

-

1,01

6,67

1 51

0,02

9 47

,583

,924

Tran

sfer

to/f

rom

sta

tuto

ry re

serv

e*

- -

(325

,845

) 32

5,84

5 -

- -

Div

iden

d pa

id

- -

(4,3

53,0

65)

- -

- (4

,353

,065

)

At 3

1 D

ecem

ber 2

009

54,4

13,3

04

18,7

64,9

32

132,

566,

359

351,

550

1,01

6,67

1 51

0,02

9 20

7,62

2,84

5


Statement of Changes in EquityFor the year ended 31st December 2009 (continuied)

* Special Non-distributable Reserve represents the surplus of loan provision computed as per the Bank of Tanzania regulations paragraph 26 of the Management of Risk Assets Regulations, 2008 issue by the Bank of Tanzania over the impairment of loans and advances as per International Accounting Standard (IAS) No. 39.

** Share Premium represents the surplus of market price over the nominal value of the shares issued during the year, comprising the rights issue and Initial Public o�ering (IPO).

*** Revaluation Reserve represents the surplus realized from revaluation of motor vehicles following the change in Group’s accounting policy regarding motor vehicles whereby from this year, all motor vehicles will be recorded at revalued amounts.

**** Issue of Ordinary Shares: At 31 December 2008, the Bank had 247,333,200 ordinary shares in issue. During the year, there was a bonus issue of 1:1, followed by a share split of 1: 4. These resulted in 1,978,665,600 new shares. The Bank issued share rights at a ratio of 1:10 which increased the number of shares in issue to 2,176,532,160.

***** De�ned Bene�t Reserve: Represents excess of fair value of long service award fund over the fund’s obligations as at year end.


GROUP BANK

2009 2008 2009 2008 Notes Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

OPERATING ACTIVITIES

Cash generated from operations 42(a) 180,283,673 40,017,254 179,275,816 39,926,299

Taxation paid 30 (19,202,171) (19,604,538) (18,959,171) (19,501,374)

Net cash generated from operating activities 161,081,502 20,412,716 160,316,645 20,424,925

INVESTING ACTIVITIES

Acquisition of a subsidiary - - - (12,209)

Purchase of intangible assets 23 (3,383,354) (817,916) (3,041,913) (817,916)

Purchase of property and equipment 24 (14,623,856) (15,652,081) (14,200,440) (15,652,081)

Acquisition of leasehold land (343,606) - (343,606) -

Proceeds on disposal of equipment 8,378 134,530 8,378 134,530

Refurbishment costs 22 (4,726,579) (2,252,151) (4,726,579) (2,252,151)

Net cash used in investing activities (23,069,017) (18,587,618) (22,304,160) (18,599,827)

FINANCING ACTIVITIES

Dividends paid (4,260,360) (4,053,863) (4,260,360) (4,053,863)

Proceeds from issue of ordinary shares 23,711,596 - 23,711,596 -

Net cash generated from/ (used in) �nancing activities 19,451,236 (4,053,863) 19,451,236 (4,053,863)

Net increase/(decrease) in cash and cash equivalents 157,463,721 (2,228,765) 157,463,721 (2,228,765)

Cash and cash equivalents at 1 January 295,635,295 297,864,060 295,635,295 297,864,060

Cash and cash equivalents at 31 December 42(b) 453,099,016 295,635,295 453,099,016 295,635,295

Consolidated and Bank Statementof Cash Flows



1. GENERAL INFORMATION CRDB Bank Plc (“the Bank”) and its subsidiary (together “the Group”) provide corporate and

retail Banking including micro�nance services in Tanzania. The Bank is a public limited company incorporated under the Companies Act 2002 and domiciled in the United Republic of Tanzania. The address of its registered o�ce and principal place of business is O�ce Accommodation Scheme Building, Azikiwe Street, P.O Box 268, Dar es Salaam.

The Bank’s shares have been listed on the Dar es Salaam Stock Exchange.

2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

The following new and revised Standards have been adopted in the current period and have a�ected the disclosures and presentation in these �nancial statements. Details of other Standards and Interpretations adopted in these �nancial statements but that have had no e�ect on the amounts reported are also set out below.

Standards a�ecting presentation and disclosure• IAS 1 (as revised in 2007) – Presentation of Financial Statements: Amendments resulting

from May 2008 Annual Improvements to IFRSs (e�ective annual periods beginning on or after 1 January 2009). IAS 1(2007) has introduced terminology changes (including revised titles for the �nancial statements) and changes in the format and content of the �nancial statements; and

• IFRS 8 Operating Segments – The standard which replaced IAS 14 ‘Segment Reporting’ requires a ‘management approach’ under which segment information is presented on the same basis as that used for internal reporting purposes.

Standards and interpretations adopted with no e�ect on the �nancial statements The following new and revised Standards and Interpretations have also been adopted in

these �nancial statements. Their adoption has not had any signi�cant impact on the amounts reported in these �nancial statements but may a�ect the accounting for future transactions or arrangements.• IFRIC 15, Agreements for the Construction of Real Estate (effective for annual periods

beginning on or after 1 January 2009);• IFRIC 16, Hedges of a Net Investment in a Foreign Operation (effective annual periods

beginning on or after 1 October 2008);• IFRS 1 First-time Adoption of International Financial Reporting Standards (revised May

2008) – Amendment relating to cost of an investment on �rst-time adoption (e�ective for annual periods beginning on or after 1 January 2009);

Notes to the ConsolidatedFinancial Statements



2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (Continued)• IFRS 2, Share-based Payment – Amendment relating to vesting conditions and

cancellations (e�ective for annual periods beginning on or after 1 January 2009);• IFRS 7 Financial Instruments: Disclosures – Amendments enhancing disclosures about

fair value and liquidity risk (Revised March 2009 ) – e�ective for annual periods beginning on or after 1 January 2009;

• IFRS for SMEs – International Financial Reporting Standard for Small and Medium-sized Entities (Original issue 2009) - e�ective immediately on issue;

• IAS 16 Property, Plant and Equipment – Amendments resulting from May 2008 Annual Improvements to IFRSs (e�ective for annual periods beginning on or after 1 January 2009);

• IAS 19, Employee Benefits – Amendments resulting from May 2008 Annual Improvements to IFRSs (e�ective annual periods beginning on or after 1 January 2009);

• IAS 20, Government Grants and Disclosure of Government Assistance – Amendments resulting from May 2008 Annual Improvements to IFRSs (e�ective annual periods beginning on or after 1 January 2009);

• IAS 23, Borrowing Costs, (amendments resulting from May 2008 Annual Improvements to IFRSs and comprehensive revision to prohibit immediate expensing (e�ective for annual periods beginning on or after 1 January 2009);

• IAS 27, Consolidated and Separate Financial Statements: Amendment relating to cost of an investment on �rst-time adoption (revised 2008) and Amendments resulting from May 2008 Annual Improvements to IFRSs – e�ective for annual periods beginning on or after 1 January 2009;

• IAS 28, Investments in Associates – amendments resulting from May 2008 Annual Improvements to IFRSs – e�ective for annual periods beginning on or after 1 January 2009;

• IAS 29, Financial Reporting in Hyperinflationary Economies – amendments resulting from May 2008 Annual Improvements to IFRSs (May 2008) – e�ective annual periods beginning on or after 1 January 2009;

• IAS 31, Interests in Joint Ventures – amendments resulting from May 2008 Annual Improvements to IFRSs – e�ective annual periods beginning on or after 1 January 2009;

• IAS 32, Financial Instruments: Presentation – amendments relating to puttable instruments and obligations arising on liquidation (2008) – e�ective annual periods beginning on or after 1 January 2009;

• IAS 36, Impairment of Assets – Amendments resulting from May 2008 Annual Improvements to IFRSs (e�ective annual periods beginning on or after 1 January 2009;


2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (Continued)• IAS 38, Intangible Assets – Amendments resulting from May 2008 Annual

Improvements to IFRSs (e�ective annual periods beginning on or after 1 January 2009);• IAS 39, Financial Instruments: Recognition and Measurement – Amendments resulting

from May 2008 Annual Improvements to IFRSs (e�ective annual periods beginning on or after 1 January 2009);

• IAS 40, Investment Property – amendments resulting from May 2008 Annual Improvements to IFRSs (May 2008) – e�ective annual periods beginning on or after 1 January 2009; and

• IAS 41, Agriculture – amendments resulting from May 2008 Annual Improvements to IFRSs (May 2008) - e�ective annual periods beginning on or after 1 January 2009

Standards and interpretations issued but not e�ective in the current period• IFRIC 17, Distributions of Non-cash Assets to Owners (effective for accounting periods

beginning on or after 1 July 2009);• IFRIC 18, Transfer of assets to Customers (effective for the accounting periods beginning

on or after 1 July 2009);• IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments (effective for annual

periods beginning on or after 1 July 2010);• IFRS 1, First-time Adoption of International Financial Reporting Standards —

amendments relating to oil and gas assets and determining whether an arrangement contains a lease (revised July 2009) – e�ective for annual periods beginning on or after 1 January 2010;

• IFRS 1, First-time Adoption of International Financial Reporting Standards — Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters (revised January 2010) – e�ective for annual periods beginning on or after 1 July 2010;

• IFRS 2, Share-based Payment — amendments resulting from April 2009 Annual Improvements to IFRSs (April 2009) – e�ective for annual periods beginning on or after 1 July 2009;

• IFRS 2, Share-based Payment — amendments relating to group cash-settled share-based payment transactions (June 2009) – e�ective for annual periods beginning on or after 1 January 2010;

• IFRS 3, Business Combinations – Comprehension revision on applying the acquisition method (e�ective for accounting periods beginning on or after 1 July 2009);

• IFRS 5, Non-current Assets Held for Sale and Discontinued Operations — amendments resulting from May 2008 Annual Improvements to IFRSs (revised May 2008) – e�ective for annual periods beginning on or after 1 July 2009;


2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (Continued)• IFRS 5, Non-current Assets Held for Sale and Discontinued Operations — amendments

resulting from April 2009 Annual Improvements to IFRSs (April 2009) – e�ective for annual periods beginning on or after 1 January 2010;

• IFRS 1, First-time Adoption of International Financial Reporting Standards — Revised and restructured (revised November 2008) – e�ective for annual periods beginning on or after 1 July 2009;

• IFRS 8, Operating Segments — amendments resulting from April 2009 Annual Improvements to IFRSs (April 2009) – e�ective for annual periods beginning on or after 1 January 2010;

• IFRS 9, Financial Instruments — Classification and Measurement (November 2009) – e�ective annual periods beginning on or after 1 January 2013;

• IAS 1, Presentation of Financial Statements — amendments resulting from April 2009 Annual Improvements to IFRSs (April 2009) – e�ective annual periods beginning on or after 1 January 2010; and

• IAS 39, Financial Instruments: Recognition and Measurement: Amendments for eligible hedged items (e�ective for accounting periods beginning on or after 1 July 2009); amendments for embedded derivatives when reclassifying �nancial instruments (e�ective for annual periods ended on or after 30 June 2009)

The directors are currently assessing the impact and expected timing of adoption of these amendments on the Group’s results and �nancial position.

3. PRINCIPAL ACCOUNTING POLICIES Statement of compliance The �nancial statements have been prepared in accordance with International Financial

Reporting Standards.

Basis of preparation The consolidated �nancial statements have been prepared under the historical cost

convention, modi�ed to include the revaluation of certain non-current assets and �nancial instruments.

The preparation of �nancial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Bank’s accounting policies. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised and in any future periods a�ected.


3. PRINCIPAL ACCOUNTING POLICIES (Continued) The areas involving a higher degree of judgment or complexity, or areas where

assumptions and estimates are signi�cant to the consolidated �nancial statements are disclosed in Note 4.

The principal accounting policies adopted are set out below.

Basis of consolidation

(a) Subsidiaries The consolidated �nancial statements incorporate the �nancial statements of the Bank

and its subsidiary (CRDB Micro�nance Services Company Limited) for the year ended 31 December 2009.

Subsidiaries are those companies in which the Bank either directly or indirectly has an interest of more than 50% of the voting rights or otherwise has power to exercise control over the operations of the entities. Subsidiaries are consolidated from the date on which e�ective control is transferred to the group. Consolidated in ceases from the date of disposal or when the Bank e�ectively loses control.

Intra-company balances and any unrealised income and expenses arising from intra-company transactions are eliminated in preparing the consolidated �nancial statements.

The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured as the fair value of the assets given, liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identi�able assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The excess of the cost of acquisition over the fair value of the Group’s share of the identi�able net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the di�erence is recognised directly in the pro�t or loss for the period.

Investment in subsidiaries is accounted for at cost in the �nancial statements of the Bank.


3. PRINCIPAL ACCOUNTING POLICIES (Continued)

(b) Transactions with non-controlling interests The Group applies a policy of treating transactions with non-controlling interests as

transactions with parties external to the Group. Disposals to non-controlling interests result in gains and losses for the group and are recorded in the pro�t or loss for the year. Purchases from non-controlling interests result in goodwill, being the di�erence between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary.

Foreign currency translation

(a) Functional and presentation currency Items included in these �nancial statements are measured using the currency of the

primary economic environment in which the Group operates (‘the functional currency’).

The �nancial statements are presented in Tanzania shillings (Tshs’000), which is the Group’s functional and presentation currency.

(b) Transactions and balances Foreign currency transactions are translated into Tanzania shillings using the exchange

rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Tanzania shillings using the rate of exchange prevailing at that date. The resultant exchange gains and losses are recognized in the income statement.

Financial instruments The Group initially recognizes loans and advances, deposits and debt securities issued on

the date that they are originated. All other �nancial assets and liabilities are initially recognized on the trade date at which the Group becomes a party to the contractual provisions of the instrument.

i. Financial assets The Group classi�es its �nancial assets in the following categories: �nancial assets at fair

value through pro�t or loss; loans and receivables; held-to-maturity investments; and available-for-sale �nancial assets. Management determines the classi�cation of its investments at initial recognition.



(a) Financial assets at fair value though pro�t or loss This category has two sub-categories: �nancial assets held for trading, and those

designated at fair value through pro�t or loss at inception. A �nancial asset is classi�ed as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing in the near term or if it is part of a portfolio of identi�ed �nancial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term pro�t-taking. Derivatives are also categorised as held for trading.

Gains and losses arising from changes in the fair value of derivatives that are managed in conjunction with designated �nancial assets or �nancial liabilities are included in ‘net income from �nancial instruments designated at fair value’.

The Group designates certain �nancial assets upon initial recognition as at fair value through pro�t or loss (fair value option). This designation cannot subsequently be changed. According to IAS 39, the fair value option is only applied when the following conditions are met:• the application of the fair value option reduces or eliminates an accounting

mismatch that would otherwise arise or• the financial assets are part of a portfolio of financial instruments which is risk

managed and reported to senior management on a fair value basis or• the financial assets consists of debt host and an embedded derivatives that must

be separated.

The fair value option is applied to investment funds that are part of a portfolio managed on a fair value basis, and structured instruments that include embedded derivatives. Financial assets for which the fair value option is applied are recognised in the consolidated statement of �nancial position as ‘Financial assets designated at fair value’. Fair value changes relating to �nancial assets designated at fair value through pro�t or loss are recognised in ‘Net gains on �nancial instruments designated at fair value through pro�t or loss’.

(b) Loans and receivables Loans and receivables are non-derivative �nancial assets with �xed or determinable

payments that are not quoted in an active market, other than: (a) those that the entity intends to sell immediately or in the short term, which are classi�ed as held for trading, and those that the entity upon initial recognition designates as at fair value through



pro�t or loss; (b) those that the entity upon initial recognition designates as available for sale; or (c) those for which the holder may not recover substantially all of its initial investments, other than because of credit deterioration.

(c) Held-to-maturity �nancial assets Held-to-maturity investments are non-derivative �nancial assets with �xed or

determinable payments and �xed maturities that the Group’s management has the positive intention and ability to hold to maturity. If the Group were to sell other than an insigni�cant amount of held-to-maturity assets, the entire category would be reclassi�ed as available for sale.

Government securities comprise treasury bills and treasury bonds, which are debt securities issued by the Government of Tanzania. Treasury bills and bonds are classi�ed as held to maturity and are stated at amortised cost.

(d) Available-for-sale �nancial assets Available-for-sale assets are �nancial assets that are not (a) �nancial assets at fair value

through pro�t or loss, (b) loans and receivables, or (c) �nancial assets held to maturity.

Available-for-sale investments are intended to be held for an inde�nite period of time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices.

Regular-way purchases and sales of �nancial assets at fair value through pro�t or loss, held to maturity and available for sale are recognized on trade-date – the date on which the Group commits to purchase or sell the asset.

Financial assets are initially recognized at fair value plus transaction costs for all �nancial assets not carried at fair value through pro�t or loss. Financial assets carried at fair value through pro�t and loss are initially recognized at fair value, and transaction costs are expensed through pro�t or loss for the year.

Financial assets are derecognized when the rights to receive cash �ows from the �nancial assets have expired or where the group has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognized when they are extinguished – that is, when the obligation is discharged, cancelled or expires.

Available-for-sale �nancial assets and �nancial assets at fair value through pro�t or loss are subsequently carried at fair value. Loans and receivables and held-to-maturity investments are carried at amortized cost using the e�ective interest method.



Gains and losses arising from changes in the fair value of the ‘�nancial assets at fair value through pro�t or loss’ category are included in the pro�t or loss in the period in as they arise. Gains and losses arising from changes in the fair value of available-for-sale �nancial assets are recognized directly in equity, until the �nancial asset is derecognized or impaired. At this time, the cumulative gain or loss previously recognized through other comprehensive income is reclassi�ed to pro�t or loss for the year. However, interest calculated using the e�ective interest method and foreign currency gains and losses on monetary assets classi�ed as available for sale are recognized in the pro�t or loss for the year. Dividends on available-for-sale equity instruments are recognized in the pro�t or loss for the year when the entity’s right to receive payment is established.

The fair values of quoted investments in active markets are based on current bid prices. If there is no active market for a �nancial asset, the Group establishes fair value using valuation techniques. These include the use of recent arm’s length transactions, discounted cash �ow analysis, and other valuation techniques commonly used by market participants.

Impairment of �nancial assets

(a) Assets carried at amortised cost The Group assesses at the end of each reporting period whether there is objective

evidence that a �nancial asset or group of �nancial assets is impaired. A �nancial asset or a group of �nancial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash �ows of the �nancial asset or group of �nancial assets that can be reliably estimated.

The criteria that the Group uses to determine that there is objective evidence of an impairment loss include:

• Delinquency in contractual payments of principal or interest;• Cash flow difficulties experienced by the borrower (for example, equity ratio, net

income percentage of sales);• Breach of loan covenants or conditions; • Initiation of bankruptcy proceedings;• Deterioration of the borrower’s competitive position; and• Deterioration in the value of collateral.



The estimated period between a loss occurring and its identi�cation is determined by management for each identi�ed portfolio. In general, the periods used vary between three months and 12 months; in exceptional cases, longer periods are warranted.

The Group �rst assesses whether objective evidence of impairment exists individually for �nancial assets that are individually signi�cant, and individually or collectively for �nancial assets that are not individually signi�cant.

If the Group determines that no objective evidence of impairment exists for an individually assessed �nancial asset, whether signi�cant or not, it includes the asset in a group of �nancial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment.

The amount of the loss is measured as the di�erence between the asset’s carrying amount and the present value of estimated future cash �ows (excluding future credit losses that have not been incurred) discounted at the �nancial asset’s original e�ective interest rate. The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognized in the income statement. If a loan or held-to-maturity investment has a variable interest rate, the discount rate for measuring any impairment loss is the current e�ective interest rate determined under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price.

The calculation of the present value of the estimated future cash �ows of a collateralized �nancial asset re�ects the cash �ows that may result from foreclosure less costs for obtaining and selling the collateral, whether or not foreclosure is probable.

For the purposes of a collective evaluation of impairment, �nancial assets are grouped on the basis of similar credit risk characteristics (i.e, on the basis of the Group’s grading process that considers asset type, industry, geographical location, collateral type, past-due status and other relevant factors).Those characteristics are relevant to the estimation of future cash �ows for groups of such assets by being indicative of the customer’s ability to pay all amounts due according to the contractual terms of the assets being evaluated.



Future cash �ows in a group of �nancial assets that are collectively evaluated for impairment are estimated on the basis of the contractual cash �ows of the assets in the group and historical loss experience for assets with credit risk characteristics similar to those in the group. Historical loss experience is adjusted on the basis of current observable data to re�ect the e�ects of current conditions that did not a�ect the period on which the historical loss experience is based and to remove the e�ects of conditions in the historical period that do not currently exist.

Estimates of changes in future cash �ows for groups of assets should re�ect and be directionally consistent with changes in related observable data from period to period (for example, changes in unemployment rates, property prices, payment status, or other factors indicative of changes in the probability of losses in the group and their magnitude). The methodology and assumptions used for estimating future cash �ows are reviewed regularly by the Group to reduce any di�erences between loss estimates and actual loss experience.

When a loan is uncollectible, it is written o� against the related provision for loan impairment. Such loans are written o� after all the necessary procedures have been completed and the amount of loss has been determined.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (such as an improvement in the customer’s credit rating), the previously recognised impairment loss is reversed by adjusting the allowance account. The amount of the reversal is recognised in the pro�t or loss in impairment charge for credit losses.

(b) Assets classi�ed as available for sale In the case of equity investments classi�ed as available for sale, a signi�cant or

prolonged decline in the fair value of the security below its cost is considered in determining whether the assets are impaired. If any such evidence exists for available-for-sale �nancial assets, the cumulative loss measured as the di�erence between the acquisition cost and the current fair value, less any impairment loss on that �nancial asset previously recognized in pro�t or loss is removed from equity and reclassi�ed to pro�t or loss for the year.

Impairment losses recognized in the pro�t of loss for the year on equity instruments are not reversed through the income statement. If, in a subsequent period, the fair value of a debt instrument classi�ed as available for sale increases and the increase can be



objectively related to an event occurring after the impairment loss was recognized in pro�t or loss, the impairment loss is reversed through the pro�t or loss for the year.

(c) Renegotiated loans Loans that are either subject to collective impairment assessment or individually

signi�cant and whose terms have been renegotiated are no longer considered to be past due but are treated as new loans. In subsequent years, the asset is considered to be past due and disclosed only if renegotiated.

ii. Financial liabilities and equity instruments

(a) Classi�cation as debt or equity Debt and equity instruments are classi�ed as either �nancial liabilities or as equity in

accordance with the substance of the contractual arrangement.

(b) Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of

an entity after deducting all of its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.

(c) Financial guarantee contracts liabilities Financial guarantee contract liabilities are measured initially at their fair values and are

subsequently measured at the higher of the amount of the obligation under the contract, as determined in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets; and the amount initially recognised less, where appropriate, cumulative amortisation recognised in accordance with the revenue recognition policies.

Financial liabilities Financial liabilities are classi�ed as either �nancial liabilities ‘at fair value through pro�t

and loss’ or ‘other �nancial liabilities’.

Other liabilities, borrowing and deposits are initially measured at fair value net of transaction costs and subsequently measured at amortized cost using the e�ective interest method, with interest expense recognized on e�ective yield basis.

The e�ective interest method is a method of calculating the amortized cost of a �nancial asset or a �nancial liability and of allocating the interest income or interest expense over the relevant period. The e�ective interest rate is the rate that exactly


3. PRINCIPAL ACCOUNTING POLICIES (Continued) discounts estimated future cash payments or receipts through the expected life of the �nancial instrument or, when appropriate, a shorter period to the net carrying amount of the �nancial asset or �nancial liability. When calculating the e�ective interest rate, the Group estimates cash �ows considering all contractual terms of the �nancial instrument (for example, prepayment options) but does not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the e�ective interest rate, transaction costs and all other premiums or discounts.

O�setting �nancial instruments Financial assets and liabilities are o�set and the net amount reported in the statement of

�nancial position when there is a legally enforceable right to o�set the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

Interest income and expense Interest income and expense for all interest bearing �nancial instruments are recognized in

the pro�t or loss for the year on accrual basis using the e�ective interest method. The e�ective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the �nancial instruments (or, where appropriate, a shorter period) to the carrying amount of the �nancial instruments. The e�ective interest rate is established on initial recognition of the �nancial asset and liability and is not revised subsequently.

The calculation of the e�ective interest rate includes all fees and points paid or received transaction costs, and discounts or premiums that are an integral part of the e�ective interest rate. Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a �nancial asset or liability.

Once a �nancial asset or a group of similar �nancial assets has been written down as a result of an impairment loss, interest income is recognized using the rate of interest that was used to discount the future cash �ows for purposes of measuring the allowance for impairment.

Fee and commission income Fees and commissions are generally recognized on an accrual basis when the service has

been provided. Loan commitment fees for loans that are likely to be drawn down are deferred (together with related direct costs) and recognized as an adjustment to the e�ective interest rate on the loan. Loan syndication fees are recognized as revenue when



the syndication has been completed and the Group has retained no part of the loan package for itself or has retained a part at the same e�ective interest rate as the other participants. Commission and fees arising from negotiating or participating in the negotiation of, a transaction for a third party are recognized on completion of the underlying transaction.

Dividend income Dividends are recognized in the pro�t or loss for the year when the entity’s right to receive

payment is established.

Sale and repurchase agreements Securities sold subject to repurchase agreements (‘repos’) are reclassi�ed in the

consolidated �nancial statements as pledged assets when the transferee has the right by contract or custom to sell or repledge the collateral; the counterparty liability is included in amounts due to other Banks, deposits from Banks, other deposits or deposits due to customers, as appropriate. Securities purchased under agreements to resell (‘reverse repos’) are recorded as loans and advances to other Banks or customers, as appropriate. The di�erence between sale and repurchase price is treated as interest and accrued over the life of the agreements using the e�ective interest method. Securities lent to counterparties are also retained in the consolidated �nancial statements.

Income tax Income tax expense represents the sum of the current taxation and the deferred taxation.

Current taxation is provided on the basis of the results for the year, as shown in the �nancial statements, adjusted in accordance with tax legislation.

Deferred tax is provided, using the liability method, for all temporary di�erences arising between the tax bases of assets and liabilities and their carrying amounts in the �nancial statements. Currently enacted tax rates are used to determine deferred tax.

A deferred tax asset is recognized to the extent that it is probable that future taxable pro�ts will be available against which the unused tax credits can be utilized. Deferred tax assets are reviewed at the end of each reporting period and are reduced to the extent that it is no longer probable that the related tax bene�t will be realized.


3. PRINCIPAL ACCOUNTING POLICIES (Continued) Property and equipment Following the change in accounting policy by the Group, motor vehicles are stated in the

statement of �nancial position at revalued amounts, being the fair value at the date or revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The valuation was determined with reference to the market value of the motor vehicles.

Any revaluation increase arising on the revaluation of such motor vehicles is recognized in other comprehensive income, except to the extent that it reverses a revaluation decrease for the same asset previously recognized in the pro�t or loss, in which case the increase is credited to pro�t or loss to the extent of the decrease previously expensed. A decrease in the carrying amount arising on the revaluation of such motor vehicles is recognized in the pro�t or loss to the exceeds the balance, if any, held in revaluation reserve relating to a previous revaluation of that asset.

This change in policy has been adopted prospectively in line with IAS 16 requirements

Land and buildings comprise mainly branches and o�ces. All property and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or are recognized as a separate asset, as appropriate, only when it is probable that future economic bene�ts associated with the item will �ow to the Group and the cost of the item can be measured reliably.

All other repairs and maintenance are charged to pro�t or loss for the year operating expenses during the �nancial period in which they are incurred. Depreciation of other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:

Bank buildings 20 yrs Computer equipment 5 yrs Motor vehicles 4 yrs O�ce equipment 5 yrs Furniture and �ttings 5 yrs Smart card equipments 8 yrs Mobile branch 4 yrs



The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to sell and value in use. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are dealt with through pro�t or loss for the year.

Revaluation reserve Assets classi�ed as held for sale, but extend the period to complete the sale beyond one

year are to be revalued and surplus is recognized through other comprehensive income and accumulate in revaluation surplus reserve in the statement of changes in equity.

Intangible assets Acquired computer software and related licenses are stated at cost less accumulated

amortization. Subsequent expenditure on software assets is capitalized only when it increases the future economic bene�ts embodied in the speci�c asset to which it relates. All other expenditure is expensed as incurred. Where software is not an integral part of the related hardware it is recognised as an intangible asset.

Amortization is recognized in pro�t or loss on a straight-line basis over the estimated useful life of the software, from the date that it is available for use. The estimate useful life of software is three to �ve years.

Impairment of tangible and intangible assets At the end of each reporting period, the Group reviews the carrying amount of its tangible

and intangible assets to determine whether there is any indication that these assets have su�ered an impairment loss.

If objective evidence on impairment losses exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in the pro�t or loss.

In determining the recoverable amount, the Group considers the higher of the fair value of the asset less costs to sell, and value in use. In estimating value in use, the Group is cognisant of the estimated future cash �ow discounted to the present value using a pre-tax discount rate that is re�ective of the current market assessment of time value of money and the risks speci�c to the asset itself.



Intangible assets with inde�nite useful life and intangible assets not yet available for use are tested for impairment annually, and when there is indication that the asset may be impaired.

Where impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized.

Statutory reserve IAS 39 requires the Group to recognise an impairment loss when there is objective evidence

that loans and receivables are impaired. However, Bank of Tanzania prudential guidelines require the Bank to set aside amounts for impairment losses on loans and advances in addition to those losses that have been recognised under IAS 39. Any such amounts set aside represent appropriations of retained earnings and not expenses in determining pro�t or loss for the year. These amounts are dealt with in the statutory reserve.

Retirement bene�ts obligations The Group’s contributions in respect of retirement bene�t costs are charged to the pro�t or

loss in the year to which they relate. The Group makes contributions to National Social Security Fund and Parastatal Pension Fund, statutory de�ned contribution pension schemes. The Group’s obligations under the schemes are limited to speci�c contributions legislated from time to time and are charged to the pro�t or loss for the year.

The Group operates a de�ned bene�t incentive scheme through an entity speci�cally established to manage the Fund namely CRDB Bank Group Endowment Scheme Trust. The scheme is generally funded through contributions by the Group. Actuarial valuation is conducted periodically and any gains or losses are dealt with through pro�t or loss.

This plan entitles all employees leaving the employment of the Group after working with it for at least ten years to certain bene�ts which are based on pre-determined formulae.

The liability recognised in the consolidated statement of �nancial position in respect of the de�ned bene�t incentive plan is the present value of the de�ned bene�t obligation at the end of the reporting period less the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses and past service costs. The de�ned bene�t obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the de�ned bene�t obligation is determined by discounting the estimated future cash out�ows using reasonable interest rates.



The amounts recognised in pro�t or loss for the year is as shown on Note 40.

Leasehold land Payments to acquire leasehold interest in land are treated as prepaid operating lease

rentals and amortized on a straight line basis over the period of the lease.

Amortization of refurbishment costs Leased premises refurbishment represents costs incurred by the Group in refurbishment of

leased bank premises. The rate of amortization was changed during the year from three to �ve years from the year the costs are incurred.

Grants Grants related to assets are treated as deferred income and released to the pro�t or loss

over the expected useful lives of the assets concerned.

Grants towards improvement of Group’s processes are recognized to pro�t or loss over the periods necessary to match them with the related costs.

Cash and cash equivalents For the purpose of statement of cash �ow, cash and cash equivalents comprise cash, short

term liquid investments which are readily convertible into known amounts of cash and which are within three months maturity from the date of acquisition, balances with Bank of Tanzania (excluding the Statutory Minimum Reserve) and balances with other bank’s with maturity of less than three months, less advances from other bank’s repayable within three months from the date of the advance.

Earnings per share The Group presents basic and diluted earnings per share (EPS) in the consolidated �nancial

statements. Basic EPS is calculated by dividing the pro�t or loss attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the pro�t or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the e�ects of all dilutive potential ordinary shares.

Dividends Dividends are charged to equity in the period in which they are declared. Proposed

dividends are not accrued until rati�ed at the Annual General Meeting. Payment of dividends is subjected to withholding tax at the rate of 5% and are presented in the notes to the �nancial statements.



Provisions for liabilities and charges Entitlements to annual leave are recognized when they accrue to employees. Provision is

made for the estimated liability in respect of annual leave accrued at the end of the reporting period end.

Contingent liabilities Letters of credits, acceptances and guarantees are generally written by the group to

support performance of the customer to third parties. The group will only be required to meet these obligations in the event of the customer’s default. These obligations are accounted for as o� balance sheet transactions and disclosed as contingent liabilities.

Comparatives Where necessary, comparative �gures have been adjusted to conform with changes in

presentation in the current year.

4. CRITICAL ACCOUNTING ESTIMATES AND KEY SOURCES OF UNCERTAINITIES

The group makes estimates and assumptions that a�ect the reported amounts of assets and liabilities within the next �nancial year. Estimates and judgments are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Impairment losses on loan and advances The group reviews its loan portfolios to assess impairment regularly. In determining

whether an impairment loss should be recorded in the pro�t or loss, the group makes judgments as to whether there is any observable data indicating that there is a measurable decrease in the estimated future cash �ows from a portfolio of loans, before a decrease can be identi�ed with an individual loan in that portfolio. This evidence may include observable data indicating that there has been an adverse change in the payment status of borrowers in a group, or national or local economic conditions that correlate with defaults on assets in the Group. Management uses estimates based on historical loss experience for assets with credit risk characteristics and objective evidence of impairment similar to those in the portfolio when scheduling its future cash �ows.

The methodology and assumptions used for estimating both the amount and timing of future cash �ows are reviewed regularly to reduce any di�erences between loss estimates and actual loss experience.


4. CRITICAL ACCOUNTING ESTIMATES AND KEY SOURCES OF UNCERTAINITIES (Continued)

Held to maturity investments The group follows the guidance of IAS 39 in classifying non-derivative �nancial assets with

�xed or determinable payments and �xed maturity as held-to-maturity. This classi�cation requires signi�cant judgment. In making this judgment, the group evaluates its intention and ability to hold such investment to maturity. If the group fails to keep these investments to maturity other than for the speci�c circumstances – for example, selling an insigni�cant amount close to maturity – it will be required to reclassify the entire class as available for sale. The investments would therefore be measured at fair value not amortized cost.

Property, plant and equipment Critical estimates are made by the Directors in determining the useful lives of property,

plant and equipment as well as their residual values.

5. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Group’s activities expose it to a variety of �nancial risks and those activities involve the

analysis, evaluation, acceptance and management of some degree of risk or combination of risks. Taking risk is core to the �nancial business, and the operational risks are an inevitable consequence of being in business. The Group’s aim is therefore to achieve an appropriate balance between risk and return and minimise potential adverse e�ects on the Group’s �nancial performance. The Group’s risk management policies are designed to identify and analyse these risks, to set appropriate risk limits and controls, and to monitor the risks and adherence to limits by means of reliable and up-to-date information systems. The group regularly reviews its risk management policies and systems to re�ect changes in markets, products and emerging best practice.

The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. As part of it’s governance structure, the Board of Directors has embedded a comprehensive risk management framework for measuring, monitoring, controlling and mitigation of the Group’s risks. The policies are integrated in the overall management information systems of the group and supplemented by a management reporting structure.

Risk management policies and systems are reviewed regularly to re�ect changes in market conditions, products and services o�ered, and emerging best practice. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment, in which all employees / stakeholders understand their roles and obligations.


5. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)

The Board’s Credit Committee, Governance and Risk Management Committee, and Audit Committee are responsible for monitoring compliance with the Group’s risk management policies and procedures, and review of the adequacy of risk management framework in relation to the risks faced by the group. These committees are assisted in these functions by various management committees which undertake both regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to the Board.

The most important type of risks are: • Credit risk • Liquidity risk • Market risk - Interest rate risk - Foreign exchange risk

The notes below provide detailed information on each of the above risks and the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of capital.

Credit risk Credit risk refers to the risk that a counter party will default on its contractual obligations

resulting in �nancial loss to the group. It arises principally from lending, trade �nance and treasury activities. The amounts presented in the statements of �nancial position are net of impairment for doubtful debts, estimated by the Group’s management based on prior experience and their assessment of the current economic environment.

i. Management of credit risk The Board of Directors has delegated responsibility for the management of credit risk to its

Credit Committee which is responsible for oversight of the Group’s credit risk, including:• Formulating credit policies, covering risk acceptances criteria in target market, collateral

requirements, credit appraisal, risk grading and reporting, documentary and legal procedures, and compliance with regulatory and statutory requirements.

• Establishing the authorization structure for the approval of credit facilities. • Reviewing and assessing credit risk on all exposures in excess of approval limits of the

management prior to facilities being committed to customers. • Limiting concentrations of exposure to counterparties and industries (for loans and

advances).



Credit risk (Continued) i. Management of credit risk (Continued)

• Developing and maintaining the group’s risk grading system in order to categorise exposures according to the degree of risk of �nancial loss faced and to focus management on the attendant risks. The risk grading system is used in determining where impairment provisions may be required against speci�c credit exposures. The current risk grading framework consists of several grades re�ecting varying degrees of risk of default and other credit risk mitigation. The responsibility for setting risk grades lies with the Committee and risk grades are subject to regular reviews by the Board.

• Reviewing reports on compliance with agreed exposure limits, including those for selected industries and product types.

Day to day management of the group’s credit risk is vested to Director of Credit who reports

to the Managing Director.

Regular audits of the credit processes and management are undertaken by Internal Audit.

ii. Maximum exposure to credit risk before collateral held

2009 2008

Tshs’000 % Tshs’000 %

Credit Exposures

On – statement of �nancial position

Deposits and balances due from Grouping 252,605,127 16 140,455,690 10

institutions

Government securities – held to maturity 252,976,601 16 205,719,650 16

Loans and advances to customers 982,173,461 62 848,195,952 66

Items in the course of collection from other banks 16,686,645 1 38,419,068 3

1,504,441,834 95 1,232,790,360 95

O�-statement of �nancial position Letters of credit 104,609,957 4 42,519,886 3

Guarantees 22,567,345 1 20,391,317 2

127,177,302 5 62,911,203 5

1,631,619,136 100 1,295,701,563 100

The above represents the worst case scenario of credit exposure for both years, without

taking account of any collateral held or other credit enhancements attached.



Credit Risk (Continued iii. Classi�cation of loans and advances

2009 2008

Neither past due nor impaired 861,486,988 788,362,425

Past due but not impaired 60,074,590 21,886,419

Impaired 60,611,883 37,947,108

Gross 982,173,461 848,195,952

Less: allowance for impairment (26,846,444) (9,559,436)

Interest in suspense (5,821,981) (1,833,296)

949,505,036 836,803,220

Apart from the loans and advances to customers, all other credit exposures are neither past due nor impaired.

(a) Loans and advances that are neither past due nor impaired The Group classi�es loans and advances under this category for those exposures that

are up to date and in line with contractual agreements. Such loans would have demonstrated �nancial conditions, risk factors and capacity to repay that are acceptable. These exposures will normally be maintained largely within approved product programs and with no signs of impairment or distress. These exposures are categorized as normal accounts in line with the Bank of Tanzania (BOT) regulations.

(b) Past due but not impaired This category includes exposures that are over 30 days (31 - 90 days) past due, where

losses have been incurred but have not been identi�ed.

(c) Impaired loans and advances Impaired loans are loans for which the Group determines that it is probable that it will

be unable to collect all principal and interest due according to the contractual terms of the loan agreement(s). These accounts under BOT guidelines are termed as non-performing loans.

iv. Allowances for impairment The Group establishes an allowance for impairment losses that represents its estimate of

incurred losses in its loan portfolio. These allowances are a speci�c loss component that relates to individual exposures and a collective loan loss allowance established for Groups of homogeneous assets in respect of losses that have been incurred but have not been identi�ed on loans subject to individual assessment for impairment.



Write-o� policy The Group writes o� loans and advances net of any related allowances for impairment

losses, when the Board’s Credit Committee determines that the loans and advances are uncollectible and securities unrealizable. This determination is reached after considering information such as the occurrence of signi�cant changes in the borrower or issuer’s �nancial position such that the borrower or issuer can no longer pay the obligation, or that proceeds from sale of collateral will not be su�cient to pay back the entire exposure and after exhausting all other means including litigation. For smaller balance standardized loans, charge o� decisions are generally based on a product speci�c past due status.

Collateral generally is not held over deposits and balance due from banks and items in the course of collection from other banks, except when securities are held as part of reverse repurchase and securities borrowing activity.

vi. Collateral held The Group holds collateral against loans and advances to customers in the form of deposit

under lien, mortgage interests over property, registered securities over assets, and guarantees. Estimates of fair value are based on the value of collateral assessed at the time of borrowing, and refreshed after every three years. Security structures and legal covenants are also subjected to regular review to ensure they continue to ful�ll their intended purpose.

vii. Settlement risk The Group’s activities may give rise to risk at the time of settlement of transactions and

trades. Settlement risk is the risk of loss due to the failure of counter-party to honor its obligations to deliver cash, securities or other assets as contractually agreed. For certain types of transactions the group mitigates this risk by pre-arranging facilities with the customer. Settlement limits form part of the credit approval/limit monitoring process.

viii . Concentrations of risk The Group monitors concentration of risk by economic sector in line with set limits per

sector. An analysis of concentrations within the loan and advances to customers, and o� balance sheet items are provided in note 45.



Liquidity risk Liquidity risk is the risk that the Group will encounter di�culty in meeting obligations from

�nancial liabilities. Assets and Liabilities Committee (ALCO), a management committee is tasked with the responsibility of ensuring that all foreseeable funding commitments and deposits withdrawals can be met when due, and that the group will not encounter di�culty in meeting obligations from its �nancial liabilities as they occur. ALCO relies substantially on the group’s Treasury Department to coordinate and ensure discipline across the group, certify su�cient liquidity under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the group’s reputation.

i. Liquidity and funding management The Group’s liquidity and funding policies require the following:

• The Group enters into lending contracts subject to availability of funds.• Projecting cash flows by major currency and considering the level of liquid assets

necessary in relation thereto.• Monitoring balance sheet liquidity ratios against internal and regulatory

requirements,• Maintaining an array of diverse range of funding sources with back –up facilities, • Monitoring depositor concentration in order to avoid undue reliance on large

individual depositors and ensure a satisfactory funding mix.• Investment in short term liquid instruments, which can easily be sold in the market

when the need arises. • Investments in property and equipment are properly budgeted and subjected to

prudential limits to minimize the Group’s exposure.• Maintaining liquidity contingency plans. These plans must identify early indicators

of stress conditions and describe actions to be taken in the event of di�culties arising from systemic or other crises while minimizing adverse long-term implications.

ii. Source of funding The Group major source of funding is from customer deposits. To this end, the group

maintains a diversi�ed and stable funding base comprising current/demand, savings and time deposits. The group borrows from the interbank market through transactions with other Banks for short term liquidity requirements.



iii. Exposure to liquidity risk The key measure used by the Group for managing liquidity risk is the ratio of liquid

assets to demand liabilities. For this purpose liquid asset considered are cash and interbank deposits, investment in securities maturing within one year, clearing and Statutory Minimum Reserve (SMR) deposits. The Bank of Tanzania (BoT) requires that the Group maintains an SMR ratio of 10% of customers’ total deposits and borrowings from the general public in form of 50% of vault cash and SMR account held at BOT on daily basis. The Group’s maturing liabilities comprises all deposits, liabilities and o� –balance sheet items with maturity period of less than one year. The Group has a limit of loan to total deposit of 70% and liquidity trigger of 20% of top 10 deposits to total deposits and 50% of core deposit to total deposits.

The Group’s exposure to liquidity risk at the end of the reporting period is summarized in note 47.

Market risk The objective of market risk management process is to manage and control market risk

exposures in order to optimise return on investments while maintaining a market pro�le as a provider of financial products and services. Market risk is the risk that movement in market factors, including interest rates and foreign currency exchange rates, will reduce income or value of portfolio.

Overall responsibility for management of market risk rests with ALCO. Market Risk Management Policies are in place to guide management of this risk and are subject to review and approval by the Board annually.

Market risk has been subdivided into interest rate risk and foreign exchange risk.

i. Interest rate risk The Group is exposed to the risk that the value of a financial instrument will fluctuate

due to changes in market interest rates. The maturities of asset and liabilities and the ability to replace at an acceptable cost as they mature are important factors in assessing the group’s exposure to changes in interest rates.

In addition to maintaining an appropriate mix between fixed and floating rates deposit base, interest rates on advances to customers are either pegged to the Bank’s base lending rate or Treasury bill rate. The base rate is adjusted from time to time to reflect the cost of deposits.



Interest rates on customer deposits are negotiated between the bank and the customer with the bank retaining the discretion to adjust the rates in line with changes in market trends. The interest rates, therefore, fluctuate depending on the movement in the market interest rates. The group also invests in treasury bills and bonds. The Group’s exposure to interest rate risk at end of the reporting period is summarized in note 48.

The Group has set a trigger on earnings at risk to net interest income at di�erent maturity bands based on assumptions developed from the past deposit trends and monitoring is done on monthly basis by ALCO.

ii. Foreign exchange risk The Group is exposed to the risk on earnings and capital arising from adverse

movement of foreign exchange rates. The Group participates in the foreign currency market as a market maker and a market user. The Board of Directors through Governance and Risk Management Committee sets limits on the level of exposure by currency and in total for both overnight and intra-day positions. Treasury department is responsible for management of foreign exchange risk including trading within limits and monitoring the exchange rates. The Group’s exposure to foreign currency exchange rate risk at the end of the reporting period is summarized in note 49.

The Group carries out tests to determine exposure to market risk. As at 31 December 2009 stress test on interest rate risk indicated an exposure of Tshs 4.5 billion which is 4% of the Bank’s Core Capital while stress test on foreign exchange risk indicated an exposure of Tshs 813 million which is 0.7% of the Bank’s core Capital. The Group also participated in the capital market by buying /selling shares for trading purposes. However at the end of the year 2009, the Group had no exposure to equity investments and therefore no stress test was carried out. Generally, stress test results indicate that shocks will not lead to capital impairment. The Group has embarked on preparation for implementation of appropriate systems for measurement of market risk using more sophisticated models such as Value at Risk.

CAPITAL MANAGEMENT The Group’s objectives when managing capital, which is a broader concept than the

‘equity’ on the face of statements of �nancial position, are:



• To comply with the capital requirements as set out under the Banking and Financial Institutions Act, 2006 which is monitored by the Bank of Tanzania, the regulator of the banking sector in Tanzania. The Act requires that:

(a) Every bank shall commence operations with and maintain at all times a minimum of core capital of not less than �ve billion Tanzania shillings or such higher amount as the Group may prescribe by order published in the Gazette;

(b) Every bank shall at all times maintain core capital of not less than 10% of its total risk-weighted assets and o� balance sheet exposure; and

(c) Every bank shall at all times maintain total capital of not less than 12% of its total risk weighted assets and o� balance sheet exposure.

• To safeguard the Group’s ability to continue as a going concern so that it can continue

to provide returns to shareholders and bene�ts to other stakeholders; and• To maintain a strong capital base to support the development of the group’s business.

Capital adequacy and regulatory capital are monitored daily by the Group’s management employing techniques based on the guidelines developed by the Basel Committee as implemented by the Bank of Tanzania for supervisory purposes. The required information is �led with the Bank of Tanzania on a monthly basis.

The Bank’s regulatory capital falls into two tiers:

(a) Tier 1 capital: Share capital, retained earnings and reserves created by appropriations of retained earnings.

(b) Tier 2 capital: Qualifying subordinated loan capital

The risk-weighted assets are measured by means of a hierarchy of four risk weights classified according to the nature of assets and reflecting an estimate of credit, market and other risks associated with each asset and counterparty, taking into account any eligible collateral or guarantees. A similar treatment is adopted for o�-balance sheet exposure, with some adjustments to reflect the more contingent nature of the potential losses.

The composition and the ratios of the Bank’s regulatory capital and the details of the risk weighted assets for the year ended 31st December 2009 are summarized in note 41. During the years ended 31st December 2008 and 31st December 2009, the Bank complied with all capital requirements to which they were supposed to.



The increase of the regulatory capital in the year of 2009 is mainly due to the contribution of the current-year profit. The increase in risk weighted assets reflects the expansion of business in general.

6. SEGMENTAL REPORTING The following segment information has been prepared in accordance with the

“management approach” which requires presentation of segments on the basis of the internal reports about components of the entity which are regularly reviewed by the Chief Operating Decision – Maker in order to allocate resources to a segment in order to assess its performance.

Reportable operating The following business segments represent the group’s organization structure as reflected

in the internal management reporting system. For management purposes, the Group is divided into the following three segments:

a) Corporate banking Includes services and products to corporate and high net worth individuals including

deposits, letters of credit letters of guarantee, lending and other products and dealing with �nancial institutions.

b) Retail banking Includes services and products to individuals including deposits and lending.

c) Treasury Includes treasury services, investment management services and asset management

activities related to dealing managing and custody of securities. This segment also includes all other cost centers and pro�t centers in the head o�ce in areas of technology services and support, currency exchange.


6. SEGMENTAL REPORTING (Continued)

The following table represents income and pro�t and loss and certain assets and liability information regarding the Bank’s reportable segments for the year ended 31st December 2009:

Corporate Retail Banking

Banking & MFSC Treasury Total

Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

External operating income

Interest income 69,466,623 47,746,015 28,431,787 145,644,425

Interest expenses (23,929,686) (11,517,272) (229,530) (35,676,488)

Internal net interest income/(expenses) 7,196,034 7,613,143 (14,809,177) -


Fees and commission income 15,383,454 24,141,430 - 39,524,884

Fees and commission expenses (174,651) (239,351) - (414,002)

Net fees and commission income 15,208,803 23,902,079 13,393,081 39,110,882

Net foreign exchange income 8,854,953 2,577,938 3,810,964 15,243,855

Other operating income 444,204 669,057 - 1,113,262

Total operating income 77,240,931 70,990,960 17,204,045 165,435,936

General and administration expenses (21,809,941) (21,829,850) (1,644,541) (45,284,332)

Staff costs (19,330,062) (19,420,027) (1,659,326) (40,409,415)

Impairment losses (14,375,592) (3,445,062) - (17,820,654)

Net operating income 21,725,335 26,296,021 13,900,178 61,921,535

Results

Segment results

Profit before income tax 61,921,535

Income tax expenses (16,096,899)

Pro�t for the year 45,824,636

Assets and Liability

Segment assets (641,713,096) (307,791,939) (821,989,632) (1,771,494,667)

Unallocated assets - - - (83,372,338)

Total assets (1,854,867,005)

Segment liabilities 963,412,218 661,778,898 - 1,625,191,116

Unallocated liabilities - - - 21,901,750

Total liabilities 1,647,092,866


6. SEGMENTAL REPORTING (Continued)

The following table represents income and pro�t and loss and certain assets and liability information regarding the Group’s business segments for the year ended 31st December 2008: Corporate Retail Banking

Banking & MFSC Treasury Total

Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

External operating income

Interest income 50,752,981 39,040,743 22,439,284 112,233,009

Interest expenses (10,848,202) (9,446,750) (503,753) (20,798,706)

Internal net interest

income/(expenses) 647,609 10,085,793 (10,733,402) -


Fees and commission income 11,453,545 19,311,651 - 30,765,196

Fees and commission expenses (195,654) (345,342) - (540,996)

Net fees and commission income 11,257,890 18,966,310 - 30,224,200

Net foreign exchange income 5,356,901 4,423,601 3,260,167 13,040,670

Other operating income 34,350 1,094,972 - 1,129,321

Total Operating income 57,201,529 64,164,669 14,462,296 135,828,494

General and administration

expenses (15,336,406) (20,243,883) (1,317,388) (36,897,677)

Staff costs (14,716,641) (17,938,078) (1,576,145) (34,230,864)

Impairment losses (3,952,895) (742,189) - (4,695,085)

Net operating income 23,195,586 25,240,519 13,144,908 60,004,868

Results

Segment results

Profit before income tax 60,004,868

Income tax expenses (19,495,967)

Pro�t for the year 40,508,901

Assets and Liability

Segment assets (557,066,203) (279,737,018) (534,731,390) (1,371,534,611)

Unallocated assets - - - (78,265,817)

Total assets (1,449,800,428)

Segment liabilities 341,878,457 931,713,161 3,351,419 1,276,943,037

Unallocated liabilities - - - 31,924,756

Total liabilities 1,308,867,793


7. INTEREST INCOME GROUP BANK

2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Term loans – loans and receivables 78,967,688 61,390,122 76,641,966 59,443,683

Overdrafts – loans and receivables 38,165,620 27,828,082 38,165,620 27,828,082

Nostro accounts– loans and receivables 79,330 575,520 79,330 575,520

Placements – held to maturity 3,148,265 4,467,064 3,148,265 4,467,064

Treasury bills – held to maturity 18,360,246 10,680,388 18,360,246 10,680,388

Corporate bonds – available for sale 103,508 703,611 103,508 703,611

Treasury bonds - held to maturity 3,749,078 3,509,119 3,749,078 3,509,119

Government bonds – held to maturity 3,070,690 3,079,103 3,070,690 3,079,103

145,644,425 112,223,009 143,318,703 110,286,570

8. INTEREST EXPENSE GROUP BANK


Demand deposits 1,337,528 1,025,698 1,586,532 1,025,698

Saving deposits 5,682,607 5,315,807 5,682,607 5,315,807

Fixed deposits 28,426,823 13,953,447 28,426,823 13,953,447

Loans and other facilities 229,530 503,754 229,530 551,549

35,676,488 20,798,706 35,925,492 20,846,501

9. FEES AND COMMISSION INCOME GROUP BANK


Commission income 7,228,770 8,212,423 7,228,770 8,212,423

Fees and other charges 32,296,114 22,552,773 31,837,074 22,421,796

39,524,884 30,765,196 39,065,844 30,634,219


10. NET FOREIGN EXCHANGENet foreign exchange income includes gains and losses from spot and forward contracts and translated foreign currency assets and liabilities.

GROUP BANK


Exchange gain – trading 16,099,110 14,519,264 16,099,110 14,519,264

Exchange loss – revaluation (855,255) (1,478,594) (855,255) (1,478,594)

15,243,855 13,040,670 15,243,855 13,040,670

11. OTHER OPERATING INCOME GROUP BANK


Rental income 122,476 66,442 122,476 66,442

FDCF grant income (note 32) 60,294 132,074 60,294 132,074

DANIDA grant income (note 33) - 129,215 - 129,215

RFSP grant income (note 35) 57,750 57,750 - -

FSDT grant income (note 34) 867,063 470,743 - -

CRDB grant (note 36) 5,432 244,560 - -

Gain on disposal of property and equipment 247 28,537 247 28,537

1,113,262 1,129,321 183,017 356,268

12. GENERAL AND ADMINISTRATIVE EXPENSES GROUP BANK


Directors’ fees 236,183 196,292 219,412 181,046

Auditors’ remuneration 257,489 201,888 236,097 188,438

Depreciation of tangible assets and 6,506,074 4,674,193 6,235,234 4,513,121

Amortization of refurbishment costs 1,340,313 1,735,875 1,340,313 1,735,875

amortization of intangible assets

Other expenses 36,591,180 29,765,317 35,427,444 28,538,697

44,931,239 36,573,565 43,458,500 35,157,177


13. STAFF COSTS GROUP BANK


Salaries and allowances 23,790,210 20,323,499 22,820,432 19,552,311

Staff training 2,814,490 1,766,078 1,862,198 1,685,243

Social security contributions 3,192,598 2,712,087 3,053,759 2,604,296

Provision for post – employment benefits 1,354,583 1,103,458 1,273,426 1,058,799

Leave allowance 1,608,525 1,497,164 1,543,401 1,437,741

Medical expenses 1,162,005 1,016,566 1,119,460 985,613

Others 6,487,003 5,812,013 6,296,048 5,665,806

40,409,415 34,230,865 37,968,724 32,989,808

14. INCOME TAX EXPENSE GROUP BANK


(a) Tax expenseCurrent taxes on profit for the year at 25%, 14,587,070 19,351,054 14,434,621 19,351,054(Subsidiary 30%)

Deferred taxation charge 1,094,114 144,913 1,000,520 156,339

Deferred tax charge relating to revaluation surplus 302,544 - 265,418 -

Tax paid relating to prior years 113,171 - 113,171 -

16,096,899 19,495,967 15,813,730 19,507,393

(b) Reconciliation of income tax expense to the expected tax based on accounting pro�t: GROUP BANK


Profit before income tax 61,921,535 60,004,868 61,870,954 59,764,049Tax calculated at the applicable rate (Group 25%), 15,480,384 18,001,461 15,467,739 17,929,215(subsidiary 30%)Net tax effect of expenses and income not 616,515 1,494,506 345,991 1,578,178

deductible for tax purposes

Tax expense 16,096,899 19,495,967 15,813,730 19,507,393


15. CASH AND BALANCES WITH GROUP OF TANZANIA GROUP BANK


Cash in hand 70,330,250 46,830,971 70,330,250 46,830,971Balances with Bank of Tanzania:

- Statutory Minimum Reserve 183,600,000 107,500,000 183,600,000 107,500,000

- Other balances 59,714,837 30,311,111 59,714,837 30,311,111

313,645,087 184,642,082 313,645,087 184,642,082

The Bank is required to maintain minimum cash reserves of 10% of deposits with Bank of Tanzania (Statutory Minimum Reserve). Statutory Minimum Reserve is not available to finance the Bank’s day to day operations and hence is excluded from cash and cash equivalent for the purpose of cash flow statement (note 42 ).

16. PLACEMENTS AND BALANCES WITH OTHER BANKS GROUP BANK


Placement denominated in foreign currencies

Maturing:

Within 1 month 113,249,244 30,375,736 113,249,244 30,375,736

Within 1 to 3 months 13,921,785 63,034,442 13,921,785 63,034,442

Within 3 to 6 months - 10,063,128 - 10,063,128

Within 6 to 9 months 20,070,000 - 20,070,000 -

Within 9 to 12 months 14,015,247 - 14,015,247 -

161,256,276 103,473,306 161,256,276 103,473,306

Placement denominated in local currency

Maturing:

Within 1 month 15,000,000 100,000 15,000,000 100,000

15,000,000 100,000 15,000,000 100,000

Balances with foreign Banks 75,881,438 36,686,155 75,881,438 36,686,155

Interest receivable 467,413 196,229 467,413 196,229

252,605,127 140,455,690 252,605,127 140,455,690

Placements and balances with other banks totaling Tshs 218,052,467,000 (2008 – Tshs 130,196,333,000) mature within three months and form part of cash and cash equivalents for the purpose of statement of cash flows (Note 42 b).


17. LOANS AND ADVANCES TO CUSTOMERS GROUP BANK


(a) Loans and advances

Loans and advances to customers 940,085,997 812,156,884 940,085,997 812,156,884

Loans and advances to staff 26,677,317 20,586,783 26,677,317 20,586,783

Interest receivable 15,410,147 15,452,285 15,410,147 15,452,285

982,173,461 848,195,952 982,173,461 848,195,952

Interest in suspense (5,821,981) (1,833,296) (5,821,981) (1,833,296)

Provision for impairment of loans and advances (26,846,444) (9,559,436) (26,846,444) (9,559,436)

(32,668,425) (11,392,732) (32,668,425) (11,392,732)

Net loans and advances 949,505,036 836,803,220 949,505,036 836,803,220

The effective interest rate on loans and advances to customers was 14.6% (2008: 14.3%)

(b) Analysis of advances to customers by maturity

Maturing:

Within one year 577,758,888 480,807,010 577,758,888 480,807,010

Between one year and three years 267,012,730 256,888,802 267,012,730 256,888,802

Over three years 137,401,843 99,107,408 137,401,843 99,107,408

982,173,461 836,803,220 982,173,461 836,803,220

(c) Movement in provision for loan impairment

At the beginning of the year 9,559,436 5,908,863 9,559,436 5,908,863

Net increase during the year (Note 17 (d)) 17,287,008 3,650,573 17,287,008 3,650,573

At the end of the year 26,846,444 9,559,436 26,846,444 9,559,436

(d) Loan Impairment charge

Increase in provision for loans 17,287,008 3,650,573 17,287,008 3,650,573

impairment [note 17(c)]

Over provision - 704,074 - 704,074

Bad debts charged off 1,798,788 1,927,878 1,798,788 1,927,878

Recoveries of charged off loans and advances (912,049) (1,263,329) (912,049) (1,263,329)

18,173,747 5,019,196 18,173,747 5,019,196


18. GOVERNMENT SECURITIES GROUP BANK


Treasury bills – held to maturity

Maturing within 30 days* 46,689,968 18,523,500 46,689,968 18,523,500

Maturing after 30 days but within 90 days* 62,087,409 73,124,800 62,087,409 73,124,800

Maturing after 90 days but within 180 days 23,867,900 33,719,711 23,867,900 33,719,711

Maturing after 180 days but within 364 days 51,756,915 8,985,000 51,756,915 8,985,000

184,402,192 134,353,011 184,402,192 134,353,011

Interest receivable 9,442,595 5,426,421 9,442,595 5,426,421

193,844,787 139,779,432 193,844,787 139,779,432

Treasury bonds – held to maturity

Maturing within 2 years 17,142,528 23,376,563 17,142,528 23,376,563

Maturing after 2 years but within 5 years 10,788,647 10,096,563 10,788,647 10,096,563


31,194,615 37,197,612 31,194,615 37,197,612


31,211,042 38,019,453 31,211,042 38,019,453

Government bonds – held to maturity

Maturing within 3 years 5,454,400 420,900 5,454,400 420,900




27,920,772 27,920,765 27,920,772 27,920,765

252,976,601 205,719,650 252,976,601 205,719,650

* Treasury bills worth Tshs. 108,777,377,000 (2008 – Tshs. 91,648,300,000) mature within three months

and form part of cash and cash equivalent for the purpose of statement of cash flows (note 42).

The weighted average effective interest rates were: treasury bills - 7.0% (2008 - 9.7%), treasury bonds

– 7.98% (2008- 12.4%) and Government bonds - 11% (2008 – 11.0%)


19. OTHER SECURITIES GROUP BANK


East African Development Group bonds

Maturing after 5 years 610,734 991,050 610,734 991,050

Preferential Trade Area bonds

Maturing after 3 years 895,010 1,200,000 895,010 1,200,000

Bhimji Depar Company bonds

Maturing after 1 year - 1,476,372 - 1,476,372


1,616,883 3,703,213 1,616,883 3,703,213

These bonds are classi�ed as held to maturity �nancial instruments and are stated at amortized cost. The weighted average effective interest rate on other securities was 10.55% (2008 – 10.55%).

20. EQUITY INVESTMENT 2009 2008 Tshs ‘000 Tshs ‘000

Investment in CRDB Microfinance Service Company Limited 728,136 728,136

The Bank owns 100% of the issued and paid up ordinary share capital of CRDB Microfinance Services Limited, a company incorporated in Tanzania under the Tanzanian Companies Act, 2002. The principal activities of the company are to manage microfinance portfolio of the CRDB Group Plc.

21. OTHER ASSETS GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Cheques and items for clearance 16,686,645 38,419,068 16,686,645 38,419,068

Prepayments 2,478,823 4,767,855 2,478,823 4,767,855

Advance payment for capital items and software 8,669,358 1,452,942 8,669,358 1,254,168

Sundry receivables 2,954,591 1,947,268 2,644,276 1,604,563

Bills receivable 249,056 108,157 249,056 108,157

Prepaid card stock 1,358,937 - 1,358,937 -

Less: impairment losses on other assets (972,396) (1,325,489) (972,396) (1,325,489)

31,425,014 45,369,801 31,114,699 44,828,322


22. REFURBISHMENT COSTS GROUP BANK


Balance at 1 January 3,336,910 2,820,634 3,336,910 2,820,634

Additions during the year 4,726,579 2,252,151 4,726,579 2,252,151

8,063,489 5,072,785 8,063,489 5,072,785

Less: amortization during the year (1,340,313) (1,735,875) (1,340,313) (1,735,875)

Balance at 31 December 6,723,176 3,336,910 6,723,176 3,336,910

23. INTANGIBLE ASSETS GROUP BANK


Cost

At 1 January 2,940,509 2,122,593 2,940,509 2,122,593

Additions 3,383,354 817,916 3,041,913 817,916

At 31 December 6,323,863 2,940,509 5,982,422 2,940,509

Amortization

At 1 January 1,756,857 1,407,895 1,756,857 1,407,895

Charge for the year 632,544 348,962 592,709 348,962

At 31 December 2,389,401 1,756,857 2,349,566 1,756,857

Net book value

At 31 December 3,934,462 1,183,652 3,632,856 1,183,652

The intangible assets relate to the computer software


24.

PRO

PERT

Y A

ND

EQ

UIP

MEN

T

Mot

or

O�

ce

Com

pute

r Sm

art c

ard

Secu

rity

M

obile

W

ork

in

Build

ings

ve

hicl

es

equi

pmen

t eq

uipm

ent

equi

pmen

t eq

uipm

ent

Bran

ch

prog

ress

To

tal

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Cost

At 1

Janu

ary

2008

4,

658,

376

2,01

8,92

7 7,

892,

342

2,97

2,15

9 4,

044,

127

708,

112

- 45

7,68

9 22

,751

,732

Add

ition

s

3,34

5,39

8 1,

404,

796

3,82

1,91

0 1,

647,

327

2,79

6,44

5 42

5,19

3 68

6,28

0 1,

524,

732

15,6

52,0

81

Dis

posa

ls

- (1

13,0

59)

- -

- -

- -

(113

,059

)

At 1

Janu

ary

2009

8,

003,

774

3,31

0,66

4 11

,714

,252

4,

619,

486

6,84

0,57

2 1,

133,

305

686,

280

1,98

2,42

1 38

,290

,754

Add

ition

s

1,46

3,32

8 1,

610,

624

4,06

7,63

9 1,

764,

012

1,19

9,25

2 34

3,04

4 1,

177,

162

2,99

8,79

5 14

,623

,856

Reva

luat

ion

gain

-

1,14

6,48

9 -

- -

- -

- 1,

146,

489

Dis

posa

ls

- -

(34,

218)

-

- -

- -

(34,

218)

At 3

1 D

ecem

ber 2

009

9,46

7,10

2 6,

067,

777

15,7

47,6

73

6,38

3,49

8 8,

039,

824

1,47

6,34

9 1,

863,

442

4,98

1,21

6 54

,026

,881

Dep

reci

atio

n

At 1

Janu

ary

2008

1,

250,

183

715,

051

3,04

3,15

9 1,

258,

134

1,39

1,22

6 19

9,49

8 -

- 7,

857,

251

Char

ge fo

r the

yea

r 25

8,70

9 57

4,36

9 1,

837,

420

774,

074

604,

802

182,

654

86,4

90

- 4,

318,

518

Elim

inat

ed o

n di

spos

al

- (7

,065

) -

- -

- -

- (7

,065

)

At 1

Janu

ary

2009

1,

508,

892

1,28

2,35

5 4,

880,

579

2,03

2,20

8 1,

996,

028

382,

152

86,4

90

- 12

,168

,704

Char

ge fo

r the

yea

r 44

6,58

6 75

3,23

5 2,

302,

961

1,07

7,79

7 82

2,72

7 26

2,96

8 19

6,56

5 -

5,86

2,83

9

Elim

inat

ed o

n di

spos

al

- -

(29,

399)

-

- -

- -

(29,

399)

At 3

1 D

ecem

ber 2

009

1,95

5,47

8 2,

035,

590

7,15

4,14

1 3,

110,

005

2,81

8,75

5 64

5,12

0 28

3,05

5 -

18,0

02,1

44

Net

boo

k va

lue

At 3

1 D

ecem

ber 2

009

7,51

1,62

4 4,

032,

187

8,59

3,53

2 3,

273,

493

5,22

1,06

9 83

1,22

9 1,

580,

387

4,98

1,21

6 36

,024

,737

At 3

1 D

ecem

ber 2

008

6,49

4,88

2 2,

028,

310

6,83

3,67

3 2,

587,

278

4,84

4,54

4 75

1,15

3 59

9,79

0 1,

982,

421

26,1

22,0

50

GRO

UP


24.

PRO

PERT

Y A

ND

EQ

UIP

MEN

T (C

onti

nued

)

Mot

or

O�

ce

Com

pute

r Sm

art c

ard

Secu

rity

M

obile

W

ork

in

Build

ings

ve

hicl

es

equi

pmen

t eq

uipm

ent

equi

pmen

t eq

uipm

ent

Bran

ch

prog

ress

To

tal

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Tshs

‘000

Ts

hs ‘0

00

Cost

At 1

Janu

ary

2008

4,

658,

376

2,01

8,92

7 7,

892,

342

2,97

2,15

9 4,

044,

127

708,

112

- 45

7,68

9 22

,751

,732

Add

ition

s

3,34

5,39

8 1,

404,

796

3,82

1,91

0 1,

647,

327

2,79

6,44

5 42

5,19

3 68

6,28

0 1,

524,

732

15,6

52,0

81

Dis

posa

ls

- (1

13,0

59)

- -

- -

- -

(113

,059

)

Tran

sfer

to s

ubsi

diar

y -

(791

,545

) (1

44,2

19)

(1,2

52)

- -

- -

(937

,016

)

8,

003,

774

2,51

9,11

9 11

,570

,032

4,

618,

234

6,84

0,57

2 1,

133,

305

686,

280

1,98

2,42

1 37

,353

,737

At 1

Janu

ary

2009

8,

003,

774

2,51

9,11

9 11

,570

,032

4,

618,

234

6,84

0,57

2 1,

133,

305

686,

280

1,98

2,42

1 37

,353

,737

Add

ition

s

1,46

3,32

8 1,

279,

739

3,97

5,10

8 1,

764,

012

1,19

9,25

2 34

3,04

4 1,

177,

162

2,99

8,79

5 14

,200

,440

Reva

luat

ion

gain

-

1,01

6,67

1 -

- -

- -

- 1,

016,

671

Dis

posa

ls

- -

(34,

218)

-

- -

- -

(34,

218)

At 3

1 D

ecem

ber 2

009

9,46

7,10

2 4,

815,

529

15,5

10,9

22

6,38

2,24

6 8,

039,

824

1,47

6,34

9 1,

863,

442

4,98

1,21

6 52

,536

,631

Dep

reci

atio

n

At 1

Janu

ary

2008

1,

250,

183

715,

051

3,04

3,15

9 1,

258,

134

1,39

1,22

6 19

9,49

8 -

- 7,

857,

251

Char

ge fo

r the

yea

r 25

8,70

9 43

9,17

6 1,

811,

542

774,

074

604,

802

182,

654

86,4

90

- 4,

157,

447

Elim

inat

ed o

n di

spos

al

- (7

,066

) -

- -

- -

- (7

,066

)

Elim

inat

ed o

n tr

ansf

er

to s

ubsi

diar

y -

(177

,696

) (4

2,82

9)

(563

) -

- -

- (2

21,0

88)

1,

508,

892

969,

465

4,81

1,87

2 2,

031,

645

1,99

6,02

8 38

2,15

2 86

,490

-

11,7

86,5

44

At 1

Janu

ary

2009

1,

508,

892

969,

465

4,81

1,87

2 2,

031,

645

1,99

6,02

8 38

2,15

2 86

,490

-

11,7

86,5

44

Char

ge fo

r the

yea

r 44

6,58

6 56

1,02

3 2,

264,

168

1,07

7,79

7 82

2,72

7 26

2,96

8 19

6,56

5 -

5,63

1,83

4

Elim

inat

ed o

n di

spos

al

- -

(29,

399)

-

- -

- -

(29,

399)

At 3

1 D

ecem

ber 2

009

1,95

5,47

8 1,

530,

488

7,04

6,64

0 3,

109,

442

2,81

8,75

5 64

5,12

0 28

3,05

5 -

17,3

88,9

78

Net

boo

k va

lue

At 3

1 D

ecem

ber 2

009

7,51

1,62

4 3,

285,

041

8,46

4,28

3 3,

272,

804

5,22

1,06

9 83

1,22

9 1,

580,

387

4,98

1,21

6 35

,147

,652

At 3

1 D

ecem

ber 2

008

6,49

4,88

2 1,

549,

654

6,75

8,16

1 2,

586,

589

4,84

4,54

4 75

1,15

3 59

9,79

0 1,

982,

421

25,5

67,1

94

BAN

K


24. PROPERTY AND EQUIPMENT (Continued)

Work in progress represents bank’s buildings under construction.

Revaluation of motor vehicles was done on 31 December 2009 by an independent valuer.

The net book value of the motor vehicles on cost basis as at 31 December 2009 was TZS 2,885,699,000 for the group and TZS 2,268,370,000 for the bank.

25. ASSETS CLASSIFIED AS HELD FOR SALE O�ce/ O�ce/ Motor computer Motor computer vehicles equipments vehicles equipments 2009 2009 2008 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Cost 780,786 3,311 807,644 4,595,950

Accumulated depreciation (780,786) (3,311) (807,644) (4,592,639)

Net book value - - - 3,311

O�ce/ computer equipments with value of Tshs. 3.3 million were destroyed as they had no use/ scraped with zero proceeds, and a movement of Motor vehicle is a result of a donation of a Motor vehicle with value of Tshs. 26.8 million.

26. PREPAID OPERATING LEASES GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Leasehold land

Cost

At 1 January 414,859 414,859 414,859 414,859

Additions during the year 343,606 - 343,606 -

At 31 December 758,465 414,859 758,465 414,859

Amortization

At 1 January 13,426 6,713 13,426 6,713

Charge for the year 10,692 6,713 10,692 6,713

At 31 December 24,118 13,426 24,118 13,426

Net book value 734,347 401,433 734,347 401,433


27. DEPOSITS FROM CUSTOMERS GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Current and demand accounts 657,185,991 487,283,367 657,618,955 487,803,127

Savings accounts 463,143,240 385,008,220 463,143,240 385,008,220

Term deposits 489,301,542 392,842,427 489,301,542 392,842,427

Interest payable on deposits 11,388,109 7,947,582 11,388,109 7,947,582

1,621,018,882 1,273,081,596 1,621,451,846 1,273,601,357

Analysis of customer deposits by maturity:

Payable within 90 days 1,429,773,397 1,099,771,143 1,430,206,361 1,100,290,904

Payable after 90 days and within one year 190,403,179 172,067,248 190,403,179 172,067,248

Payable after one year 842,306 1,243,205 842,306 1,243,205

1,621,018,882 1,273,081,596 1,621,451,846 1,273,601,357

The weighted average effective interest rates on deposits at 31 December 2009 was: Savings - 1.4% and time deposits – 6.5%

28. DEPOSITS FROM AND LOANS DUE TO OTHER BANKS GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Deposits 3,775,915 1,851,419 3,775,915 1,851,419

Loans - 1,500,000 - 1,500,000

3,775,915 3,351,419 3,775,915 3,351,419

The maturity analysis for deposits from and loans due to other banks at the end of the reporting

period is summarized in note 47.

29. OTHER LIABILITIES GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Bills payable * 4,364,205 15,428,725 4,364,205 15,428,725

Sundry payables 12,249,156 8,008,762 11,544,977 8,008,762

Dividend payable ** 701,416 608,712 701,416 608,712

Accrued expenses 2,461,735 5,753,319 2,443,454 5,452,742

Other liabilities 205,238 205,238 205,238 205,238

19,981,750 30,004,756 19,259,290 29,704,179

* Bills payable represents Group’s cheques issued to customers that have not yet been presented

for payment.

** Dividend payable represents uncollected dividends by the Group’s shareholders.


30. CURRENT INCOME TAX ASSET GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Balance at 1 January 455,556 202,072 352,392 202,072

Payments during the year 19,089,000 19,604,538 18,846,000 19,501,374

Charge to statement of comprehensive income (14,587,070) (19,351,054) (14,434,621) (19,351,054)

Balance at 31 December 4,957,486 455,556 4,763,771 352,392

31. SUBORDINATED DEBT GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000


Accrued interest during the year 96,000 96,000 96,000 96,000

Interest paid during the year (96,000) (96,000) (96,000) (96,000)

Balance at 31 December 1,920,000 1,920,000 1,920,000 1,920,000

The subordinated debt from DANIDA Investment Fund (DIF) of Tshs 1,920,000,000 is repayable in 8 years from 30 December 2005. Interest is payable yearly at a rate of 5% p.a.

32. FINANCIAL DEEPENING CHALLENGE FUND (FDCF) GRANT GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

At 1 January 60,294 192,368 60,294 192,368

Credited to profit or loss for the year (60,294) (132,074) (60,294) (132,074)

At 31 December - 60,294 - 60,294

The Group entered into a contract with Enterplan Limited UK, whereby Enterplan agreed to pay

a grant not exceeding Sterling Pound (GBP) 998,850 over three years in support of the Smart Card

project under the Financial Deepening Fund (FDCF). The contract expired on 31 March 2005.

33. DANISH INTERNATIONAL DEVELOPMENT AGENCY (DANIDA) GRANT

GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

At 1 January - 141,796 - 141,796

Credited to profit or loss for the year - (129,215) - (129,215)

Repayment to DANIDA - (12,581) - (12,581)

At 31 December - - - -


33. DANISH INTERNATIONAL DEVELOPMENT AGENCY (DANIDA) GRANT (Continued)

DANIDA grant is under the Business Sector Program Support II (BSPS II). The program involves strengthening the Group in performance and business processes. The program also supports Microfinance and SME program of the Group. The program had come to an end on 30th June 2008.

34. FINANCIAL SECTOR DEEPENING TRUST (FSDT) GRANT GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

At 1 January 334,228 - - -

Grant received during the year 833,378 804,971 - -

Credited to profit or loss for the year (867,063 (470,743) - -

At 31 December 300,543 334,228 - -

In the year 2008, the Group secured a three years grant of USD 3.8 million from the Financial Sector Deepening Trust of Tanzania (FSDT) for strengthening its micro�nance partners and expand outreach. A total of USD 654,708 was received during the year (2008 - USD 628,872).

35. RURAL FINANCIAL SERVICES PROGRAM (RFSP) ASSET GRANT GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

At 1 January 115,500 - - -

Grant transferred from CRDB Plc - 173,250 - -

Credited to profit or loss for the year (57,750) (57,750) - -

At 31 December 57,750 115,500 - -

This asset grant relates to four motor vehicles purchased through a grant received under the Rural Financial Services Programme (RFSP) under the Prime Minister’s Office-United Republic of Tanzania for support of Microfinance Institutions. In the year 2008, this grant was transferred to the CRDB Microfinance Services Limited from CRDB Bank Plc.

36. CRDB GRANT GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

At 1 January - - - -

Grant transferred from CRDB Plc 43,458 - - -

Credited to profit or loss for the year (5,432) - - -

At 31 December 38,026 - - -

The grant relates to taxes on purchase of the motor vehicle for the General Manager of the bank’s subsidiary which was paid by the bank on behalf of the subsidiary.


37. DEFERRED INCOME TAX ASSETS GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Accelerated capital allowance (288,244) 256,745 (133,024) 323,254

Other movements 497,264 1,347,115 459,521 1,269,180

209,020 1,603,860 326,496 1,592,434

Deferred income taxes are calculated on all temporary di�erences under the liability method

using the enacted rate of 25%. The deferred income assets are attributable to the following

items: GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Movement in deferred tax assets is as follows:


Charge for the year (1,394,840) (144,913) (1,265,938) (156,339)

Balance at 31 December 209,020 1,603,860 326,496 1,592,434

38. SHARE CAPITAL BANK

2009 2008

Tshs ‘000 Tshs ‘000

Authorized

4,000,000,000 (2008: 1,000,000,000) ordinary shares of 100,000,000 100,000,000

Tshs 25 (2008: Tshs 100) each

Issued and fully paid

2,176,532,160 (2008: 247,333,200) ordinary shares of 54,413,304 24,733,320

Tshs 25 (2008: Tshs 100) each

The movement in share capital and the number of shares from January to December 2009

was as follows:Share capitalAs at 1 January 24,733,320 24,733,320Issue of bonus 24,733,320 -Rights issue 4,946,664 -As at 31 December 54,413,304 24,733,320Number of sharesAs at 1 January 247,333,200 247,333,200Issue of bonus 247,333,200 -Share split 1,483,999,200 -Rights issue 197,866,560 -

As at 31 December 2,176,532,160 247,333,200


39. BASIC EARNINGS PER SHARE 2009 2008


Profit for the year 45,824,636 40,508,901

Weighted average number of shares (‘000) 2,103,953 247,333

Basic earnings per share 22 164

The denomination for the purpose of calculating basic earnings per share for 2008 has been adjusted to reflect the following which happened during the year.

• Capitalization issue of 247,333,200 bonus share;• Share split of 1:4• Rights issue of 171,370,148 shares and,• Initial Public Offer of 26,496,412 ordinary shares.

40. DEFINED BENEFIT GAIN & ASSET

2009 2008


Actuarial valuation 2,889,468 -

Amount paid during the year (1,015,738) -

Benefit liabilities 1,873,729 -

Available funds 2,383,758 -

510,029 -

41. REGULATORY CAPITAL - GROUP

The Bank complied with minimum capital requirement as required by sections 16 and 17 of the Banking and Financial Institution Act, 2006 and the Bank of Tanzania Capital Adequacy Regulations 2008. The Bank’s capital is computed in accordance with these regulations, as follows:


41. REGULATORY CAPITAL – GROUP (Continued) 2009 2008


Share capital 54,413,304 24,733,320

Share premium 18,764,932 -

Revenue reserve 132,566,359 115,921,365

205,744,595 140,654,685

Less: Prepaid expenses (2,478,823) (4,767,855)

Intangible assets (3,632,855) (1,183,652)

Core capital ( Tier 1) 199,632,916 134,703,178

Add: Supplementary capital (Tier 2):

Subordinated debt* 1,536,000 1,920,000

201,168,916 136,623,178

The risk weighted assets are measured by means of a hierarchy of four risk weights classified according to the nature of asset and reflecting an estimate of the credit risk associated with each assets and counterparty. A similar treatment is adopted for off-balance sheet exposure, with some adjustments to reflect the more contingent nature of the potential losses.

*Subordinated debt has been discounted by 20% after 5 years. 2009 2008


Tier 1 Capital & Tier 2 Capital 201,483,506 136,623,178

Risk–weighted assets

On-balance sheet 899,573,909 712,719,411

Off-balance sheet 54,461,427 71,198,835

Total risk-weighted assets 954,035,336 783,918,246

Basel ratios Tier 1 (BoT minimum – 10%) 21% 17%

Tier 1 + Tier 2 (BoT minimum – 12%) 21% 17%


42. CASH GENERATED FROM OPERATING ACTIVITIES

(a) Reconciliation of pro�t before taxation to net cash used in operations

GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Profit before income tax 61,921,535 60,004,868 61,870,954 59,764,049

Adjustment for non-cash items:

Depreciation of property and equipment 5,862,839 4,318,518 5,631,833 4,157,447

Amortization of intangible assets 632,544 348,962 592,709 348,962

Amortization of prepaid operating leases 10,692 6,713 10,692 6,713

Amortization of refurbishment costs 1,340,313 1,735,875 1,340,313 1,735,875

Gain on disposal of property and equipment (247) (28,537) (247) (28,537)

69,767,676 66,386,399 69,446,254 65,984,509

Movement in working capital items:

Increase in statutory minimum reserve (76,100,000) (24,000,000) (76,100,000) (24,000,000)

Increase in deposits from and balances

due to other Groups (24,293,304) (9,750,644) (24,293,304) (9,750,644)

Increase in Treasury Bills (36,936,279) (4,821,676) (36,936,279) (4,821,676)

Decrease/ (Increase) in Treasury Bonds,

Government Bond & Other Securities 8,894,734 (10,515,185) 8,894,734 (10,515,185)

Increase in loans and advances to customers (112,701,815) (248,456,400) (112,701,815) (248,456,400)

Decrease in other assets 13,944,788 2,110,545 13,713,623 2,652,024

Increase in deposits from customers 347,937,287 259,750,293 347,850,490 260,270,054

(Decrease)/ increase in other liabilities (10,115,710) 9,407,314 (10,537,593) 9,106,737

Decrease in FDCF grant (60,294) 2,608 (60,294) (447,120)

Increase in FSDT grant 4,340 - - -

Decrease in RFSP grant (57,750) - - -

Decrease in subordinated loan - (96,000) - (96,000)

Net cash generated from operating activities 180,283,673 40,017,254 179,275,816 39,926,299

(b) Analysis of cash and cash equivalentsCash in hand 70,330,250 46,830,971 70,330,250 46,830,971

Balances with Bank of Tanzania 59,714,837 30,311,110 59,714,837 30,311,110

Balance with other banks 218,052,467 130,196,333 218,052,467 130,196,333

Treasury bills 108,777,376 91,648,300 108,777,376 91,648,300

Deposits from and loans due to other banks

maturing and repayable within

3 months respectively. (3,775,915) (3,351,419) (3,775,915) (3,351,419)

453,099,016 295,635,295 453,099,016 295,635,295


43. CONTINGENT LIABILITIES GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Guarantees and indemnities 22,567,345 20,391,317 22,567,345 20,391,317

Letters of credit 104,609,957 42,519,886 104,609,957 42,519,886

Travelers cheques 19,575 18,218 19,575 18,218

Outward foreign bills for collection 568,156 755,906 568,156 755,906

127,765,033 63,685,327 127,765,033 63,685,327

Letters of credit are commitments by the bank to make payments to third parties, on production of agreed documents on behalf of customers and are reimbursed by the customers.

Guarantees and indemnities are generally written by the Bank to support performance by a customer to third parties. The Bank will only be required to meet these obligations in the event of the customer’s default.

LitigationThe Group is, in the normal course of business, involved in a number of court cases. The Group has taken appropriate legal steps to defend against the claims on court cases. The Group has provided for the liabilities arising out of contractual obligations. No other provisions has been made awaiting the court ruling, as in the opinion of the Directors the potential liability is neither probable nor quanti�able at the date of these �nancial statements.

44. COMMITMENTS GROUP BANK 2009 2008 2009 2008 Tshs ‘000 Tshs ‘000 Tshs ‘000 Tshs ‘000

Commitments to extend credit 60,500,000 65,786,000 60,500,000 65,786,000

Capital commitments

Authorized and contracted for 3,511,797 17,332,548 3,511,797 17,332,548

Authorized not yet contracted for 500,823 359,500 500,823 359,500

4,012,620 17,692,048 4,012,620 17,692,048

Capital commitments authorized and contracted are in respect of costs for refurbishment of NSSF- Mwanza, Kibaha, Shinyanga, Dodoma, University of Dar es Salaam, Kariakoo, Marangu, Mbagala, Moshi, Musoma, Morogoro, Mpanda, Zanzibar, Holland House, Kijitonyama, Lindi, Manyara, Meru, and Head Office.

Capital commitments authorized but not yet contracted for relates to purchase of personalization machine, furnitures, UPS, laser / report printers and CCTV equipment.


45. CONCENTRATION OF ASSETS, LIABILITIES AND OFF BALANCE SHEET ITEMSDetails of signi�cant concentrations of the Banks assets, liabilities and o� balance sheet items by economic sector are as detailed below:

(a) Advances to customers (Gross) 2009 2008 Tshs ‘000 % Tshs ‘000 %

Public sector - - -

Agriculture fishing, forestry & hunting 257,019,225 26 237,871,264 28

Finance, insurance & business service 70,586,460 7 59,355,952 7

Mining & quarrying 10,513,394 1 7,143,657 1

Manufacturing 68,217,131 7 91,785,332 11

Real estate & construction 52,592,375 5 41,682,732 5

Transport & communication 57,808,634 7 33,329,377 4

Trade & commerce 166,051,655 17 127,976,180 15

Tourism, hotels & restaurants 45,629,495 5 31,114,427 4

Electricity, gas and water 72,359,944 7 110,384,957 13

Personal 121,453,096 12 105,103,486 12

Other 59,942,052 6 2,448,587 -

982,173,461 100 848,195,952 100

(b) O� balance sheet items (Letter of credit, guarantees, travelers cheques, and OFBC) 2009 2008 Tshs ‘000 % Tshs ‘000 %

Agriculture fishing, forestry & hunting 14,477,179 11 5,464,318 9

Electricity, gas and water 28,042,595 22 17,731,423 28

Finance, insurance & business service 2,453,656 2 295,054 -

Real estate & construction 38,153,191 30 10,135,162 16

Trade & commerce 27,601,926 22 22,468,863 35

Transport & Communication 8,902,411 7 6,208,699 10

Other services 7,546,344 6 1,381,808 2

127,177,302 100 63,685,327 100

46. RELATED PARTY TRANSACTIONS Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions.


46. RELATED PARTY TRANSACTIONS (Continued) Advances to customers at 31 December 2009 include advances and loans to companies associated with Directors and key management personnel.

The volumes of related party transactions for the year and the outstanding amounts at the year end are as follows:

COMPANIES ASSOCIATED DIRECTORS AND OTHER WITH DIRECTORS KEY MANAGEMENT PERSONNEL

2009 2008 2009 2008 Tshs '000 Tshs '000 Tshs '000 Tshs '000

Loan and advances

At 1 January - - 4,137,090 2,404,869

Net movement during the year 59,067 - (681,926) 1,732,221

At 31 December 59,067 - 3,455,164 4,137,090

Interest earned 2,694 - 139,093 271,878

These loans and advances are performing and are adequately secured

Deposits

At 1 January 46,194,556 30,129,799 654,937 593,851

Net movement during the year 17,589,087 16,064,757 73,208 61,086

At 31 December 63,783,643 46,194,556 728,145 654,937

Interest paid 982,584 1,362,483 19,253 18,064

Compensation of Key Management Personnel

Key management personnel comprise of Board of Directors, Managing Director and head of units who are reporting directly to the Managing Director.

Compensations of key management are as follows:-

GROUP 2009 2008 Tshs ‘000 Tshs ‘000

Short term employee benefits 1,621,151 1,569,331

Post employment benefits 249,021 236,325

1,870,172 1,805,656

Directors’ fees, which are included in the compensation of key management personnel, were Tshs. 219,412,477 (2008- Tshs 181,046,257).


47.

LIQ

UID

ITY

RISK

The

tabl

e be

low

ana

lyse

s as

sets

and

liab

ilitie

s of

the

Gro

up in

to re

leva

nt m

atur

ity g

roup

ings

bas

ed o

n th

e re

mai

ning

per

iod

at31

Dec

embe

r 200

9 to

the

cont

ract

ual m

atur

ity d

ate.

U

p to

1

1 –

3 4

– 6

7 –

12

1 –

3 4-

5 O

ver

Tota

l

Mon

th

Mon

ths

Mon

ths

Mon

ths

Year

s Ye

ars

5 Ye

ars

Ts

hs’0

00

Tshs

’000

Ts

hs’0

00

Tshs

’000

Ts

hs’0

00

Tshs

’000

Ts

hs’0

00

Tshs

’000

FIN

AN

CIA

L A

SSET

S

Cash

and

bal

ance

s with

Ban

k of

Tan

zani

a

313,

645,

087

- -

- -

- -

313,

645,

087

Plac

emen

ts a

nd b

alan

ces w

ith o

ther

ban

ks

252,

605,

127

- -

- -

- -

252,

605,

127

Loan

s and

adv

ance

s to

cust

omer

s -

149,

444,

114

128,

563,

688

299,

751,

087

234,

344,

304

137,

401,

843

- 94

9,50

5,03

6

Gov

ernm

ent s

ecur

ities

46

,689

,968

62

,087

,409

23

,867

,900

61

,215

,937

22

,596

,928

26

,603

,045

9,

915,

414

252,

976,

601

Oth

er se

curit

ies

- -

- 11

1,13

9 89

5,01

0 61

0,73

4 -

1,61

6,88

3

Tota

l �na

ncia

l ass

ets

612,

940,

182

211,

531,

523

152,

431,

588

361,

078,

163

257,

836,

242

164,

615,

622

9,91

5,41

4 1,

770,

348,

734

FIN

AN

CIA

L LI

ABI

LITI

ES

Dep

osits

from

cus

tom

ers

(510

,789

,793

) (5

50,9

61,0

61)

(127

,138

,259

) (1

04,4

60,2

72)

(93,

831,

862)

(1

40,4

55,1

22)

(93,

382,

814)

(1,

621,

018,

882)

Dep

osits

from

and

loan

s due

to o

ther

ban

ks

(3,2

68,4

20)

(507

,495

) -

- -

- -

(3,7

75,9

15)

Subo

rdin

ated

loan

cap

ital

- -

- -

- (1

,920

,000

) -

(1,9

20,0

00)

Tota

l �na

ncia

l lia

bilit

ies

(51

4,05

8,21

3)

(551

,468

,556

) (1

27,1

38,2

59)

(104

,460

,272

) (9

3,83

1,86

2)

(142

,375

,122

) (9

3,38

2,81

4) (

1,62

6,71

4,79

7)

Net

liqu

idity

gap

98,

881,

969

(3

39,9

37,0

33)

25,2

93,3

29

256

,617

,891

16

4,00

4,38

0

2

2,24

0,50

0

(83,

467,

400)

1

43,6

33,9

37

At 3

1 D

ecem

ber 2

008

Tota

l �na

ncia

l ass

ets

343,

621,

272

73,1

24,8

00

39,9

67,9

73

490,

283,

357

281,

741,

737

110,

403,

971

32,6

36,3

01

1,37

1,77

9,41

1

Tota

l �na

ncia

l lia

bilit

ies

(86,

485,

783)

(3

12,9

66,2

60)

(360

,960

,558

) (5

14,7

96,2

40)

(1,2

24,1

74)

(1,9

20,0

00)

-

(1,2

78,8

72,7

76)

Net

liqu

idity

gap

25

7,13

5,48

9

(239

,841

,460

) (3

20,9

92,5

85)

(24,

512,

883)

28

0,51

7,56

3

108,

483,

971

32,

636,

301

9

2,90

6,63

5


48.

INTE

REST

RA

TE R

ISK

The

tabl

e be

low

sum

mar

izes

the

exp

osur

e to

inte

rest

rat

e ris

k. In

clud

ed in

the

tab

le a

re t

he G

roup

’s a

sset

s an

d lia

bilit

ies

at c

arry

ing

amou

nts,

cat

egor

ized

by

the

earli

er o

f eith

er c

ontr

actu

al re

pris

ing

or m

atur

ity d

ates

. The

Gro

up d

oes n

ot b

ear a

n in

tere

st ra

te ri

sk o

n o�

ba

lanc

e sh

eet i

tem

s.

Up

to

1 –

3 4

– 6

7 –

12

1 –

3 O

ver

Non

-inte

rest

To

tal

1

Mon

th

Mon

ths

Mon

ths

Mon

ths

Year

s 3

Year

s Be

arin

g

Ts

hs’0

00

Tshs

’000

Ts

hs’0

00

Tshs

’000

Ts

hs’0

00

Tshs

’000

Ts

hs’0

00

Tshs

’000

FIN

AN

CIA

L A

SSET

S

Cash

and

bal

ance

s with

Ban

k of

Tan

zani

a

- -

- -

- -

313,

645,

087

313,

645,

087

Plac

emen

t and

bal

ance

s with

oth

er b

anks

25

2,60

5,12

7 -

- -

- -

- 25

2,60

5,12

7

Loan

s and

adv

ance

s -

149,

444,

114

128,

563,

688

299,

751,

087

234,

344,

304

137,

401,

843

- 94

9,50

5,03

6

Gov

ernm

ent s

ecur

ities

46

,689

,968

62

,087

,409

23

,867

,900

61

,215

,937

22

,596

,928

26

,603

,045

9,

915,

414

252,

976,

601

Oth

er se

curit

ies

- -

- 11

1,13

9 89

5,01

0 61

0,73

4 -

1,61

6,88

3

Tota

l fina

ncia

l ass

ets

299

,295

,095

2

11,5

31,5

23

152,

431,

588

3

61,0

78,1

63

257

,836

,242

16

4,61

5,62

2

323

,560

,501

1

,770

,348

,734

FIN

AN

CIA

L LI

ABI

LITI

ES

Dep

osits

from

cus

tom

ers

(510

,789

,793

) (5

50,9

61,0

61)

(127

,138

,259

) (1

04,4

60,2

72)

(93,

831,

862)

(1

40,4

55,1

22)

(93,

382,

814)

(1,6

21,0

18,8

82))

Dep

osits

from

and

loan

s due

to o

ther

ban

ks

(3,2

68,4

20)

(507

,495

) -

- -

- -

(3,7

75,9

15)

Tota

l fina

ncia

l lia

bilit

ies

(514

,058

,213

) (5

51,4

68,5

56)

(127

,138

,259

) (1

04,4

60,2

72)

(93,

831,

862)

(1

40,4

55,1

22)

(93,

382,

814)

(1,

624,

794,

797)

Inte

rest

rate

sens

itivi

ty g

ap

(

214,

763,

118)

(3

39,9

37,0

33)

25,2

93,3

29

256,

617,

891

16

4,00

4,38

0

24,1

60,5

00

230,

177,

687

145,

553,

937

At 3

1 D

ecem

ber 2

008

Tota

l �na

ncia

l ass

ets

343,

621,

272

73,1

24,8

00

39,9

67,9

73

490,

283,

357

281,

741,

737

110,

403,

971

32,6

36,3

01

1,37

1,77

9,41

1

Tota

l �na

ncia

l lia

bilit

ies

(86,

485,

783)

(3

12,9

66,2

60)

(360

,960

,558

) (5

14,7

96,2

40)

(1,2

24,1

74)

(1,9

20,0

00)

-

(1,

278,

872,

776)

Net

liqu

idity

gap

25

7,13

5,48

9

(239

,841

,460

) (3

20,9

92,5

85)

(24,

512,

883)

28

0,51

7,56

3 10

8,48

3,97

1

32,6

36,3

01

92,9

06,6

35


49.

FORE

IGN

EXC

HA

NG

E RI

SK

The

Gro

up o

pera

tes w

holly

with

in T

anza

nia

and

its a

sset

s and

liab

ilitie

s are

repo

rted

in th

e lo

cal c

urre

ncy.

The

Gro

up’s

cur

renc

y ris

k is

m

anag

ed w

ithin

the

Bank

of T

anza

nia

expo

sure

gui

delin

e of

20%

cor

e ca

pita

l. Th

e G

roup

’s m

anag

emen

t mon

itors

fore

ign

curr

ency

ex

posu

re o

n a

daily

bas

is. T

he G

roup

’s c

urre

ncy

posi

tion

as a

t 31

Dec

embe

r 200

9 w

as a

s fo

llow

s:

TS

HS

USD

G

BP

EURO

O

THER

S TO

TAL

Ts

hs’0

00

Tshs

’000

Ts

hs’0

00

Tshs

’000

Ts

hs’0

00

Tshs

’000

FIN

AN

CIA

L A

SSET

S

Cash

and

bal

ance

s with

Ban

k of

Tan

zani

a

296,

323,

616

13,7

76,2

69

472,

986

3,07

2,21

6 -

313,

645,

087

Plac

emen

t and

bal

ance

s with

oth

er B

anks

15

,316

,170

18

0,13

3,63

1 4,

807,

015

39,4

55,3

51

12,8

92,9

60

252,

605,

127

Loan

s and

adv

ance

s 75

9,10

3,30

3 19

0,40

1,73

3

-

949,

505,

036

Gov

ernm

ent s

ecur

ities

25

2,97

6,60

1 -

- -

- 25

2,97

6,60

1

Tota

l �na

ncia

l ass

ets

1,32

3,71

9,69

0 38

4,31

1,63

3 5,

280,

001

42,5

27,5

67

12,8

92,9

60

1,76

8,73

1,85

1

FIN

AN

CIA

L LI

ABI

LITI

ES

Dep

osits

from

cus

tom

ers

(1,2

29,2

53,0

92)

(330

,553

,351

) (5

,334

,836

) (4

2,69

5,64

4)

(13,

181,

960)

(1

,621

,018

,882

)

Dep

osits

from

and

loan

s due

to o

ther

ban

ks

(3,5

50,6

04)

(225

,311

) -

- -

(3,7

75,9

15)

Subo

rdin

ated

loan

cap

ital

(1,9

20,0

00)

- -

- -

(1,9

20,0

00)

Tota

l �na

ncia

l lia

bilit

ies

(1,2

34,7

23,6

96)

(330

,778

,662

) (5

,334

,836

) (4

2,69

5,64

4)

(13,

181,

960)

(1,6

26,7

14,7

97)

Net

bal

ance

shee

t pos

ition

8

8,99

5,99

4

53,

532,

971

(5

4,83

5)

(168

,077

) (2

89,0

00)

1

42,0

17,0

54

At 3

1 D

ecem

ber 2

008

Tota

l �na

ncia

l ass

ets

343,

621,

272

73,1

24,8

00

39,9

67,9

73

490,

283,

357

281,

741,

737

110,

403,

971

Tota

l �na

ncia

l lia

bilit

ies

(86,

485,

783)

(3

12,9

66,2

60)

(360

,960

,558

) (5

14,7

96,2

40)

(1,2

24,1

74)

(1

,920

,000

)

Net

liqu

idity

gap

25

7,13

5,48

9

(239

,841

,460

) (3

20,9

92,5

85)

(24,

512,

883)

28

0,51

7,56

3

108

,483

,971


50. DIVIDENDS In respect of the current year, the Directors propose that a total dividend of Tshs. 15,235,725,120 (2008 – Tshs 4,353,066,320) will be paid to shareholders. This dividend is subject to approval by shareholders at the Annual General Meeting and, in line with the provisions of International Accounting Standard No 10, has not been included as a liability in these �nancial statements.

51. ASSETS PLEDGED AS SECURITYAs at 31 December 2009, there were no assets pledged by the group to secure liabilities and there were no secured Group liabilities (2008: NIL).

52. COUNTRY OF INCORPORATIONThe Bank is incorporated under the Tanzania Companies Act 2002 and domiciled in Tanzania.

53. CURRENCYThese financial statements are presented in thousands of Tanzania Shillings (Tshs’000).


Taarifa inatolewa kwamba Mkutano Mkuu wa Kumi na Tano wa CRDB BANK PLC utafanyika siku ya Jumamosi tarehe 26 Juni 2010, katika Kituo cha Mikutano cha Kimataifa Arusha (AICC), Ukumbi wa Simba, kuanzia saa tatu kamili (Saa 3.00) asubuhi kujadili dondoo zifuatazo:

1. Kufungua Mkutano.2. Kuchagua Mwenyekiti na Makamu Mwenyekiti.3. Kuridhia Dondoo.4. Kuthibitisha kumbukumbu za Mkutano Mkuu uliopita.5. Kujadili yatokanayo na kumbukumbu za Mkutano Mkuu wa Kumi na Nne.6. Kuthibitisha kumbukumbu za Mkutano Mkuu Maalum uliofanyika 2008.7. Kujadili yatokanayo na kumbukumbu za Mkutano Mkuu Maalum uliofanyika 2008.8. Kujadili na kupokea Taarifa ya Bodi ya Wakurugenzi na Taarifa za Mahesabu

yaliyokaguliwa ya mwaka 2009. 8.1 Taarifa ya Bodi ya Wakurugenzi. 8.2 Hesabu zilizokaguliwa kwa mwaka unaoishia tarehe 31 Disemba 2009. 8.3 Gawio kwa mwaka 2009.9. Kuidhinisha ada ya Wakurugenzi. 10. Kuteua Wakaguzi wa Hesabu.11. Kuthibitisha na Kuchagua Wajumbe wa Bodi ya Wakurugenzi. 12. Kujadili Mapendekezo kutoka kwa Wanahisa.13. Mengineyo kwa idhini ya Mwenyekiti. 14. Kupanga mahali na tarehe ya Mkutano ujao.15. Kufunga Mkutano.

MAELEZO1. Daftari la Wanahisa litafungwa kuanzia tarehe 26/06/2010 na litafunguliwa tena tarehe

28/06/2010.

2. Wanahisa wote watakaotaka kuchaguliwa kuwa Wakurugenzi wa Bodi wanatakiwa kutuma maombi yao kwa Katibu pamoja na wasifu (C.V), nakala 2 za picha (passport size) na nakala ya ukurasa wa mwisho wa hati ya kusafiria (passport) na zifike kabla ya Jumatatu tarehe 07/06/2010 saa 10 jioni. Waombaji wote watajulishwa kupokelewa kwa maombi yao na maelezo mengine kuhusu uchaguzi. Waombaji wanatakiwa kuzingatia sifa zinazotakiwa kama zilivyoainishwa kwenye Katiba ya Benki kifungu namba 106, 122 na kifungu namba 70 cha Sheria ya Mabenki na Taasisi za Fedha ambavyo vinabainisha vigezo vya mwombaji kuwa mkurugenzi; awe na elimu na uzoefu wa mambo ya uchumi, fedha au uhasibu, sheria au maendeleo vijijini, kilimo au ushirika pia asiwe mwanasiasa, asiwe mufilisi, asiwe chini ya umri wa miaka 21 au zaidi ya miaka70.

Taarifa ya Mkutano Mkuu wa 15wa Mwaka wa Wanahisa


3. Mapendekezo kutoka kwa wanahisa yatakayojadiliwa katika dondoo namba 12 yatumwe na yamfikie Katibu kabla ya Ijumaa tarehe 04/06/2010 saa 10.00 jioni.

4. Makabrasha ya Mkutano yatapatikana matawini na yanaweza kuchukuliwa kuanzia tarehe 17/06/2010, vinginevyo yatapatikana Arusha tarehe 23 hadi 26 Juni 2010.

5. Wanahisa wanaotaka kuhudhuria Mkutano watajigharamia usafiri na malazi.

TAARIFA YA SEMINA KWA WANAHISATaarifa inatolewa kwamba kutakuwa na semina kwa Wanahisa itakayolenga kutoa elimu kuhusu uwekezaji katika hisa, utaratibu wa kuuza na kununua hisa kutumia mtandao wa Benki ya CRDB na kulipa gawio kwa kutumia mitandao ya simu za mkononi. Semina hiyo itafanyika Ijumaa, tarehe 25/6/2010 katika Kituo cha Mikutano cha Kimataifa Arusha (AICC), Ukumbi wa Simba kuanzia saa 3.00 asubuhi.

KWA IDHINI YA BODI

J.B. RugamboKatibu wa Kampuni

04 Mei 2010


Notice is hereby given that the FIFTEENTH ANNUAL GENERAL MEETING of CRDB BANK PLC will be held on Saturday, 26th June 2010 at the Arusha International Conference Centre (AICC), Simba Hall, commencing at 9.00 a.m. and the following Agenda will be transacted:

1. To open the Meeting.2. To elect the Chairman and Vice Chairman.3. To adopt the agenda.4. To confirm the minutes of the Fourteenth General Annual Meeting. 5. To discuss the matters arising. 6. To confirm the minutes of the Extraordinary General Meeting 2008.7. To discuss the matters arising from the Extraordinary General Meeting 2008.8. To adopt the Directors’ Report and Audited Financial Statements for year 2009. 8.1. Directors’ Report. 8.2. Audited Financial statements for the year ended 31st December 2009. 8.3. Year 2009 Dividend.9. To approve the Directors‘ Remuneration.10. To appoint the Auditors.11. Confirmation of Appointment and Election of Members of the Board.12. To deliberate on proposals from Shareholders.13. Any other business with leave of the Chair.14. To set the place, date and venue of the next meeting.15. To close the meeting.

NOTE:1. The shareholders register will be closed from 26/06/2010 and will be opened on

28/06/2010.

2. All shareholders who wish to be elected as Board members must submit their applications with their curriculum vitae, two copies of passport size photographs and copies of the last page of their passports to reach the Secretary by 4.00 pm on Monday 07/06/2010. Noti�cation of receipt of application and other details will be sent to all applicants upon receipt of the applications. Applicants are reminded to observe the requirements of the CRDB Bank Articles of Association number 106, 122 and Article 70 of the Banking and Financial Institutions Act which, amongst other things, provides for qualifications that are required which include; to possess knowledge and experience of either economic or �nancial matters or accounting or legal expertise or rural development, agriculture or co-operatives, also he/she should not be a politician, bankrupt, or under 21 years of age, seventy or more years of age.

Notice of the 15th Annual General Meeting


3. All proposals to be discussed under agenda No. 12 must be received by the Secretary not later than 4.00 pm on Friday, 04/06/2010.

4. Papers for the meeting may be collected from CRDB Bank Branches with effect from 17/06/2010 and will also be available in Arusha from 23rd to 26th June 2010.

5. Costs for transportation and accommodation will be borne by shareholders themselves.

NOTICE OF A SEMINAR FOR SHAREHOLDERSNotice is hereby given that there will be an educational seminar on investing in shares and other securities & return on investment; transfer of shares using CRDB Bank branch network and payment of dividend by use of Telecommunication Companies’ services (ZAP & M-PESA) on 25/06/2010 starting at 9.00 a.m. at the Arusha International Conference Centre (AICC), Simba Hall.


J. B. RugamboCompany Secretary

4th May 2010


Manyara

Dar es SalaamPwani

Ufunguo/Key:

Tawi/BranchSACCOS

AzikiweAzikiwe PremierHollanda HouseKijitonyamaLumumbaMbagalaMbezi BeachMlimani CityPugu RoadTowerUDSMVijanaWater FrontKariakooMabibo

MorogoroKilomberoMandelaMazimbuMzumbeSua

ArushaMapatoMeruUsa River

MusomaTarime

BukobaKaragwe

IringaMkwawaNjombe

Sumbawanga

Kigoma

Singida

Lindi

Mtwara

Tabora TangaKorogwe

ShinyangaKahama

DodomaUDOM

MbeyaMbozi

SongeaMbinga

Moshi HaiTPCMarangu

MwanzaBugandoNyerereGeitaNyanza

Mtandao wa HudumaService Points

Zanzibar


Taarifa za KampuniCompany information

REGISTERED OFFICE ANDPRINCIPAL PLACE OF BUSINESS

CRDB Bank Plc.O�ce Accommodation Scheme

4th floor – Azikiwe street P.O. Box 268,

Dar es Salaam

COMPANY SECRETARYMr. J. B. Rugambo

O�ce Accommodation Scheme4th floor – Azikiwe Street

P.O. Box 268, Dar es Salaam

AUDITORSDeloitte & Touche Audit Company

PPF Tower, 10th floorOhio/Garden Street,

Dar es Salaam

LEGAL ADVISORSADEPT Chambers

Peugeot House, 1st floor36 Ali Hassan Mwinyi Road

Dar es Salaam

TAX ADVISORSDeloitte & Touche Audit Company

PPF Tower, 10th floorOhio/Garden Street,

P.O. Box 559,Dar es Salaam

MAIN BANKERSBank of Tanzania10 MiramboP.O. Box 2939Dar es Salaam Tanzania

Citibank, N.A.112, Wall Street,16th floor Zone 4,NEW YORK NY 10043USA

Deutsche Bank AG London6 Bishops GateLONDON EC 2N 4DAUNITED KINGDOM

Lloyds TSB Bank PlcOverseas Division,P.O. Box 196 Eastcheap,LONDON EC 3P 3ABUNITED KINGDOM

Danske Bank,12 Halmene Kanal,DK- 1092 Copenhagen K,DENMARK

NordeaS-10571STOCKHOLMSWEDEN

DZ Bank,Postfach 2628D-6000 Frankfurt 1GERMANY

Tunajali maendeleo yabiashara yako...Tunajali maendeleo yabiashara yako...

Inakufikia popoteTanzania...

Benki ya CRDB inakuletea huduma za kibenki hadi vijijini, mijini na jirani walipo wateja

wake kwa kupitia matawi yanayotembea “Branch on Wheels”.

Matawi yanayotembea yanakupa huduma zote za kibenki zikiwemo huduma za ATM.

Fungua akaunti yako leo, ufurahie huduma zetu!

CRDB Mobile Branch

crdb bank annual report-2009

Documents

Transcript of crdb bank annual report-2009