CRDB hits 1,000/- mark, investors cheer

DAR ES SALAAM: CRDB Bank Plc has made history as its share price crossed the 1,000/- mark on the Dar es Salaam Stock Exchange (DSE) for the first time—a tenfold increase from its level six years ago.

To many investors, this isn’t merely a psychological benchmark; it is a strategic signal of long-term execution, resilience and vision.

“This is not just a psychological mark. It’s a strategic landmark that reflects six years of solid fundamentals, investor trust and Tanzania’s maturing banking sector,” said Isaac Lubeja, Advisory and Research Manager of Zan Securities.

The numbers tell a compelling story. In 2019, CRDB’s share price stood at 100/-, with a market cap of 261.18bn/- and an annual profit of 120.1bn/-.

Today, the bank’s share trades at 1,000/- from 670/- in January, lifting its market capitalisation to 2.611tri/- and reporting last year profit of 551.8bn/-, an almost fivefold increase.

Since the beginning of this year alone, the share has gained 49 per cent in price appreciation and delivered a total return of 58.9 per cent when factoring in dividends, he said.

“This performance reflects not short-term volatility, but rather sustained consistency driven by strong operational results,” Mr Lubeja said. “CRDB’s growth path resembles a calculated ascent, underpinned by rising profitability and growing investor confidence”.

ALSO READ: Mwanza targets bigger GDP share

Between 2020 and last year, CRDB posted an extraordinary 30 per cent compound annual growth rate in profits. Last year, the bank achieved a Return on Equity of 27.7 per cent and a Return on Assets of 5.1 per cent, while its cost-to-income ratio improved to 45.9 per cent from 49.5 per cent, reflecting gains from its digital transformation and scale.

Mr Lubeja said CRDB’s strategy to diversify income sources is also bearing fruit, with around a third of its income now derived from noninterest streams such as fees, commissions and foreign exchange—an important cushion in volatile interest rate environments.

While many regional peers have faced asset quality pressures or shrinking loan books, CRDB has grown its loans and deposits by 22–23 per cent, maintained a low non-performing loan ratio of 2.9 per cent and expanded operations in Burundi and the Democratic Republic of Congo.

“This puts the bank ahead of competitors like Kenya’s KCB Group, which despite strong profit growth, continues to contend with a 19.8 per cent NPL ratio and higher cost inefficiencies,” he said.

Alpha Capital Head of Business Development and Customer Services, Godfrey Kamugisha said for the week ending last Friday the DSE turnover was heavily concentrated around two counters, with CRDB commanding an extraordinary 65 per cent of all equity turnover, amounting to 12.15bn/-.

“This level of flow dominance in a single counter is noteworthy but not rare in our capital markets,” Mr Kamugisha said on the firm weekly financial markets digest adding that “CRDB not only led in value traded but also outpaced all others in trade count”, with 4,233 out of 5,933 total deals, over 71 per cent of the market’s total transactions. CRDB’s ascent also mirrors broader momentum within Tanzania’s banking sector.

Last year, the industry recorded a 36 per cent profit increase, as deposits surged past 42.34tri/- and credit quality improved. Supported by regulatory reforms and a push for digital and agency banking, banks have been able to extend reach while cutting costs.

The upward price trajec¬tory in equities, particularly in CRDB, Mr Kamugisha said, is currently decoupled from hard financial fundamentals, at least until first half results are released.

“While the bank remains a fundamentally sound longterm investment, the recent parabolic move above the 1,000/- psychological threshold may indicate an overextension driven more by sentiment than intrinsic valuation,” he said.

CRDB and NMB together accounted for over half of the industry’s profits last year, with NMB also delivering a strong performance with a 640bn/- profit and 25 per cent ROE.