NMB achieves historic 2.6tri/- market valuation

DAR ES SALAAM: NMB Bank, the most profitable bank in the country, has made history by becoming the first bank in the country to surpass a one-billion-dollar market valuation.

Data show that merely four years ago, NMB’s market capitalisation stood at 1.4tri/- where today it has doubled to over 2.6tri/- (1.0 billion US dollars)—the bank has been on the winning streak.

This market valuation for the NMB suggests that the total market value of the bank, as determined by its stock price and the number of outstanding shares, has exceeded 1.0 billion US dollars.

The significant milestone underscores the bank’s strong financial performance and solidifies its position as the most profitable bank in the country.

Additionally, the achievement not only highlights the bank’s dominance locally but also positions it for continued expansion and influence in the East African region.

NMB Chief Executive Officer Ms Ruth Zaipuna, said last year was a remarkable year for the lender characterised by record financial and operational performance, strategic growth and meaningful contributions to country’s economic development.

“Our results reflect the strength of our business model…,” Ms Zaipuna said adding: “As we look ahead, we remain focused on driving innovation, expanding financial inclusion.”

Data show that merely four years ago, NMB’s market capitalisation stood at 1.4tri/- where today it has doubled to over 2.6tri/- (1.0 billion US dollars)—the bank has been on the winning streak.

This market valuation for the NMB suggests that the total market value of the bank, as determined by its stock price and the number of outstanding shares, has exceeded 1.0 billion US dollars.

Economically, according to some stock brokers, means the lender is a significant player in the local and potentially regional economy.

It shows that the bank’s operations, assets and revenue generation are substantial within the country banking sector.

The milestone firmly cements NMB’s status as the largest listed bank in Tanzania, the second-largest bank in East Africa and the sixthlargest company overall by market capitalisation.

“NMB’s consistent financial performance has also earned it a place among SubSaharan Africa’s 30 most valuable companies (excluding South Africa),” according to Capital Market Union CMU, Sub-Sahara Africa Top 30 Companies Report 2024. “What this means for our economy.

The billion-dollar era has begun and NMB is leading the charge,” said Creditinfo Tanzania, Business Intelligence Analyst, Imani Minja. He told the `Daily News’ yesterday that the bank has officially made history as first bank in the country to surpass a one-billion US dollars market evaluation.

The analyst said NMB’s stock prices has surged, as investor confidence increase, driven by consistent profit growth and rapid digital banking expansion. “

This success is more than just a corporate victory, it is a national economic boost,” Mr Minja said.

The bank reported a record 644bn/- in net profit, an increase from the 585bn/- in 2023 and a massive leap from the 436bn/- in 2022.

“As NMB continues breaking records, its influence on Tanzania’s financial sector and economic future will only grow,” he said.

Zan Securities Advisory and Research Manager Isaac Lubeja said the positive earnings announcements typically drive stock prices higher as investors adjust their valuations based on expected future dividends, making them more willing to buy at a premium.

“We anticipate continued upward momentum, particularly as the dividend declaration period approaches in May,” Mr Lubeja said.

Following NMB’s strong earnings report, the stock price rose by 4.46 per cent to close the last week at 5,850/- per share, pushing its market capitalisation to 2.925tri/- above the 1.0 billion mark in dollar terms.

NMB is the second-listed firm on the DSE with the highest valuation, after TBL, which commands a market cap of 3.216tri/-.

The third on the list is TBL’s counterpart in Kenya, EABL, with a market cap of 2.736tri/-, followed by KCB Bank with 2.435tri/-, both cross-listed from Kenya. CRDB ranks fourth with a market cap of 1.802tri/-.