Dar es Salaam, Tanzania – CRDB Bank Plc has made history by surpassing the 1,000/- share price mark on the Dar es Salaam Stock Exchange (DSE) for the first time—representing a tenfold increase from its price just six years ago.
To many investors, this milestone is more than just psychological; it signals a strategic triumph rooted in sound execution, resilience, and long-term 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 at Zan Securities.
From 100/- to 1,000/-: The Numbers Behind the Surge
In 2019, CRDB’s share traded at 100/-, with a market capitalisation of TZS 261.18 billion and an annual profit of TZS 120.1 billion.
Fast forward to today, the share price stands at 1,000/-, up from 670/- in January, propelling the bank’s market cap to TZS 2.611 trillion. The bank also reported a 2024 profit of TZS 551.8 billion—an almost fivefold increase.
So far in 2025 alone, the stock has gained 49% in price appreciation and delivered a total return of 58.9%, including dividends.
“This performance reflects not short-term volatility, but rather sustained consistency driven by strong operational results,” Mr. Lubeja noted.
Consistent Growth Driven by Fundamentals
Between 2020 and 2024, CRDB posted an impressive 30% compound annual growth rate (CAGR) in profits. Last year alone, it achieved:
- Return on Equity (ROE): 27.7%
- Return on Assets (ROA): 5.1%
- Cost-to-Income Ratio: Improved to 45.9% from 49.5%
These gains are largely attributed to the bank’s digital transformation, cost efficiency, and expansion scale.
CRDB’s diversification strategy is also bearing fruit, with nearly one-third of its income now derived from non-interest sources such as fees, commissions, and foreign exchange—a vital buffer in fluctuating interest rate environments.
While many regional peers have struggled with asset quality issues and shrinking loan books, CRDB has grown both loans and deposits by 22–23%, maintained a low non-performing loan (NPL) ratio of 2.9%, and expanded its 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% NPL ratio and higher cost inefficiencies,” Mr. Lubeja added.
CRDB Dominates Market Activity
Godfrey Kamugisha, Head of Business Development and Customer Services at Alpha Capital, observed that for the week ending last Friday, CRDB commanded 65% of total equity turnover on the DSE, amounting to TZS 12.15 billion.
“This level of flow dominance in a single counter is noteworthy but not rare in our capital markets,” said Mr. Kamugisha, in the firm’s weekly market digest.
“CRDB not only led in value traded but also accounted for 4,233 out of 5,933 total deals—over 71% of all market transactions.”
Sector-Wide Momentum and Outlook
CRDB’s performance mirrors broader momentum in Tanzania’s banking industry, which posted a 36% increase in profits last year. Total deposits surpassed TZS 42.34 trillion, and credit quality showed marked improvement. Regulatory reforms and the continued push for digital and agency banking have further strengthened operational efficiencies across the sector.
Still, some market analysts urge caution. Mr. Kamugisha noted that while CRDB remains a fundamentally sound long-term investment, the sharp price rally past the 1,000/- mark may have been driven more by market sentiment than intrinsic valuation, pending release of the half-year results.
CRDB and NMB Bank together accounted for over 50% of the industry’s total profits in 2024, with NMB posting a TZS 640 billion profit and a 25% ROE.
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Source: Daily News (Tanzania)
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