Tanzanian multimillionaire Rajabali brothers to pocket $635,024 CRDB Bank dividend

Tanzanian multimillionaire brothers Aunali and Sajjad Rajabali will earn $635,024 (TZS 1.47 billion) in dividends from their stake in the Tanzanian CRDB Bank.

CRDB Bank Plc is the largest wholly-owned private universal bank in Tanzania, with a significant operational footprint in Burundi through its robust portfolio and tailored products.

The leading Tanzanian financial services group with a market capitalization of about $332 million (TZS 770 billion) has seen its total assets, including customer loans, increase to $3.1 billion (TZS7.2 trillion).

Total deposits as of Dec. 21, 2020 were put at about $2.3 billion (TZS5.4 trillion).

The bank has been able to weather the storm in its operating environment as it declared a net profit of $71.3 million (TZS165.2 billion) in 2020, compared to $51.8 million (TZS120 billion) in 2019.

The resilient performance led the company’s board of directors to recommend a dividend of $0.0095 (TZS22) per share, which translates to $24.78 million (TZS57.46 billion) in total dividend payout.

The dividend recommended by the CRDB Bank board reflects a dividend yield of about 7.46 percent.

The Rajabali brothers are the largest individual shareholders in CRDB Bank with an ownership stake of about 2.6 percent.

With their joint stake of 66,921,350 units of the bank’s total issued ordinary shares, Aunali and Sajjad are on course to earn a dividend of $0.0095 (TSZ22) per share on their 66,921,350 issued shares, or $635,024 (TZS1.47 billion).

In line with the postponement of CRDB’s annual general meeting, the Rajabalis will receive their dividend on June 30 after the meeting is held on June 27.

Good times are here for the Rajabali brothers

The Rajabali brothers have been performing well as of late. A recent report revealed that their stake in CRDB Bank has climbed 35 percent in value in under two months.

In reaction to the increase in the CRDB share price on the Dar es Salaam Stock Exchange, the market value of their shares is estimated to be worth about $8.5 million (TZS19.7 billion).