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The stake of multimillionaire brothers Aunali and Sajjad Rajabali in Tanzania’s leading financial services group, CRDB Bank Plc, has increased by $1.88 million (TZS4.35 billion).
CRDB Bank is the largest wholly-owned private financial services group in Tanzania, with an operational footprint in Burundi.
As of press time, 2:50 pm (UTC+1) today, June 30, shares in the bank traded at $0.127 (TZS295.00), or 51.3-percent higher than the opening market price for 2021 when shares were valued at $0.084 (TZS195.00).
Recently, the share price has risen from $0.099 (TZS230.00) on April 1 to $0.127 (TZS295.00) on June 30, accruing noteworthy gains for shareholders like the Rajabali brothers.
At the current price, the company’s market capitalization is $332.37 million (TZS19.74 billion), or $73.23 million higher than its valuation 61 days ago.
The recent surge in the share price on the Dar es Salaam Stock Exchange can be attributed to the company’s excellent financial results for Q1 2021.
In the quarter, the bank posted 32.4-percent growth in net income, up from $13.97 million (TZS32.41 billion) in Q1 2020 to $18.50 million (TZS42.91 billion) in Q1 2021.
The impressive performance took place on the back of a 9.6-percent growth in interest income, triggered by East Africa’s recovering economy post-COVID-19. This spiked investors’ buying interest in the shares, leading to a 28.3-percent surge in the company’s share price between April 30 and June 30.
The Rajabali brothers, who earned a dividend of $635,024 (TZS1.47 billion), have seen their stake surge by 28.3 percent since April 30.
The value of their stake in CRDB Bank has increased from $6.64 million (TZS15.40 billion) to $8.52 million (TZS19.74 billion) between April 30 and June 30.
This translates to a gain of $1.88 million (TZS4.35 billion) for the brothers in 61 days.
