Tanzanian businessman Hans Macha has scored a million-dollar profit from his position in leading financial services organization CRDB Bank, as investors digest the bank’s 2021 financial statement.
Through its extensive asset portfolio and various financial products, CRDB Bank, a Tanzania-based institution with a substantial operating footprint in Burundi, ranks as Tanzania’s largest commercial bank in terms of assets, ahead of NMB Bank Plc.
Macha, who has a fractional 1.25-percent ownership position in the bank, has seen the market value of his stake rise by Tsh2.46 billion ($1.06 million) since the year began.
The million-dollar increase in his share is a result of investors’ reactions to the lender’s strong financial performance at the end of 2021, which saw shares rise by double digits as market participants maintained purchasing interest in the bank’s shares on the Dar es Salaam Stock Exchange.
Profit at the end of 2021 climbed by 63.7 percent from Tsh236 billion ($102.1 million) in 2020 to Tsh387 billion ($167.3 million), according to figures in the financial report.
The group’s cost-cutting efforts, as well as an 11.2-percent and a 24.8-percent rise in non-interest income and net interest income, aided the bank’s significant profits growth, which was a consequence of a base impact given the bank’s underperformance in 2020.
Shares in CRDB Bank have climbed from a price of Tsh280 ($0.121) per share on Dec. 31 to a price of Tsh355 ($0.154) at the time of writing this report, representing a total gain of 26.8 percent for shareholders.
The market value of Macha’s stake has grown from Tsh9.17 billion ($3.96 million) at the start of the year to Tsh11.63 billion ($5.02 million) at the time of writing as a consequence of the price gain.
Since the beginning of the year, the multimillionaire businessman has made a total profit of Tsh2.46 billion ($1.06 million).
Tanzanian multimillionaire brothers Aunali and Sajjad Rajabali have likewise earned a total gain of Tsh5 billion ($2.1 million) from their combined interest in CRDB Bank, similar to Hans Macha.