Tanzania: Crdb Announces Four-Year High Dividend

By Abduel Elinaza

CRDB Bank has recommended a four-year high dividend which is over hundred per cent rise and gives investors 'a very impressive' return.

The bank announced a 17/- dividend for last year which was similar to amount paid four years ago

2016, but up 112.5 per cent compared to 8/- of 2018.

Zan Securities Chief Executive Officer Raphael Masumbuko told Daily News that the dividend gives investors "a very impressive return" of 12 per cent considering that returns on other assets such as government bonds continue to decline.

"We expect the bank to post an impressive performance in the first quarter and therefore its price should continue to climb," Mr Masumbuko said reacting to share increase on Tuesday.

On the share price he said they expected CRDB shares to bounce back in price since the shares are selling cheaper compared to its close competitors with far less impressive financial performance.

"The bank posted a very strong annual performance in 2019, with profit increasing by 57per cent," the CEO said.

The bank share rebounded to 140/- after trading for 135/- for almost a week before the Easter.

CRDB pre-tax profit rose to 174,68bn/-last year from 99.12bn/- in 2018, while nonperforming loan ratio dropped to 5.5 per cent from 8.5per cent. The industry benchmark is 5.0 per cent.

Orbit Securities said in its weekly synopsis report that the bank remained the most liquid during this coronavirus uncertainty.

"The bank remains the most liquid counter on the market during this uncertain period," Orbit said.

Dar es Salaam Stock Exchange (DSE) Tuesday report showed that CRDB had 209,010 shares traded at weighted average price of 140 per share in 11 deals.

According to CRDB dividend declaration statement, the board recommended a dividend of 17/- per issued and fully paid up share in line with the lender's dividend policy subject to obtaining approval from the Annual General Meeting of shareholders to be held mid-May.