Tanzania | DSE

CRDB and NMB posted a collective profit growth of 53% on an annual basis, to a collective total profit of TZS 580bln. Grown profits for both banks resulted from increased interest and non-interest income as they collectively grew their loan portfolios by 31% to TZS 11.85trn, somewhat 43% of the total national banking loan portfolio. The growth is on the back of accommodative measures implemented by the central bank, which have facilitated an aggregate credit growth of 20% to the private sector by July 2022, the speediest expansion in the last seven years.

Historically, listed equities have been more than 80% of TICL’s investment holdings. Since 2018 the company began to diversify away into Treasury bonds, after a series of sluggish performances in the equities market. Until 2021, the equity portfolio had dropped to 54% of the total investment holdings, while Treasury bond holdings rose to about 45% of total holdings.

Dar es Salaam All Shares Index (DSEI) closed at TZS 1,880.23, an increase of 0.68% from TZS 1,867.98 last month. While, domestic capitalization decreased to TZS 10,170.69 billion from last month TZS 10,213.68 Billion, a decrease of 0.42%, the bourse total market capitalization increased to TZS 15,670.15 Billion from last month TZS 15,567.95 Billion, a change of 0.66%. The decrease in domestic market capitalization was greatly contributed by the decrease of SWIS share prices from TZS 1,840 to TZS 1,660, MBP from TZS 445 to TZS 420 and DCB from TZS 170 to TZS 155.

We issue a BUY recommendation on CRDB Bank (CRDB) based on a one-year target price of TZS 486, offering a 38% upside potential from its closing price of TZS 400 on 22nd August 2022.

Dar es Salaam Stock Exchange - Half Year Market Report - June 2022 : Tanzania's macroeconomic overview (GDP, Inflation), Banking Sector Overview, Capital Market ...

Notwithstanding the price improvements, the equities turnover generated in May was a few bps shy of April turnover. The market in May had generated TZS 13.79Bln ($5.97Mln) from 22.77million shares, this is 16% lower than TZS 16.48Bln ($7.13Mln) hat was generated in April, although the number of shares traded in May has surpassed the 20 million shares that traded in April by 9%.