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DTB reported a 55% jump in net profit to Sh6 billion
Monday, March 27, 2023
DTB Chairman Linus Gitahi (right) and CEO Nasim Devji during the launch of the lender’s 67th branch at Sarit Centre, Westlands. file image | NMG
Diamond Trust Bank (DTB) reported a 55 per cent jump in net income to Sh6 billion in the year to December, buoyed by higher interest and non-interest income.
The bank declared a dividend of Sh5 per share, up from the Sh3 per share that was paid last year.
The new dividend, amounting to Sh1.39 billion, will be distributed around June 15th to shareholders who will be of record from May 12th.
DTB’s total interest income rose 18.1 percent to Sh40 billion, while unfunded income, including fees and commissions, rose 45 percent to Sh9 billion.
Its loan book increased 15 percent to Sh253.6 billion, while investment in government debt securities rose 7.1 percent to Sh133.1 billion.
In recent months, banks have benefited from higher interest rates on new auctions of Treasury bills and bonds. However, the increased rates created paper losses in their portfolio of fixed-income securities that were purchased earlier when rates were relatively low.
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Recent sales of long-term bonds have seen investors get rates above 14 percent.
DTB’s interest expense increased by 23.4 per cent to Sh17.1 billion with customer deposits growing by 16.9 per cent to Sh387.5 billion.
Operating expenses rose 11 per cent to Sh22 billion, with personnel costs among the most inflated items. The bank reduced its provisions for bad debts by Sh416.3 million to Sh7.1 billion even as total non-performing loans expanded by Sh2.1 billion to Sh32.2 billion.
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