DTB posts 55pc jump in net profit to Sh6bn


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 PHOTO | NMG

Diamond Trust Bank (DTB) reported a 55 percent jump in net income to Sh6 billion for the year ended December, helped by higher interest and non-interest income.

The bank declared a dividend of Sh5 per share, up from the Sh3 per share paid last year.

The new dividend, amounting to Sh1.39 billion, will be distributed around June 15 to shareholders who will be on record as of May 12.

DTB’s total interest income rose 18.1 percent to Sh40 billion, while non-funded income, including fees and commissions rallied 45 percent to Sh9 billion.

Its loan book expanded 15 percent to Sh253.6 billion, while investment in government debt securities went up 7.1 percent to Sh133.1 billion.

Banks have in recent months benefitted from rising rates on new auctions of T-bills and bonds. The rising rates have, however, generated paper losses on their portfolio of the fixed income securities bought earlier when rates were relatively lower.

Read: Banks’ Sh224bn record profits signal bonus, dividends boom

Recent sales of long term bonds has seen investors get rates topping the 14 percent mark.

DTB’s interest expenses increased 23.4 percent to Sh17.1 billion as customer deposits grew 16.9 percent to Sh387.5 billion.

Operating expenses rose 11 percent to Sh22 billion, with staff costs among the items that swelled the most. The bank reduced its provisions for bad debt by Sh416.3 million to Sh7.1 billion even as gross non-performing loans expanded by Sh2.1 billion to Sh32.2 billion.

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Beryl Onyango

Beryl Onyango is a CPA and economics degree holder who has dedicated her career to helping others navigate the complex world of finance. Beryl has spent the past 3 years working as a finance specialist in a fintech company and has 6 years of experience in finance, working with a diverse range of clients and industries. Beryl's expertise lies in budgeting, saving, investing, and retirement planning, but she also has a deep understanding of various other areas of finance. She is interested in financial technology and how it changes how we manage our finances. As a finance writer, Beryl has been sharing her insights and knowledge through her writing, covering various finance and personal finance topics. Her goal is to educate and empower individuals to take control of their finances and achieve their financial goals. In addition to her professional experience, Beryl is a lifelong learner, always seeking to expand her knowledge and stay up-to-date with the latest developments in finance. She is also a strong communicator, able to explain complex financial concepts in a clear and easy-to-understand manner. Beryl believes that financial literacy is the key to achieving financial success, and she is dedicated to helping others achieve their financial goals.

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