Saturday, June 8, 2024

DTB reports an impressive 55% jump in net profit to Sh6 billion, declares increased dividend of Sh5 per share

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NAIROBI | Diamond Trust Bank (DTB) had an impressive financial performance in last year, reporting a 55% increase in net income to Sh6 billion. The bank’s higher interest and non-interest income, including fees and commissions, helped to drive its growth. Total interest income increased by 18.1% to Sh40 billion, while non-funded income rose by 45% to Sh9 billion.

DTB’s loan book also expanded by 15% to Sh253.6 billion, reflecting the bank’s successful efforts to expand its loan portfolio. Meanwhile, investment in government debt securities grew by 7.1% to Sh133.1 billion, indicating the bank’s continued confidence in the country’s economic outlook.

Despite rising interest rates and inflation, DTB’s financial performance remained strong. The bank declared a dividend of Sh5 per share, which was an increase from the Sh3 per share paid the previous year. This is positive news for shareholders, as the dividend payout will amount to Sh1.39 billion and will be distributed around June 15 to shareholders on record as of May 12.

However, DTB also faced some challenges in its financial performance. The bank saw an increase of 23.4% in its interest expenses, which was driven by a 16.9% increase in customer deposits to Sh387.5 billion.

Additionally, operating expenses rose by 11% to Sh22 billion, with staff costs being a significant contributor. Despite this, the bank was able to reduce 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.

Overall, DTB’s strong financial performance is a testament to its sound management, effective cost control, and strategic investments. This bodes well for the bank’s future growth and profitability, as well as for the banking industry as a whole in Kenya.

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