DTB’s full year profit grows to Ksh. 6.7 billion


DTB's full year profit grows to Ksh. 6.7 billion
File image of Diamond Trust Bank (DTB). PHOTO| COURTESY

In Summary

  • DTB's marginal surge in profitability is largely attributable to increased lending to government where the bank’s investment in the State’s fixed-income instruments appreciated by 11.1 percent to Ksh.13 billion shillings from Ksh.11.7 billion.
  • The NSE listed lender is the fourth tier one bank to announce its full year earnings for 2018 to include announcements by Stanbic Bank, KCB and Barclays Bank where the entities have in total grown their earnings to Ksh.42.3 billion across the 12 months to December 31, 2018

Diamond Trust Bank (DTB) has announced a 4 percent growth in profits after taxation for the period ending December 31, 2018 from the Ksh.6.4 billion recorded in 2017 to Ksh.6.7 billion.

The lender’s marginal surge in profitability is largely attributable to increased lending to government where the bank’s investment in the State’s fixed-income instruments appreciated by 11.1 percent to Ksh.13 billion from Ksh.11.7 billion.

DTB further topped its operational efficiencies and loan recovery efforts to bring down its total cost of operations and non-performing loans (NPLs) to Ksh.14.5 billion and Ksh 12.1 billion respectively.

The growth in government investment and efficiency was enough to offset a flat growth in customer deposits which peaked at Ksh.13.5 billion and a slight dip in the group’s loan book which sunk by Ksh.700 million to Ksh.22 billion.

DTB Managing Director Nasim Devji expects the bank’s strong anchorage in small and medium enterprises (SMEs) to keep the group’s growth on a positive curve to go hand-in-hand with the lender’s branch expansion strategy.

“This performance is anchored on the Group’s strong market positioning and long history in the East African region serving these customers. A solid shareholder base also augments our inherent strength,” said Ms Devji.

The Nairobi Securities Exchange (NSE) listed lender is the fourth tier-one bank to announce its full year earnings for 2018 to include announcements by Stanbic Bank, KCB and Barclays Bank where the entities have in total grown their earnings to Ksh.42.3 billion across the 12 months to December 31, 2018.

 

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