Diamond Trust Bank Kenya HY16 Pre-Tax Profit Up by 12.6% to 5.26 bln shillings

Diamond Trust Bank Kenya Limited, a regional East African bank in its latest half year 2016 results saw the lender boosted by interest income which increased by 42.9% year on year to Ksh 16.7 billion compared to Ksh 11.7 billion in a similar period the previous year. The surge in interest income was triggered by a 28.5% increase in interest income from loans and advances and a double in interest income from government securities.

Total Non-Interest Income increased by 6% from Ksh 2.4 billion to Ksh 2.5 billion.

Operating Expenses increased by 49% to Ksh 6.8 billion which was mainly driven by an increase in loan loss provisions to Ksh 2.2 billion compared to 626 million in the previous period.

Profit before tax stood at Ksh 5.26 billion vs Ksh 4.67 billion. This represents a 12.6% increase.

Profits after tax increased by 11.2% from Ksh 3.25 billion in H12015 to Ksh 3.62 billion in H12016.

Download: Diamond Trust Bank Kenya Limited – Unaudited Group Results for the period ended 30th June 2016.pdf

The share price plummeted by 11.95% in Thursday’s session after release of the results touching a low of Ksh 140/share. This huge single day fall was due to market a reaction after a bill capping Kenyan interest rate at 4 percentage points above the Central Bank Rate was passed into law.

DTB has lost over 15% value in share price since the year began (see chart below)

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Sources: (Diamond Trust Bank, Kenyan WallStreet, Financial Times)