Diamond Trust Bank (DTB) reported an 11.5% increase in after-tax profits for the first half of 2024, reaching Ksh 4.9 billion. This growth was primarily driven by a 15.1% rise in non-funded income to Ksh 6.4 billion and an 8.3% increase in net interest income to Ksh 14.2 billion.
- Earnings per share (EPS) for the period improved to Ksh 15.54, up from Ksh 14.31 in 1H23.
- Gross Non-performing Loans (NPLs) rose by 5.6% to Ksh 38.6 billion
- Net loans and advances declined by 4.7% to Ksh 267.9 billion
Net interest income saw an 8.3% rise, supported by a 17.9% growth in total interest income to Ksh 29.3 billion. However, this was partially offset by a 28.6% increase in total interest expenses, which amounted to Ksh 15.2 billion. The bank’s net interest margin (NIM) remained stable at 5.3%.
“DTB, which has traditionally been strong in key sectors such as trade, manufacturing, real estate and construction, has diversified and expanded its focus on new sectors, including agriculture, education, technology and public sector. This strategy has begun to bear fruit, with DTB growing its customer base to over 2 million customers across East Africa, growing by a significant 75% over the past year.” the Nairobi listed lender said in a statement.
Operating expenses, excluding provisions, climbed by 12.4% to Ksh 10.6 billion, driven by higher staff costs and other expenses. This led to a slight increase in the cost-to-income ratio to 51.6%. Meanwhile, gross non-performing loans (NPLs) rose by 5.6% to Ksh 38.6 billion, with the NPL ratio increasing to 12.6%.
DTB’s subsidiaries in Tanzania, Uganda, and Burundi contribution to pretax profits improved to 35%, up from 23% posted within the same period last year according to DTB Group CEO Mrs Nasim Devji.
On the balance sheet, net loans and advances declined by 4.7% to Ksh 267.9 billion, while customer deposits grew by 3.3% to Ksh 431.9 billion. Despite this, DTB’s core capital ratio decreased by 90 basis points to 17.6%, still comfortably above the statutory minimum of 10.5%.
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