Nairobi Securities Exchange listed bank, Diamond Trust Bank recently released it’s full year results for the financial period ending 31 December 2016. Here is a brief analysis of the same:
Income
Total interest income was up by 30.93% to Ksh 33.81 billion in 2016 compared to Ksh 25.83 billion in 2015. The increase in interest income was largely due to a Ksh 5.38 (126%) billion increase in interest income from government securities and a Ksh 2.57 billion increase in loans and advances.
Net interest income was up by 27.62% to Ksh 19.39 billion in 2016 compared to Ksh 15.19 billion in 2015. Interest paid out on customer deposits increased from Ksh 9.67 billion in 2015 to Ksh 12.94 billion in 2016 contributing largely to the increase in interest expense.
Total non-interest income increased by 7.26% from Ksh 4.73 billion in 2015 to Ksh 5.07 billion in 2016. The moderate increase was due to increased income from fees and commissions arising from loans and advances and other fee income. Income from Forex trading was relatively flat dropping marginally by less than one percentage point.
Operating Expenses
Total operating expenses were up by 30.1% from Ksh 10.35 billion in 2015 to Ksh 13.46 billion in 2016. The increase in operating expenses was largely contributed by a 96% sharp increase in loan loss provisions from Ksh 2.18 billion in 2015 to Ksh 4.27 billion in 2016.
Profits
The group recorded a 14.96% increase in profits before tax to stand at Ksh 10.995 billion in 2016 compared to Ksh 9.565 billion in 2015. Profits after tax increased by 17.1% to Ksh 7.728 billion in 2016 compared to Ksh 6.599 billion in 2015.
Dividends
The Directors of the bank have recommended a dividend of Ksh 2.60 per share with shareholders expecting to receive their dividend payments as from 26 May 2017.
Share Price
On Tuesday, DTB closed the trading session at 107.00, this is 4.90% above its 52-week low of 102.00, set on Mar 14, 2017. The counter is roughly down by 9.32% year-to-date.
Shareholders
Diamond Trust Bank is majority owned by The Aga Khan Fund for Economic Development.
Notable Institutional shareholders in the bank are:
- Norges Bank Investment Management
- Blakeney LLP
- Parametric Portfolio Associates
- Stanlib Asset Management
Mergers & Acquisitions
On Tuesday, the bank announced its intention to acquire Habib Bank Kenya Limited. DTB will create an additional 13,281,105 ordinary new shares at a price of Ksh. 137.39 per share in order to accommodate Habib Bank who is already a shareholder in DTB. Existing DTB shareholders will be diluted by 4.75% from this transaction which is expected to be completed by July 2017.
Download: Diamond Trust Bank(K) Ltd- Audited Group Results for the Year Ended 31-Dec-2016
Sources: (Diamond Trust Bank, Kenyan Wall Street, FT, Central Bank of Kenya, NSE)
