Diamond Trust Bank Group has announced its financial results for the full year 2023, with after-tax profits growing by 14.7% to KES 7.8 billion. There was a notable surge in both non-funded income and net interest income, which increased by 34.3% and 20.5% year-on-year respectively.
The bank reported a substantial growth in interest income to KES 53.3 billion, while interest expenses rose to KES 25.7 billion. Non-funded income saw a notable boost, primarily driven by a substantial increase in net income from forex dealings, fees, and commissions on loans, along with other fees and commissions.
However, operating expenses (excluding loan loss provisions) also saw a notable increase, rising by 21.2% to KES 20.5 billion. This was primarily due to a significant surge in staff costs and other operating expenses.
The bank witnessed a considerable surge in loan loss provisions, amounting to KES 10.3 billion, leading to a slight decrease in the cost of risk to 3.3%. Despite this, gross non-performing loans increased by 35.4% year-on-year, resulting in an NPL ratio of 12.4%.
On the balance sheet side, customer loans and advances increased by 21.6%, while investment securities rose by 7.1%. Customer deposits also saw an uptick of 25.4%.
The board has proposed a first and final dividend of KES 6.00 per share, from KES 5.00 in the previous fiscal year. If approved, this dividend will be paid on or about June 28, 2024, to shareholders on the register as of May 24, 2024.
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