DTB profit rises to Sh1.96bn on higher loan income

Diamond Trust Bank (DTB) #ticker:DTK has posted a 9.3 per cent growth in net profit in the first quarter ended March, helped largely by higher loans income from government lending and a growth of non-funded revenue amid lower operating costs.

The bank’s net earnings in the review period stood at Sh1.96 billion compared with Sh1.80 billion a year earlier.

Its non-interest income grew 15.33 per cent to Sh1.53 billion in the period from Sh1.33 billion a year earlier, lifted by an increase in earnings from fees and commissions.

Total operating expenses reduced by 9.67 per cent to Sh3.15 billion from Sh3.48 billion as the bank cut loan loss provisioning by 61.46 per cent to Sh268.4 million from Sh696.5 million a year earlier.

The bank’s non-performing loans dropped by Sh843.6 million to Sh12.25 billion, from Sh13.2 billion a year earlier.

During the period, income from government securities rose 2.45 per cent to Sh3.14 billion as the group’s investment in Treasury bills and Treasury bonds grew to Sh124 billion at the end of March compared to Sh118 billion at the same time last year.

DTB’s total interest income dropped by 5.08 per cent to Sh8.14 billion as interest from loans and advances dropped by 10.08 per cent to Sh4.9 billion from Sh5.45 billion.

“Year on year, the asset base for the group continues to grow with total assets closing at Sh370 billion at the end of the first quarter of this year,” said DTB’s group chief executive, Nasim Devji.

“Our focus on the SME sector, in particular, and commitment to enhancing access and convenience for customers through our branch and agency banking networks and alternate, digitally- anchored channels has helped support our growth.”

The lender’s shareholders recently approved the appointment of Linus Gitahi, 56, as the board chairman at the annual general meeting (AGM) held in Nairobi following the retirement of Abdul Samji who had served in the position for nine years.