DTB posts Sh6.2 billion profit, up 21 percent in nine months
Diamond Trust Bank (DTB) CEO Nasim Devji.
Diamond Trust Bank (DTB) has announced a 21 percent increase in its net profit for the nine months to September.
This was as earnings from interest on loans and government securities as well as earnings from foreign exchange trading grew sharply.
The Nairobi Securities Exchange (NSE) listed lender has posted Sh6.2 billion profit after tax for the nine months, an increase from Sh5.1 billion during the same period last year.
The bank’s earnings were propelled by an increase in net interest income from Sh14.7 billion to Sh16.8 billion with loans and Treasury bills and bonds earning handsome returns.
Total non-interest income from foreign exchange trading, dividends from investments, fees, and commissions on loans went up to Sh6.8 billion up from Sh4.7 billion.
DTB’s assets also crossed the half-a-trillion-shilling mark for the first time increasing to Sh507 billion from Sh434 billion largely propelled by increased lending as net loans went up to Sh243.6 billion from Sh205.5 billion last year.
However, the bank is still struggling with growing non-performing loans (NPLs), with gross bad loans increasing sharply to Sh32.9 billion up from Sh25.7 billion.
The lender also increased loan loss provisions from Sh9.3 billion to Sh12.9 billion due to the heightened risk of loan defaults amid a tough economy.
This is even as bad loans in the banking industry have started to reduce after banks embarked on aggressive recoveries of their loans including property auctions.
Central Bank of Kenya (CBK) data shows that non-performing loans shrank by Sh13.2 billion between August and September to Sh491.8 billion.
It was the largest monthly margin drop in 15 years.
Banks have recorded a 28.5 percent increase in profit before tax for the nine months to September with the growth supported by the significant growth in interest and non-funded income as well as the rollout of cost-cutting measures.
