Diamond Trust Bank Posts Sh1.96bn Q1 Profit

Diamond Trust Bank (DTB) has recorded a 9.3 percent rise in net profit in the first quarter ended March 2019. This was largely the result of an increase in non-funded income and growth in income from loans lent to the government as operating costs lowered.

In the period under review, the lender’s net earnings totaled Sh1.96 billion from Sh1.80 billion posted in 2018.

Due to growth in earnings from commissions and fees, non-interest income rose 15.33 percent to stand at Sh1.53 billion in the quarter as compared to Sh1.33 billion a year earlier.

The bank saw its total operating costs drop by 9.67 percent to Sh3.15 billion down from Sh3.48 billion following a reduction in loan loss provision by 61.46 percent to Sh268.4 million from Sh696.5 million from a similar period last year.

Diamond Trust Bank has posted a decrease in non-performing loans by Sh843.6 million from Sh13.2 billion last year to Sh12.25 billion this quarter.

Income from government securities grew 2.45 percent to Sh3.14 billion during the period under review. The group increased its investment in Treasury bills and Treasury bonds from Sh118 billion in 2018 to Sh124 billion at the end of March 2019.

However, the lender recorded a reduction in its total interest income by 5.08 percent to Sh8.14 billion following a decrease in interest from advances and loans by 10.08 percent from Sh5.45 billion to Sh4.9 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 Nasim Devji, DTB’s group chief executive.

“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.”

Linus Gitahi was recently approved as the board chairman by the bank’s shareholders during the AGM held in Nairobi. This followed Abdul Samji’s retirement, who had held the position for nine years.