DTB credits innovation as profit rises to Sh7bn
Diamond Trust Bank (DTB) has posted 2.2 percent growth in net profit to Sh7.08 billion for the year ended December 2018, staying in tune with other top lenders.
The bank attributed the rise in its bottom-line to improved efficiencies, innovation and customer retention.
Total interest income grew by 1.8 percent to Sh35.2 billion, helped by increased income from government securities even as interest from loans and advances dropped to Sh21.9 billion from Sh22.6 billion.
“This performance is anchored on the Group’s strong market positioning and long history in the East African region serving these customers. A solid shareholder base also augments our inherent strength,” Group CEO Nasim Devji said.
Against this performance, the board has proposed a first and final dividend of Sh2.60 per share, which is the same as the previous year.
Its subsidiaries in Tanzania, Uganda and Burundi combined contributed 25 percent of the group’s assets and 16 percent of the profitability.
During the period, non-interest income grew from Sh5.2 billion to Sh5.4 billion, lifted by growth in income from fees and commissions.
Total operating expenses reduced from Sh14.86 billion to Sh14.48 billion as the group cut loan loss provisioning by 30.6 percent to Sh2.9 billion. The bank’s non-performing loans dropped from Sh13 billion to Sh12.1 billion.