Diamond Trust profit hits Sh2.5bn

A client at a DTB cash machine. Photo/FILE
A client at a DTB cash machine. Photo/FILE 

Diamond Trust Bank grew its net profit by 83 per cent to Sh2.5 billion in 2010 compared to the previous year, powered by a bigger asset base and increased customer deposits.

Shareholders are set to receive a dividend of Sh1.60 per share, up from Sh1.55 in 2009 – a 3.2 per cent rise – as well as a bonus share issue amounting to one bonus share for every five held as at May 20, 2011.

Assets rose to Sh84 billion as at the last day of 2010 compared to Sh67 billion at the end of the previous year, indicating a growth of 25 per cent.

“In 2010, DTB performed exceptionally well with the group’s market share of assets and profitability continuing to grow across the East African region,” said Mrs Nasim Devji DTB’s managing director and group CEO.

Customer deposit base rose

The group’s pre-tax profit increased by 80 per cent to Sh3.5 billion in 2010 from Sh1.9 billion in the previous year.

The group’s customer deposit base rose by a significant 25 per cent, to Sh66 billion from Sh53 billion in 2009 over the corresponding period to December 2010.

The loan book for the group also went up by 23 per cent, to stand at Sh52 billion.

The total group operating income in 2010 rose to Sh7.7 billion up from Sh5 billion realised over the same period in the previous year, with trading of fixed income bonds earning the lender Sh1 billion.

“The sustained growth of DTB’s customer base is underpinned by its branch expansion strategy as well as the launch last year of alternative, technology-based channels such as mobile banking, cash management services and enhanced internet banking services,” said Mrs Devji.

Branch footprint

In 2010, the DTB group increased its branch footprint across the East African region from 53 to 64, of which half are in Kenya, 18 in Uganda, 12 in Tanzania and two in Burundi.

The group plans to double its branches in East Africa to over 100 over the next three years.

Retained earnings of the company stood at Sh5.6 billion from Sh3.6 billion in the previous year while the share premium – capital representing the difference between the price paid for an issue of shares and their par value – was Sh2.2 billion.

Both retained earnings and share premium accounts can be used to finance bonus shares to shareholders