DTB chairman Linus Gitahi (right) and CEO Nasim Devji during the launch of the lender's 67th branch at Sarit Centre, Westlands in 2022. FILE PHOTO | NMG
Diamond Trust Bank (DTB) reported a 55 percent jump in net income to Sh6 billion for the year ended December, helped by higher interest and non-interest income.
The bank declared a dividend of Sh5 per share, up from the Sh3 per share paid last year.
The new dividend, amounting to Sh1.39 billion, will be distributed around June 15 to shareholders who will be on record as of May 12.
DTB’s total interest income rose 18.1 percent to Sh40 billion, while non-funded income, including fees and commissions rallied 45 percent to Sh9 billion.
Its loan book expanded 15 percent to Sh253.6 billion, while investment in government debt securities went up 7.1 percent to Sh133.1 billion.
Banks have in recent months benefitted from rising rates on new auctions of T-bills and bonds. The rising rates have, however, generated paper losses on their portfolio of the fixed income securities bought earlier when rates were relatively lower.
Recent sales of long term bonds has seen investors get rates topping the 14 percent mark.
DTB’s interest expenses increased 23.4 percent to Sh17.1 billion as customer deposits grew 16.9 percent to Sh387.5 billion.
Operating expenses rose 11 percent to Sh22 billion, with staff costs among the items that swelled the most. The bank reduced its provisions for bad debt by Sh416.3 million to Sh7.1 billion even as gross non-performing loans expanded by Sh2.1 billion to Sh32.2 billion.
