advertisement

Companies

DTB records 8.8pc rise in Q1 net profit on T-bills income

DTB head of finance and planning Alkarim Jiwa. FILE PHOTO | NMG
DTB head of finance and planning Alkarim Jiwa. FILE PHOTO | NMG 

Diamond Trust Bank (DTB) Group #ticker:DTK has announced an 8.8 per cent growth in net profit in the first three months of the year to March boosted by increased income from investment in government securities that cushion it from the effects of interest rates capping.

The lender reported an after-tax profit of Sh1.75 billion up from Sh1.61 billion during the first quarter last year. 

While interest income from loans and advances fell 11.69 per cent, return on government securities rose 40 per cent to Sh2.6 billion from Sh1.86 billion in the first quarter of 2016.

“We were able to absorb the effects [of the interest rates cap] and it has been made possible by the growth in customer deposits and in government securities,” said DTB head of finance and planning Alkarim Jiwa.