Net interest earnings dropped by Sh74.2 million to Sh9.49 billion from Sh9.56 billion in June 2016 — highlighting the impact of the rate controls, which were not in place in the first half of last year.
DTB’s loan book expanded by Sh12.9 billion in the six-month period to close at Sh191.4 billion compared to Sh178.5 billion last June.
Non-interest income from fees and commissions grew by 1.18 per cent to Sh2.5 billion in the period under review.
Diamond Trust Bank’s #ticker:DTK half-year net earnings dipped 5.78 per cent, weighed down by lower interest income due to the rate cap regime.
DTB, whose market share recently rose to 6.44 per cent to be ranked the sixth largest lender in Kenya following the buyout of the local branch of Pakistani lender Habib Bank, made Sh3.41 billion in after-tax profit in the six months to June 2017 compared to Sh3.62 billion posted in a similar period a year earlier.
Net interest earnings dropped by Sh74.2 million to Sh9.49 billion — highlighting the impact of the rate controls, which were not in place in the first half of last year.
DTB’s loan book expanded by Sh12.9 billion in the six-month period to close at Sh191.4 billion compared to Sh178.5 billion last June.
Non-interest income from fees and commissions grew by 1.18 per cent to Sh2.5 billion in the period under review.
Cash set aside to cover for bad loans dropped 21.6 per cent to Sh1.7 billion from Sh2.1 billion in June last year, despite a 24.6 per cent rise in non-performing loans.
DTB’s gross volume of toxic loans was recorded at Sh9.2 billion in June 2017 compared to Sh7.4 billion last year, a growth of 24.6 per cent.
Customer deposits grew by 18.61 per cent to Sh256.3 billion in the period.
Government securities
The bank’s investment in government securities rose to Sh83.7 billion from Sh63 billion in June 2016, as it chased higher returns from Treasury bonds.
The Nairobi bourse listed bank had a market share of 6.1 per cent while its newly acquired lender Habib’s was 0.34 per cent as at December 2016, according to CBK data.
“DTB continues to grow and expand its footprint in Kenya and is expected to open a few more branches and state-of- the-art digital lobbies within this year,” the bank’s chief executive Nasim Devji said earlier in a statement.
Despite the acquisition, DTB said customers of Habib Bank will continue to transact at its six branches countrywide.
Rebranding and integrating Habib into DTB’s systems is expected to be complete in September.
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