Diamond Trust Bank (DTB) Group’s net profit for six months ended June 2024 grew 8.55 percent to Sh4.34 billion on the back of increased interest and non-interest income.
Results released Monday showed net earnings for the group grew from Sh4 billion that had been posted in the preceding similar period last year.
Net interest income rose by 8.3 percent to Sh14.2 billion despite the loan book shrinking to Sh267.86 billion from Sh281.17 billion.
Many lenders have linked a slowed growth or shrinkage in their loan books to reduced issuance of new loans and revaluation of dollar-denominated loans as the shilling gained against the dollar.
The lender’s non-interest income rose by 15.1 percent to Sh6.4 billion from Sh5.5 billion, supporting the growth in profits during the half year period under review.
DTB Group chief executive Nasim Devji attributed the bank’s performance to its business growth strategy that emphasises increased customer reach, digital transformation and sustainability excellence.
“We are actively focusing on enhancing the delivery of our group business growth strategy. This strategy is geared at achieving socio-economic relevance and pivoting DTB to be a customer-centric, top-tier, digitally driven bank in East Africa,” said Ms Devji.
“At DTB, we continue to apply a clinical focus in ensuring that we continue to roll out our strategic plans and the half-year results bear testimony to the hard work put in by our teams to achieve positive customer outcomes.”
DTB’s subsidiaries in Tanzania, Uganda, and Burundi increased their contribution to 35 percent of the group’s Sh6.27 billion pre-tax profit.
In the review period on the back of enhanced performance, particularly in Tanzania, their contribution to total profit rose from 23 percent a year earlier.
DTB finance and strategy director Alkarim Jiwa said the group made significant investments in building digital platforms, expanding branch footprint and hiring new staff, leading to the rise in operating expenses.
The lender’s operating expenses rose by 12.1 percent to Sh14.23 billion amid a higher provisioning for loan defaults and increased spending on staff costs.
Loan loss provisioning rose 11 percent to Sh3.62 billion from Sh3.26 billion in the period when gross non-performing loans and advances rose to Sh38.6 billion from Sh36.6 billion.
The lender’s staff costs went up to Sh4.53 billion from Sh4.07 billion even as other operating expenses rose by 13 percent to Sh4.51 billion.
