An affiliate of the Aga Khan Development Network (AKDN), DTB has operated in East Africa for over 70 years.
Diamond Trust Bank (DTB) has announced a profit after tax of Ksh6.7 billion (US$66.3 million) for the year ended December 31, 2018, as the lender recorded a steady growth in customer deposits.
This came as the bank continued to invest more on government securities in Kenya’s interest rate cap environment, which has seen most banks shun lending to individuals and SMEs who are considered high risk borrowers.
The Nairobi Securities Exchange (NSE) listed bank saw its total interest (including deposits and placements with banking institutions) grow to Ksh35.3 billion up from Ksh34.6 billion.
This is despite a drop on interest income from loans and advances which closed at Ksh21.9 billion compared to Ksh22.7 billion the previous year.
That from government securities however increased to Ksh13 billion up from Ksh11.7 billion the previous year.
DTB which announced its financial results on Tuesday evening said its customer deposits during the year increased by 6.3 per cent to Ksh282.9 billion up from Ksh266.2 billion in 2017.
Loans and advances to customers recorded a slight drop to close at Ksh193.1 billion compared to Ksh196 billion (1.5 per cent). Non-Performing Loans (NPLs) equally reduced to Ksh12.1 billion from Ksh13.1 billion.
The tier one bank said it leveraged on improved efficiencies, innovation and customer retention to grow its bottom line.
The bank’s assets grew to Ksh378 billion, four per cent higher than the previous year (Ksh363 billion).
Nasim Devji, DTB’s Managing Director and Group Chief Executive Officer said: “We are pleased that DTB delivered strong results. This speaks to the resilience of the Group and its strong, loyal and diverse customer base across East Africa.”
DTB’s subsidiaries in Tanzania, Uganda and Burundi combined contributed 25 per cent of the group’s assets and 16 per cent of its profitability.
“This performance is anchored on the Group’s strong market positioning and long history in the East African region serving these customers. A solid shareholder base also augments our inherent strength,” said Ms Devji.
DTB maintained a high liquidity ratio of 53.5 per cent at the end of 2018, compared to the 20 per cent minimum prescribed by the regulator.
It is also one of the highest capitalised banks in Kenya, with the ratio of core capital to total risk weighted assets standing at 18.7 per cent, against the 10.5 per cent minimum required by the Central Bank.
DTB’s board has proposed a first and final dividend of Ksh2.60 per share, which is the same as the previous year, with earnings per share increasing slightly, from Ksh23.73 to Ksh23.91.
An affiliate of the Aga Khan Development Network (AKDN), DTB has operated in East Africa for over 70 years.
It’s focus on the SME sector and commitment to enhancing convenience for customers through branch network expansion has driven the Bank’s growth in recent years. The lender has 137 branches in Kenya, Tanzania, Uganda, and Burundi, some of which are 24/7 digital branches.
READ:DTB joins big boys with Ksh5.2 billion profit in Q3
