DTB profit jumps to Sh6.4bn on higher revenue and cost control

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Diamond Trust Bank Kenya Limited (DTB) posted a Sh6.4 billion net profit in the half-year to June, on the back of strong revenue growth and tighter control of operating costs.

The performance marked a 34.1 percent increase from net earnings of Sh4.77 billion in the first six months of last year, the lender’s unaudited financial statements show.

The growth was driven primarily by the bank’s top line, with the total operating income increasing by 21 percent to Sh26.5 billion, from Sh21.9 billion a year earlier.

Net interest income, the largest contributor to revenue, rose 26 percent to Sh20 billion, from Sh15.9 billion, while non-interest income increased seven percent to Sh6.5 billion.

The growth came as the lender expanded its balance sheet, with customer loans rising 14 percent to Sh328 billion and deposits increasing 11 percent to Sh534 billion.

DTB also kept operating costs under control. Excluding loan-loss provisions, operating costs increased by about six percent, according to the lender.

However, loan-loss provisions rose 37 percent to Sh4.4 billion, reflecting continued pressure from non-performing loans.

Despite the higher provisions, DTB’s asset quality improved, with its non-performing loan ratio falling to 11.6 percent from 13 percent, while specific provision coverage increased to 56.6 percent from 40.7 percent.

DTB Group chief executive Nasim Devji attributed the performance to growth initiatives across its markets.

“Across the three operating markets, DTB continues to pursue growth opportunities across retail, SME and corporate segments, pivoted by ecosystem-driven customer acquisition, digital-led value propositions, targeted lending and deposit mobilisation, sustained revenue generation and technology-anchored operational efficiencies,” said Devji on Wednesday.

DTB’s earnings growth was faster than that of most of the large listed banks that had released their half-year results.

Equity Group’s net profit rose 31.5 percent to Sh45.5 billion, while Co-operative Bank recorded a 28 percent increase to about Sh18 billion. KCB Group’s profit rose 14.2 percent to Sh36.1 billion, while NCBA’s increased 12.2 percent to Sh12.4 billion.

DTB also maintained its policy of not paying an interim dividend, with the bank traditionally paying dividends after the full-year results.

DTB raised its full-year 2024 dividend to Sh7 per share, and subsequently raised the payout to Sh9 per share for 2025, maintaining its practice of making a final rather than interim distribution.

Reporting originally appeared via Business Daily. Read the full source for additional context.