Diamond Trust Bank (DTB) net profit for the first quarter of this year grew by 8.6 per cent , reaching KSh2.62 billion, driven by growth in both interest and non-interest income.
The company’s net earnings grew from KSh2.42 billion that had been posted during the correspondent quarter of last year.
Net increased income, mainly derived from loans and advances, rose by 6.2 per cent to KSh 7.1 billion, despite the loan book shrinking from KSh270.37 billion to KSh268.9 billion. Non-interest income rose by 32 per cent to KSh3.7 billion.
DTB operating expenses increased by 16.3 per cent, reaching KSh6.8 billion from KSh5.8 billion, due to higher provisions for loan defaults and increased staff costs.
The lender’s expenditure on staff increased to KSh2.26 billion from KSh2 billion, which contributed to the overall rise in operating expenses.
During the period, loan loss provisioning increased to KSh1.55 billion from KSh 1.37 billion, while gross non-performing loans and advances grew to KSh 42.98 billion from KSh35.1 billion.
DTB is currently in the process of hiring a CEO for its Kenyan subsidiary, marking the first time this position will be filled within the new management structure.
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Group Managing Director Nasim Devji will oversee all the bank’s subsidiaries.
This change represents a departure from the existing arrangement, where Devji, with almost three decades of experience at DTB, has simultaneously served as both the Group CEO and the CEO for DTB Kenya.
DTB announced in early May that the changes will take effect once a CEO is recruited for DTB Kenya. These changes are intended to enable Devji to concentrate on expanding the group’s operations across East Africa, where it has a presence in Kenya, Tanzania, Uganda, and Burundi.
As an affiliate of the Aga Khan Development Network (AKDN), DTB has operated in East Africa for over 75 years.
DTB’s focus has expanded to not only serve Small and Medium-Sized Enterprises but also the agricultural, education and financial technology (fintech) sectors. The bank is also heavily investing in digital banking infrastructure to enable it strategically to increase its market penetration and offer cutting edge solutions.
Presently, DTB operates 84 branches in Kenya, 36 branches in Uganda, 29 branches in Tanzania, and 4 branches in Burundi.
The bank is dedicated to empowering individuals to progress with assurance and achievement.
By Frank Mugwe
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