Diamond Trust Bank (DTB) Group's net profit for six months ended June grew 11.7 percent to Sh4 billion as interest and non-interest income increased.
Results released Wednesday showed net earnings for the group grew from Sh3.58 billion that had been posted in the half-year ended June last year.
The group’s share of profit after tax from associates —undertakings in which the group has between 20 percent and 50 percent of the voting rights—grew from Sh10.23 million to Sh12.54 million.
DTB owns a 40 percent stake in Services and Systems Limited and 20 percent each in Jubilee Insurance Company of Burundi S.A and Jubilee Life Insurance Company of Burundi S.A.
The review period saw net interest income, including earnings from loans and advances to customers, rise by 17.7 percent to Sh13.1 billion as the loan book expanded from Sh233.6 billion to Sh281.2 billion.
Non-interest income rose by 41 percent to Sh5.5 billion coinciding with the period Central Bank of Kenya lifted the freeze on charges on transactions between banks and telcos, leading to a growth in fees and commission.
DTB, however, raised the provisioning for loan defaults by 34.2 percent to Sh3.26 billion, mirroring the trend that has been seen among its tier I peers, including KCB Group, Equity Group and Stanbic Holdings.
The rise in provisioning for loan defaults, added to a 41.3 percent rise in staff costs from Sh2.88 billion to Sh4.07 billion, drove up operating costs by 35.5 percent to Sh12.7 billion.
Gross non-performing loans and advances rose from Sh31.77 billion to Sh36.55 billion.
