Diamond Trust Bank (DTB) net profit for three months ended March 2024 grew 8.6 percent to Sh2.62 billion as interest and non-interest income increased.
Unaudited results released Tuesday showed net earnings for the group grew from Sh2.42 billion that had been posted in the same quarter a year earlier.
The review period saw net interest income, mainly derived from loans and advances to customers, rise by 6.2 percent to Sh7.1 billion even as the loan book shrunk to Sh268.9 billion from Sh270.37 billion.
Non-interest income rose by 32 percent to Sh3.7 billion, supporting the growth in profits during the quarter under review.
DTB’s operating expenses rose by 16.3 percent to Sh6.8 billion from Sh5.8 billion, driven by a higher provisioning for loan defaults and increased spending on staff costs.
Loan loss provisioning rose to Sh1.55 billion from Sh1.37 billion in the period gross non-performing loans and advances rose to Sh42.98 billion from Sh35.1 billion.
The lender’s spending on staff went up to Sh2.26 billion from Sh2 billion, contributing to the rise in operating expenses.
DTB is currently in the process of recruiting a CEO for the Kenyan subsidiary for the first time, in a new management structure that will leave group managing director Nasim Devji in charge of all the subsidiaries.
This will mark a shift from the current structure where Ms Devji, who has been at DTB for nearly three decades, has been holding the dual positions of group CEO as well as the CEO for DTB Kenya.
DTB said early May the changes will be effected once a CEO for DTB Kenya is recruited and are meant to allow Ms Devji to focus on growing the group across East Africa. The group has a presence in Kenya, Tanzania, Uganda and Burundi.
The lender plans to pay a dividend of Sh6 per share amounting to Sh1.6 billion on the performance for the financial year ended December 2023 where net profit grew 13.4 percent to Sh6.8 billion.
The dividend, an increase from Sh5 paid on previous year’s results, will be paid on or about June 28 to shareholders who were on its register as of May 24.
DTB is among the listed lenders that raised dividends to record levels. Standard Chartered Bank Kenya, Absa Bank Kenya, Stanbic Holdings, I&M Group and NCBA Group also raised dividends on the back of full year earnings growth.
