DTB full-year profit down 53 per cent to Ksh.3.2 billion
The Diamond Trust Bank (DTB) has announced a 52.9 per cent decline in full-year profit covering the period ending December 2020 with earnings falling to Ksh.3.2 billion.
The profit slack from Ksh.6.8 billion in 2019 is largely attributable to soaring costs to cover potential loan defaults alongside falling income.
The bank was for instance forced to provision a higher Ksh.7.3 billion for loan losses from a low Ksh.1.3 billion as the lender’s non-performing loans book rose by 43 per cent to Ksh.22.8 billion.
The higher provision costs have served to push the Group’s operating expenses to Ksh.19.7 billion from Ksh.13.2 billion.
At the same time, DTB’s total operating income fell slightly to Ksh.24.2 billion from Ksh.24.3 billion as net interest income declined to Ksh.18.1 billion from Ksh.18.7 billion.
Nevertheless, the Group pushed its balance sheet upwards in the period with assets crossing the Ksh.400 billion mark at Ksh.425.1 billion for the very first time.
DTB Managing Director Nasim Devji has termed the performance as resilient against the unprecedented COVID-19 crisis which weighed hard on businesses.
“The pandemic has had a detrimental effect on lives and livelihoods across the globe and, as with other players in the industry, DTB Group has had to navigate through the resulting very challenging business environment, fraught with significantly elevated credit risk, by taking a prudent view and significantly ramping up provisions,” she said.
During the period, DTB restructured loan facilities amounting to Ksh.101 billion representing 45 per cent of its total loan book tabulated at Ksh.208.6 billion at the end of 2020.
DTB’s board of directors has not recommended a final dividend payout to shareholders for the period.