DTB nine months profit down 28.6 per cent on higher loans default cover

Diamond Trust Bank (DTB) has announced a 28.6 per cent profit dip to Ksh.4 billion in nine months of operations to September 30.

The earnings slide from Ksh.5.6 billion last year is largely attributable to increased cover for loan defaults by customers affected by the COVID-19 pandemic.

The loan-loss provision costs rose by over three times to Ksh.2.8 billion from Ksh.870.3 million last year lifting the banks overall operating costs to Ksh.22.2 billion.

DTB however marked a resilience in the growth of its gross non-performing loans with the bad loans stock tipping upwards slightly to Ksh.18 billion from Ksh. 17.9 billion.

Despite the dip in earnings, DTB has grown its total operating income to Ksh.18.9 billion from Ksh.18.2 billion last year supported largely by lower interest expenses and greater non-interest funded income (NFI)

This is the cooldown in the cost paid for holding on to customer deposits outpaced laxity in interest income before being boosted by NFI

Total interest income tumbled by 3.3 per cent to Ksh.23.7 billion but NFI rose 13.6 per cent to Ksh.5 billion.

DTB further marked a balance sheet expansion with both customer loans and deposits rising by 7.1 and 1.8 per cent to Ksh.205.6 billion and Ksh.288.2 billion respectively.

The lender has however marked a decline in its earnings per share to Ksh.14.40 from Ksh.20.10 a year ago.