DTB resumes dividends as full year profit rises to Ksh.3.9 billion

The bank which posted a lower profit of Ksh.3.2 billion in 2020 has seen its earnings jump off an 8.8 per cent rise in operating income to Ksh.26.3 billion.

The higher income is primarily tied to a 10.5 per cent growth in net interest income to Ksh.20 billion from Ksh.18.1 billion.

At the same time, DTB has posted a 3.3 per cent growth in non-interest funded income (NFI) to Ksh.6.3 billion.

Nevertheless, the bank has posted a marginal rise in operating expenses to Ksh.19.9 billion will loan-loss provision costs for instance jumping to Ksh.7.6 billion from Ksh.7.3 billion.

The board of DTB has recommended the payment of a final dividend at Ksh.3 per share for a combined shareholder payment of Ksh.838.8 million even as the return rate/dividend yield trails the industry average.

However, DTB Chairman Linus Gitahi says shareholder payouts will rise in the future as the bank works out a balance between rewarding shareholders and capital conservation.

“We anticipate that the dividend pay-outs will progressively increase in the years ahead as we continue to realize our aspirations to pivot DTB as a customer-centric, top-tier, digitally-driven bank,” he said.

Besides digital exploits, DTB says it is targeting to open 20 new branches in Kenya this year with plans to top 200 branches in East Africa in the next two years.

DTB earnings per share have improved to Ksh.13.98 per share from Ksh.11.61 after the profit jump.