Kenya-based Diamond Trust Bank Group has recorded a 20.1-percent increase in net earnings in H1 2021 following a rise in interest and non-interest income, African Markets reported.
The bank recorded growth in net profit in H1 2021 from Ksh2.62 billion ($23.9 million) during the same period last year to Ksh3.15 billion ($28.7 million).
Interest income increased six percent to Ksh9.82 billion ($89.43 million) following an increase in its loan book and increased investments in government debt.
Non-interest income, which the company mainly derives from fees and commissions on loans and advances, rose 5.5 percent to Ksh3.32 billion ($30.24 million).
Loan loss provisions increased by 23.9 percent to Ksh2.31 billion ($21.03 million) from Ksh1.87 billion ($17.03 million), as the stock of gross defaults rose from Ksh17.54 billion ($160 million) to Ksh22.2 billion ($202 million).
The increased provisioning contributed to total operating expenses rising 3.7 percent to Ksh8.27 billion ($75.32 million).
DTB Group is a leading lender in East Africa, with an operational footprint in Kenya, Burundi, Tanzania and Uganda.
The banking group engages in retail and commercial banking services to individual and business customers. Its services further include deposit accounts, debit and credit cards, money transfer, asset finance, insurance premium finance facility, trade finance and cash management.
Its flagship company, DTB Kenya Limited, ranks as the eighth largest commercial bank by assets of 43 licensed banks in Kenya. Moreover, it is rated as one of Kenya’s tier-1 banks alongside KCB, Equity, Co-operative Bank, Stanbic, Absa and Standard Chartered Bank.
Kenyan businessman Linus Gitahi is the group chairman of Diamond Trust Bank.
Gitahi served as the managing director of GlaxoSmithKline Consumer Nigeria Plc and currently chairs the board of several companies, including AIB Capital Limited, Oxygene Communications Limited, Home Afrika and Tropical Brands (Africa) Limited.
DTB Kenya Limited is an award-winning tier-1 lender in Kenya that is also listed on the Nairobi Securities Exchange.
