DTB reports Sh4.9 billion net profit with 12 per cent growth in half-year results

Diamond Trust Bank (DTB) has posted strong financial metrics in its half-year results, underlining the success of its strategic initiatives.

The bank reported a net profit of Sh4.9 billion, marking a 12 per cent growth compared to the same period last year.

DTB Group CEO Nasim Devji attributed the bank's success to its ongoing business growth strategy, which aims to enhance customer reach and experience across East Africa.

“At DTB, we are actively focusing on enhancing the delivery of our group business growth strategy. This strategy is geared at achieving socio-economic relevance and pivoting DTB to be a customer-centric, top-tier, digitally driven Bank in East Africa,” Devji said.

"The DTB business growth strategy is also premised on achieving sustainability excellence and is underpinned by our core purpose of improving the quality of life for all our stakeholders. It enables us to create value by enriching the lives of our customers and other stakeholders in a sustainable, meaningful and impactful way.”

Key financial indicators from the results reflect DTB’s robust performance. The bank’s total assets increased to Sh585 billion, up from Sh579 billion in the corresponding period of the previous year.

Operating income also saw a significant rise, climbing by 10 per cent to Sh20.6 billion.

Additionally, DTB’s pretax profits grew to Sh6.3 billion, underscoring the bank’s resilience and effective execution of its growth strategy.

A notable highlight is the improvement in DTB's Current Account and Savings Account (CASA) deposits ratio, which rose to 54 per cent from 49 per cent in the previous year.

This improvement was driven by growth across all customer segments, reinforcing the bank’s strong deposit mobilisation capabilities.

Net interest income was another area of growth, increasing to Sh14.2 billion from Sh13.1 billion in the first half of 2023.

This growth was attributed to better interest margins and higher non-interest income revenues.

However, the bank’s operating expenses rose to Sh10.6 billion, up from Sh9.4 billion, reflecting DTB’s substantial investments in digital platforms, branch expansion, and talent acquisition.

DTB's regional subsidiaries also contributed positively to the overall performance.

The contribution of the bank’s subsidiaries in Tanzania, Uganda, and Burundi to pretax profits increased to 35 per cent, a significant rise from the 23 per cent recorded in the same period last year.

DTB's customer base grew by a notable 75 per cent over the past year, reaching over 2 million customers across East Africa.

The bank also reported customer deposits reaching Sh432 billion, reflecting strong customer confidence and engagement.

The bank’s strategic focus on diversifying its sectoral involvement also paid off.

Traditionally strong in trade, manufacturing, real estate, and construction, DTB has expanded into agriculture, education, technology, and the public sector, broadening its revenue streams and enhancing its market presence.

In summary, DTB's half-year financial metrics demonstrate the effectiveness of its business growth strategy, highlighting significant improvements in key areas such as asset growth, income generation, deposit mobilisation, and regional performance.

The bank’s continued focus on digital transformation, customer acquisition, and sustainability is expected to further bolster its financial standing in the coming periods.