Government securities drive up DTB profit to Sh4.8 billion
Diamond Trust Bank (DTB) third-quarter net profit has increased by 20.1 percent to Kes4.8 billion from a flat Kes4 billion reported at a similar time last year on account of rising interest income.
In the nine-month period, the lender recorded a 3.03 percent uptick in total operating income that closed at Kes19.52 billion largely due to good returns from investment in government papers.
Customer deposits grew 12.35 percent to Kes323.74 billion while the loan book remained flat at Kes205.55 billion despite improving economic climate.
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The bank’s net interest income posted 5.89 percent jump to Kes14.73 billion mainly driven by income from government papers.
Non-funded income decreased by 4.87 percent to Kes4.79 billion.
DTB has seen its total operating expenses fall to Kes12.1 billion from Kes12.4 billion in September 2020 even after raising its cover for loan defaults to Kes3.1 billion from Kes2.9 billion at a similar period last year.
The bank’s stock of non-performing loans increased by 29.87 percent to Kes25.72 billion, subsequently pushing its NPL ratio to 11.54 percent from 8.68 percent reported during the third quarter 2020.
