Diamond Trust Bank Reports 12% Profit Rise, Driven by Strategic Growth Initiatives

Diamond Trust Bank (DTB) has reported a robust 12% increase in its half-year net profit, reaching Ksh 4.9 billion. This impressive performance, announced on Monday, reflects the bank’s strategic efforts to bolster customer value and expand its regional footprint.

DTB Group CEO and Managing Director Mrs. Nasim Devji attributed this growth to the bank’s well-executed business growth strategy. This strategy emphasizes enhancing customer value through increased reach, digital transformation, and a commitment to sustainability. “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,” Mrs. Devji said.

The strategy is designed to improve the quality of life for stakeholders and create meaningful, sustainable value. Mrs. Devji highlighted that DTB’s approach is not just about financial performance but also about making a positive impact on customers’ lives and the community at large.

DTB’s traditional strengths in sectors such as trade, manufacturing, real estate, and construction have been complemented by a strategic expansion into new sectors including agriculture, education, technology, and the public sector. This diversification has significantly broadened the bank’s customer base, now exceeding two million across East Africa—a 75% increase from the previous year.

The bank’s growth is reflected in its financial metrics. Customer deposits rose to Ksh 432 billion, and non-performing loans were stabilized. The operating income saw a 10% increase to Ksh 20.6 billion, and pretax profits grew to Ksh 6.3 billion. The CASA (Current Account and Savings Account) deposits ratio improved to 54%, up from 49% in the same period last year, indicating stronger customer engagement across all segments.

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DTB’s regional presence has also strengthened, with its subsidiaries in Tanzania, Uganda, and Burundi contributing significantly to pretax profits—35% compared to 23% in the previous year. The improved performance in these markets, particularly Tanzania, underscores DTB’s resilience and successful adaptation to diverse regional opportunities.

The bank’s total assets grew to Ksh 585 billion from Ksh 579 billion over the past year. Net interest income increased to Ksh 14.2 billion, reflecting better interest margins and revenue from non-interest income sources. However, operating expenses also rose to Ksh 10.6 billion from Ksh 9.4 billion, attributed to substantial investments in digital platforms, branch expansion, and talent acquisition.

DTB Finance & Strategy Director Mr. Alkarim Jiwa elaborated on the bank’s dual approach to growth. “The regional business growth model will hinge on a two-strand approach: leveraging traditional brick-and-mortar infrastructure alongside new-age technology to enhance customer convenience and access,” he said. This approach is expected to deepen market penetration and provide a seamless banking experience for customers.

In summary, DTB’s half-year results underscore the success of its strategic initiatives, including a focus on digital transformation, sustainability, and regional expansion. The bank’s solid financial performance and growing customer base position it well for continued success in the East African market.

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