DTB Bank Posts 12% Profit Growth in H1 2024

Diamond Trust Bank (DTB) has demonstrated impressive growth in the first half of 2024, posting a net profit of Sh4.9 billion. This represents a 12 percent increase compared to the same period last year, highlighting the bank’s successful strategies in regional expansion and digital transformation.

DTB Group Chief Executive Officer and Managing Director Nasim Devji shared insights into the bank’s performance, emphasizing the growing importance of DTB’s subsidiaries in Tanzania, Uganda, and Burundi. These regional operations have significantly boosted the group’s profitability, with their contribution to pretax profits rising from 23 percent to 35 percent. Devji attributed this success to the bank’s strategic diversification, stating, “The improved performance reflects the group’s inherent resilience and diversity, drawing from its growing presence in markets outside Kenya, where we continue to optimise on existing and emerging opportunities.”

The bank’s financial results paint a picture of robust growth across various metrics. DTB Finance & Strategy Director Alkarim Jiwa reported that the Group’s total assets had grown to Sh585 billion, up from Sh579 billion in the previous year. Operating income saw a substantial increase of 10 percent, reaching Sh20.6 billion, while pretax profits grew to Sh6.3 billion.

Jiwa provided further details on the bank’s financial performance, noting that net interest income had improved to Sh14.2 billion, up from Sh13.1 billion earned in the first half of 2023. He attributed this growth to better interest margins and increased non-interest income revenues.

However, the bank’s strategic investments in digital transformation and expansion have led to an increase in operating expenses. Jiwa reported that these expenses rose to Sh10.6 billion, up from Sh9.4 billion in the previous year. He explained that this increase was a result of “significant investments made in building robust digital platforms, expanding branch footprint and talent to support the delivery of the business growth strategy.”

Despite the rise in expenses, DTB’s management views these investments as crucial for long-term growth and competitiveness. The bank’s focus on enhancing its digital capabilities and expanding its regional presence appears to be paying off, as evidenced by the strong financial results.

The bank’s performance in the first half of 2024 demonstrates its ability to navigate the challenges of the East African banking sector while capitalizing on emerging opportunities. By leveraging its diverse regional presence and investing in cutting-edge digital solutions, DTB has positioned itself for continued growth and success.

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