15 C
Nairobi
Wednesday, January 27, 2021

Diamond Trust Bank Nine Months Profit Falls By 28%

Must read

Samuel Gitongahttp://www.businesstoday.co.ke
Samuel Gitonga is a senior reporter at BUSINESS TODAY. Email: [email protected]

Diamond Trust Bank (DTB) on Tuesday reported a Ksh4.3 billion profit for the nine months ended September 2020, a 28% reduction from the Ksh6 billion profit reported at a similar period the previous year.

The reduction in profitability could be directly attributed to a higher loan loss provision after it grew threefold during the period under review to Ksh2.9 billion from Ksh870 million.

In the review period, DTB’s balance sheet grew to Ksh394 billion from Ksh382 billion.

Customer deposits rose marginally to Ksh288.1 billion from Ksh283 billion as liabilities surged to Ksh325 billion from Ksh318 billion.

The group’s interest income stood at Ksh23.7 billion down from Ksh24.5 billion posted last year with loans and advances being the main driver of the group’s interest income.

Non-interest income was however on an upward trajectory to Ksh5 billion from Ksh4.4 billion.

Operating income rose to Ksh18.9 billion from Ksh18.1 billion as operating costs jumped from Ksh9.5 billion to Ksh12.3 billion.

Bad loans referred to as Non-Performing Loans (NPLs) increased to Ksh18 billion from Ksh17.9 billion with it being likely that the NPLs will increase in the subsequent reporting periods due to the economic effects of COVID-19.

The lender also advanced some Ksh3.2 billion in loans and advances to insiders and employees down from Ksh3.4 billion compared to a similar period last year.

Consequently, the firm’s profitability as measured via Earnings Per Share (EPS) fell to Ksh14.40 down from Ksh20.10.

See Also>>>> StanChart’s Nine Months Profit Falls By 30%

 

 

 

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article