Diamond Trust Bank (DTB) has posted 20.8 per cent growth in half year profit to Kes2.9 billion from Ksh.2.4 billion recorded at a similar period last year attributable to improving operating income.
The bank’s total operating income for the six months to June is 5.6 per cent higher at Kes13.1 billion with interest income growing ahead of the non-funded income at Kes9.8 billion from Kes9.3 billion in June 2020.
The lender’s non funded income also went up marginally closing the half at Kes3.3 billion from Kes3.2 billion realized last year.
DTB’s total operating expenses, however, surged by 3.8 per cent to close at Kes8.3 billion despite the trimming of loan loss provisioning costs by 17.4 per cent to Kes1.9 billion.
In the six months to June, DTB’s loan loss provision went up by 23.9 per cent closing at 2.31 billion from Kes1.87 billion informed by the bank’s jump in the gross stock of non-performing loans that surged to Kes22.2 billion.
In the period, the Nairobi Securities Exchange listed earnings per share have improved to Kes10.48 from Kes8.59 at the same stage in 2020.
The lender’s board of directors have, nevertheless, omitted the declaration of an interim dividend for the period.
DTB joins Nairobi Securities Exchange listed lenders Equity Group, KCB Group and Cooperative Bank that last week reported average loan growth at 15.8 per cent, being a 14.5 per cent jump recorded at a similar period last year.
The lenders’ increase in loans was also faster than the 13.8 per cent uptick in their investment in government securities, a pointer that the banks’ are increasing lending to businesses as they smart from the pandemic hit.