Growing loan book pushes DTBand#039s net profit up 11.5pc

Diamond Trust Bank (DTB) has recorded an 11.5 per cent growth in after tax profit for the nine months ended September riding on a growing loan book.

The listed lender reported a Sh4.7 billion net profit in the third quarter compared to Sh4.2 billion posted at a similar time last year.

DTB’s loan book expanded by Sh46 billion to Sh172 billion leading to a 21.2 per cent increase in interest income to Sh18.3 billion.

Its deposit base increased by Sh26 billion to Sh175 billion. Interest expenses grew at a faster pace, 29.3 per cent, underlining the recent rise in the cost of cash.

READ: DTB lending book ranked the best as National Bank trails

DTB has regional operations in Tanzania, Uganda and Burundi.

The lender – majority owned by the Aga Khan Fund for Economic Development (AKFED) – has said it aims to expand operations to the Democratic Republic of Congo, Madagascar and Rwanda.

READ: DTB profit hits Sh5.7 billion on growth from regional outlets

The banks share prices slipped to Sh195 per unit on Friday down from Sh200 in the previous day trading.

SOURCE: BUSINESS DAILY