Growing loan book pushes DTB's net profit up 11.5pc

Corporate News

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. PHOTO | FILE 

By GEORGE NGIGI, gngigi@ke.nationmedia.com

In Summary

• Listed lender'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.

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.