Diamond Trust Bank profits grows by 66 per cent

By Evelyn Njoroge

Diamond Trust Bank has recorded a 66 per cent increase in after tax profit from Sh295 million in 2005 to Sh488 million in 2006.

In a statement released on Monday, the bank’s Managing Director Nasim Devji attributed this growth largely to the increase in the customer base, introduction of innovative products and the strengthening of the bank’s presence in the East African region.

She said: “Retail banking boosted customer deposits by over 26 percent from Sh13.3 billion at the start of the financial year to close at Sh16.7 billion, while loans and advances to customers went up to Sh13.8 billion.”

The MD said the growth, had boosted interest income to Sh1.93 billion, representing a 36 percent increase over the previous year, and a growth of 28 percent in fee income earnings to stand at Sh431 million.

Nasim said total assets also grew by 33 percent from Sh16.4 billion in 2005 to Sh21.7 billion in 2006.

The Board of Directors recommended a dividend payout of Sh1 per share.

“This translates into a significant 61 percent increase. Last year, the bank paid out a dividend of Sh0.70.”

The bank recently raised Sh776 million in a rights issue from the 15.5 million rights offered to its shareholders.

The Bank has set in motion an expansion strategy which will see it open new branches in East Africa.

“In Kenya, we plan to open several branches in Nairobi in the next few months, with plans to open more upcountry branches thereafter,” said Devji.

Through its affiliates in the East African region, the Diamond Trust Bank Group also has branches in Dar-es-Salaam, Mwanza and Arusha in Tanzania and in Kampala, Uganda.

The bank increased its ATM network to 16, following the installation of two ATMs in Mombasa last year. This coupled with its membership in the Pesapoint ATM network, has broadened its reach countrywide.

DTB is an affiliate of the Aga Khan Fund for Economic Development, AKFED, the economic development arm of the Aga Khan Development Network.

Amongst the bank’s key shareholders are Habib Bank Limited, an AKFED subsidiary, and the International Finance Corporation, the private lending arm of the World Bank.

Source

Author: ismailimail

Independent, civil society media featuring Ismaili Muslim community, its achievements and humanitarian works.

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