PRE-TAX PROFITS UP BY 52 PER CENT
Coastweek – – Diamond Trust Bank has announced record- breaking results for 2008, with group pre-tax profit rising sharply by 52 per cent, from Kshs 1.1 billion in 2007 to Kshs 1.6 billion in 2008.
The group’s customer deposit base swelled by a remarkable 55 per cent, from Kshs 29 billion in 2007 to Kshs 45 billion over the corresponding period ending December 2008.
The loan book for the group went up by a significant 47 per cent, to stand at Kshs 34.1 billion.
“The results are a reflection of the sustained expansion of the customer base, complemented by a rapid branch expansion programme being implemented across the East African region,” said the Bank’s Managing Director and Group CEO Mrs. Nasim Devji. This growth, she says, had seen DTB’s market share of deposits, assets and profitability increase, year after year, over the last seven years.
The group asset base grew by 56 per cent to stand at Kshs 56.1 billion up from Kshs 36 billion; the total group operating income rose to Kshs 3.7 billion up from Kshs 2.4 billion realized over the same period in the previous year.
The Bank’s Board of Directors has recommended a dividend rate of 35 per cent, equating to KShs 1.40 per share, to share holders, the same level as the previous year.
During the course of 2008, DTB Kenya acquired a controlling interest in its Uganda affiliate; this followed the acquisition of majority control by the Kenyan bank in DTB Tanzania in 2007.
DTB Kenya also established a new banking subsidiary in Burundi late last year. The Burundi operations are expected to commence next month.
DTB Kenya has signed up for a Kshs 2 billion financing package from IFC (International Finance Corporation).
The funding is being used by the bank to boost its ambitious expansion plans by establishing a wide branch footprint across Eastern Africa , as well as for increasing its lending to the small and medium enterprise sector.
This year the group plans to open nearly 25 new branches in the region, including a branch in Zanzibar which is due to open imminently.
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 (HBL), an AKFED subsidiary, and the International Finance Corporation, the private lending arm of the World Bank.