DTB Group posted a net profit of Ksh 4.34 billion for H1 2024, marking an 8.55 percent addition from the Ksh 4 billion posted during the first six months of 2023. This growth was fueled by the group’s net earnings, which rose to Ksh 20.6 billion from Ksh 18.7 billion in 2023.
The group’s net interest income experienced an 8.3 percent boost, reaching Ksh 14.2 billion. The bank’s non-interest income also saw a significant 15.1 percent increase, climbing to Ksh 6.4 billion from Ksh 5.5 billion, which contributed notably to the profit surge during the period under review.
DTB Group’s CEO, Nasim Devji, attributed the strong performance to the bank’s strategic emphasis on broadening customer access, advancing digital transformation, and fostering sustainability.
“We are actively focusing on enhancing the delivery of our group business growth strategy. This strategy is geared at achieving socio-economic relevance and pivoting DTB to be a customer-centric, top-tier, digitally driven bank in East Africa. At DTB, we continue to apply a clinical focus in ensuring that we continue to roll out our strategic plans and the half-year results bear testimony to the hard work put in by our teams to achieve positive customer outcomes,” said Ms Devji.
However, the bank’s loan portfolio decreased to Ksh 267.86 billion from Ksh 281.17 billion in the first half of 2023. Loan loss provisions increased by 11 percent, reaching Ksh 3.62 billion, as gross non-performing loans and advances rose to Ksh 38.6 billion from Ksh 36.6 billion. Staff costs also grew to Ksh 4.53 billion from Ksh 4.07 billion, while other operating expenses increased by 13 percent to Ksh 4.51 billion. As a result, overall operating expenses rose by 12.1 percent to Ksh 14.23 billion.
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Alkarim Jiwa, DTB’s finance and strategy director, noted that the rise in operating expenses was driven by significant investments in digital platform development, branch network expansion, and the hiring of new staff.
The bank’s subsidiaries in Tanzania, Uganda, and Burundi contributed 35 percent to the group’s pre-tax profit, which amounted to Ksh 6.27 billion during the review period. This marks a significant increase from the 23 percent contribution recorded in the previous year, largely attributed to improved performance in Tanzania.