DTB Group H1 Profits Up by 8 percent

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DTB Group recorded a net profit of Ksh4.34 billion for H1 2024, increasing by 8.55 percent from the Ksh 4 billion recorded during the same period in 2023.

This was driven by the group’s net earnings, which hit Ksh 20.6 billion from the previously recorded Ksh 18.7 billion. Additionally, net interest income saw an 8.3 percent increase, amounting to Sh14.2 billion.

The bank’s non-interest income also grew by 15.1 percent, reaching Sh6.4 billion, up from Sh5.5 billion, which played a key role in boosting the profits for the reviewed period.

Nasim Devji, DTB Group’s CEO, credited the bank’s strong performance to its strategic focus on expanding customer reach, advancing digital transformation, and pursuing sustainability excellence.

“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,” said Ms Devji.

“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,” she added.

However, loans decreased to Sh267.86 billion from the Sh281.17 billion recorded in H1 2023. Loan loss provisioning grew by 11 percent, reaching Sh3.62 billion, as gross non-performing loans and advances rose to Sh38.6 billion from Sh36.6 billion.

Meanwhile, staff costs increased to Sh4.53 billion from Sh4.07 billion, and other operating expenses saw a 13 percent rise, totaling Sh4.51 billion. Consequently, operating expenses climbed by 12.1 percent to Sh14.23 billion.

Read: I&M Group Records Ksh 6.1bn Profit for H1 2024

Alkarim Jiwa, DTB’s finance and strategy director, highlighted that significant investments were made in digital platform development, branch network expansion, and new staff hiring, contributing to the rise in operating expenses.

The bank’s subsidiaries in Tanzania, Uganda, and Burundi increased their contribution to the group’s pre-tax profit to 35 percent, which amounted to Sh6.27 billion during the review period.

This is a notable rise from the 23 percent contribution seen the previous year, largely due to improved performance in Tanzania.