This archive report was first published on 19 August 2019.
On August 19, 2019, Diamond Trust Bank (DTB) announced a 10.8% jump in net earnings for the six months to June, reaching Sh4.1 billion from Sh3.7 billion in the previous year.
The bank attributed the growth to its efforts to reduce bad loans and tighten provisioning, which resulted in a Sh1.1 billion saving on lower provisioning.
DTB has proposed not to pay interim dividends due to a decline in earnings from loans, which fell from Sh11 billion to Sh9.9 billion after the bank cut back lending to Sh190.7 billion from Sh198.2 billion in the first half of last year.
"In line with the practice adopted in recent years, the directors do not propose the payment of an interim dividend," the lender said.
As the bank shifted its focus away from interest income, it made Sh2.9 billion from foreign exchange trading income, up from Sh2.7 billion in the previous year.
DTB has also been managing its balance sheet by reducing long-term borrowed funds from Sh16.9 billion in June last year to Sh13.2 billion in the first half of 2019.
The bank holds long-term notes and debt facilities from various institutions, including the International Finance Corporation (IFC) and the African Development Bank (AfDB).
