DTB to pay out Sh1.4 billion in dividends after Sh6.79b profit

Diamond Trust Bank branch on Koinange Street, Nairobi. [Elvis Ogina, Standard]

Diamond Trust Bank's (DTB) shareholders are set to take home a total of Sh1.4 billion in dividends, representing a 66 per cent higher payout than last year after the lender posted a 54 per cent jump in net earnings.

DTB posted Sh6.79 billion in profit after tax for the full year ending December 2022, riding on higher funded and non-funded income streams.

The lender's total operating income surged 21.76 per cent to Sh31.9 billion, driven by growth in net interest and non-interest income.

Based on the year-end results, DTB directors have recommended the payment of a first and final dividend of Sh5 per share for 2022 compared to the previous year's Sh3 per share.

"Following this strong performance, the board has proposed a dividend of Sh1.4 billion, or Sh5.00 per share, reflecting a 67 per cent growth in the dividends paid last year," said the lender in its financials published on Monday, March 27.

DTB Chairman Linus Gitahi said the lender will continue to progressively increase the dividend payouts "on the back of an improving performance by the Group as well as ensuring that there is an equitable balance between rewarding shareholders and retaining capital to fund DTB's ambitious growth aspirations."

The bank recorded Sh4.41 billion in net earnings a year earlier.

It said its regional expansion had paid off after its subsidiaries continued to post increased earnings. The lender has opened 10 new branches since July last year in Kenya and plans to open another 20 branches over the next nine months, it said. This will increase its footprint in East Africa to over 150 branches by the end of the year.

Group Chief Executive Nasim Devji said the lender is confident the investments in its traditional branch footprint as well as in its digital transformation journey will deliver value to its customers as well as shareholders.

"We believe that the investments we are making in our people, branch and digital platforms will deliver not just convenience and ease of access to our customers, but also provide them with innovative value propositions which speak to their needs," said Devji.