DTB PRE-TAX PROFIT UP BY 40%, CROSSES KSHS 6 BILLION MARK

Diamond Trust Bank has had another year of record-breaking results, with 2012 group pre-tax profit rising by a significant 40%, to Kshs 6billion, up from KShs 4.3 billion in 2011.

The group asset base went up by 26% to stand at Kshs 135 billion up from Kshs 108 billion in 2011. DTB group’s customer deposit base rose by 24%, from Kshs 86 billion in 2011 to Kshs 107 billion over the corresponding period ending December 2012. The loan book for

the Group grew by a significant 23%, to stand at Kshs 88 billion; the total group operating income rose by 29% to Kshs 12.2 billion up from Kshs 9.5 billion realized over the same period in the previous year.

Announcing the Group’s annual results, DTB’s Managing Director and Group CEO, Mrs. Nasim Devji said: “2012 has been yet another exceptional year for DTB, with notable growth achieved across all key balance sheet parameters, as well as earnings, on the back of a growing market share of assets and profitability across the East African region.”

Mrs. Devji added that DTB’s underlying growth benefitted from a continuously expanding customer base serviced through branches as well as, technology- anchored, alternate delivery channels including mobile banking, internet banking and card services. The group results have also benefitted from the continuing growth of and share of results from, DTB’s subsidiaries in Tanzania, Uganda and Burundi.

Following the announcement of the results, the Bank’s board of directors has recommended a dividend rate of 47.5%, equating to KShs 1.90 per share, compared to KShs 1.70 (42.5%) paid last year.

This translates into a 26% increase, year on year, in the amount of dividend payout as the proposed dividends will also be paid on the additional shares allotted to shareholders in September last year, following a rights issue.

“The capital raised through the rights issue will be used to fund the Bank’s strategic expansion plan, which has already seen DTB Kenya recently increase its investments in its subsidiaries in Tanzania and Uganda”, said Mr. Abdul Samji, DTB Group Chairman.

Mr. Samji said that DTB would continue to focus on its branch expansion programme, adding that the Group’s branch network in East Africa stood at 91 presently, up from 76 branches at the beginning of last year. In Kenya, the bank operates 44 branches whilst in Uganda and Tanzania, DTB has 27 and 16 branches respectively; DTB Kenya’s

subsidiary in Burundi operates 4 branches. In Kenya, the Bank plans to leverage its growing agency banking network to increase its outreach to customers.

DTB is an affiliate of the Aga Khan Fund for Economic Development (AKFED), the economic development arm of the Aga Khan Development Network (AKDN). Amongst the bank's key

shareholders are Habib Bank Limited and Jubilee Holdings Limited, both affiliates of AKFED, and the International Finance Corporation, a subsidiary of the World Bank