The Diamond Trust Bank has released its financial results for the last six months of 2020, shedding off 25 percent from the profits as compared to a similar period in 2020.
The lender has registered 4.5 billion shillings in profits for the period ended June 2020 a 25 percent drop in what the bank attributes to the measures put in place to counter Covid-19, including the restructuring of loans.
The total operating income increased by 2 percent to 12.4 billion shillings in the period compared to 12.2 billion shillings in June 2019.
The non-funded income grew by 6 percent to 3.2 billion shillings from 2.9 billion shillings as the lender says that the focus has now shifted to meeting the needs of the customers during this Covid-19 period.
“Our focus right now is to cater to the needs of our customers as they seek ways to keep their businesses operational until the situation improves. We also continue with efforts to protect our staff and other stakeholders and look forward to the business environment improving,” DTB Group CEO and Managing Director Nasim Devji said.
DTB’s non-branch transactions rose to 87 percent up from 81 percent on a year-on-year comparison. This change was on account of the increased adoption of mobile and internet banking by the Bank’s customers.
Total Assets grew by 3 percent to 388.3 billion shillings, funded by customer deposits and existing business growth. Net loans and advances grew 6 percent to close the period at KSh201.5 billion. Shareholders’ equity grew 7 percent from 56.9 billion shillings to 61.0 billion shillings. This was driven by the growth in retained earnings over the 12 month period to June 2020.
The Bank restructured loans amounting to KSh64 billion since the outbreak of the pandemic. The restructured facilities represent 42% of DTB’s loan book. Earlier this month, the Bank and the International Finance Corporation announced a financing agreement of US$ 50 million which the Bank will use towards funding its distressed borrowers following the COVID-19 pandemic.