Diamond Trust Bank (DTB) posted a 15.6 per cent growth in after-tax profit for the year ended December 2015, helped by higher income from lending and transactions.
The lender’s net earnings in the period stood at Sh6.5 billion, up from Sh5.7 billion the year before.
DTB declared a dividend of Sh2.5 per share, raising it from the previous Sh2.4 per share.
The bank has also proposed the issuance of bonus shares at a rate of one share for every ten held. The new shares will not qualify for the dividend which is expected to be paid on June 12.
DTB’s interest income rose 24.1 per cent to Sh25.8 billion as the loan book expanded 28.9 per cent to Sh177.5 billion.
Other income, including fees on transactions, increased 24.4 per cent to Sh4.7 billion.
The bank raised its loan loss provision to Sh2.1 billion from Sh871 million as the stock of bad debts jumped 172.5 per cent to Sh4.9 billion.
DTB also saw a rise in interest expenses to Sh10.6 billion from Sh8 billion, reflecting the impact of higher interest rates and a 20.5 per cent growth in customer deposits to Sh194 billion.
