15 August 2014

Kenya: DTB Narrows Expansion On DRC and Madagascar

DIAMOND Trust Bank said yesterday it was conducting feasibility studies in Madagascar and DRC with a view to setting up operations in one of them over the next 15 to 18 months.

The two are part of the five markets - including Rwanda, South Sudan and Mozambique - that the mid-tier lender has earmarked for expansion in the medium to long term.

DTB has gained a financial muscle for its expansion plan after its cash call that ended July 25 raised Sh3.6 billion after being oversubscribed by 344 per cent.

Habib bank, Pakistan's largest bank by assets, is one of the shareholders thought to have taken up all their rights after it announced desire to raise its stake to 26 from 11.68 per cent after setting aside Sh3.6 billion for an equivalent of 31.5 million shares.

DTB, majority owned by the Aga Khan Fund For Economic Development, has meanwhile announced a 10.1 per cent jump in half year net earnings to Sh2.94 for the period ended June 30 from Sh2.67 billion a year ago.

"This growth was as a result of our continued expansion in customer base and increased revenue from our subsidiaries in Uganda and Tanzania," general manager for finance nad planning Alkarim Jiwa told a press conference yesterday in Nairobi.

Deposits were up 20.6 per cent to Sh136.36 billion while loans rose 25.4 per cent to Sh120.20 billion, returning a net interest of Sh6.06 billion- a 19.3 per cent jump over Sh5.08 billion previously.

Alkarim said the ratio of bad debt to total loans was a favourable 1.1 per cent and was expected to remain steady in the second half of the year based on risk analysis.


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