Diamond Trust Bank (DTB) has announced that it has reported a Ksh. 2.6 billion net profit for the half year ended 30th June 2020. This marks a reduction from the Ksh. 4.1 billion that the bank registered in the same period in 2019.

The company blamed the reduced profit on increased provisions due to the higher credit risk environment following the COVID-19 pandemic.

Total operating income increased to Ksh. 12.4 billion from 12.1 billion in the same period in 2019. Total operating expenses increased to Ksh. 7.9 billion from Ksh. 6.2 billion in 2019

DTB Group CEO and Managing Director Nasim Devji said: “Across the banking industry, we are operating in very tough times and share the hope that as a country we will soon be out of this crisis. At DTB, most of our customers are in the Small and Medium Enterprises segment and they are facing perhaps the toughest period they have ever gone through. 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,” Ms Devji added.

The Bank’s total operating income increased by 2% to Ksh. 12.4 billion in the period compared to Ksh. 12.2 billion in June 2019. The non-funded income grew by 6% to Ksh. 3.2 billion from Ksh. 2.9 billion.

During this period, DTB’s non-branch transactions rose significantly to 87% up from 81% 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% to Ksh. 388.3 billion, funded by customer deposits and existing business growth. Net loans and advances grew 6% to close the period at Ksh. 201.5 billion.

Shareholders’ equity grew 7% from Ksh. 56.9 billion to Ksh. 61.0 billion. This was driven by the growth in retained earnings over the 12 month period to June 2020.