DTB’s nine-month profit soars to Sh5.6Billion

DTB Group recorded a 7.1 percent jump in net earnings in the nine months ended September, helped by lower costs. The lender’s net profit in the review period stood at Sh5.6 billion compared to Sh5.2 billion the year before.

DTB’s non-interest income rose 5.7 percent to Sh4.3 billion, mostly due to a surge in foreign exchange trading income.

Its interest income meanwhile dropped 7.2 percent to Sh24.5 billion as its loan book and investments in government debt declined marginally.

The bank’s lending to customers contracted 2.8 percent to Sh192 billion while its holdings of treasuries receded 1.1 percent to Sh97.5 billion. Interest rates on government bonds have trended downwards in the past few years as banks flocked to the fixed income securities in the wake of the rate caps that were recently scrapped.

Removal of the lending controls is expected to incentivize banks to lend more to the private sector, having the discretion to charge relatively higher rates on loans to riskier borrowers.