DTB records an 11 percent profit jump

DTB Group says it recorded a 10.9 percent growth in earnings in the first quarter ended March.

This was due to higher income from lending and transactions.

The bank’s net profit stood at Sh2.4 billion in the review period, rising from Sh2.1 billion the year before.

Total interest income increased 32 percent to Sh12.1 billion as earnings from ordinary loans and investment in government debt securities went up.

DTB’s loan book expanded 20.2 percent to Sh270.3 billion while its holdings of government bonds and T-bills declined by Sh5.8 billion to Sh131.6 billion.

The firm is among the lenders that have reduced their investment in treasuries in favour of increased lending to the private sector.

The strategy is aimed at raising their interest income besides reducing the risk of paper losses that face holders of fixed-income securities in a rising interest rates environment.

The bank also benefitted from a 59 percent surge in non-interest income to Sh2.8 billion, with notable contributions from multiple sources including foreign exchange trading.

DTB’s revenue from forex transactions nearly doubled to Sh1.4 billion, joining other lenders that have also recorded strong growth in this business line.

Banks have benefitted from the volatility in the forex markets, with the weakening of the shilling prompting businesses and individuals to initiate more transactions as they stock up on hard currencies.

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