Diamond Trust Bank (DTB) delivered solid financial performance in the first half of 2025, posting a net profit of Ksh4.7 billion a 9.7 percent increase from Sh4.3 billion a year earlier. The growth was driven by a strategic reduction in funding costs and robust expansion of its loan book.
A key contributor to DTB’s improved bottom line was the 10.8 percent drop in the cost of funds, which amounted to Ksh13.5 billion compared to Ksh15.1 billion during the same period in 2024. This reduction came amid increased customer savings, which rose 11.8 percent to Ksh483 billion.
Net interest income climbed by 11.7 percent, reaching Sh15.8 billion. This upswing was largely driven by the cheaper cost of funds and a Sh16 billion reduction in borrowed funds over the past year.
DTB’s loan book expanded by 7.7 percent to Ksh288 billion, up from Ksh267 billion, helping sustain interest revenue even with a Ksh700 million decline in income from government securities.
Investment analysts applauded the bank’s loan book performance, especially considering a softer lending environment overall in the banking sector. Sterling Capital described the growth as “commendable,” noting that it helped DTB stave off declines in interest income that peers experienced due to lower yields on interest-bearing assets.
Customer base expansion also featured prominently in DTB’s success. The bank’s chief finance officer, Alkarim Jiwa, reported a surge in digital adoption, stating that customer numbers jumped from 1.9 million to 4.1 million a 120 percent increase thanks to compounded investment in digital platforms and branch network expansion.
Digital platforms accounted for 92 percent of transaction volumes in the first half of the year, up from 87 percent previously, reflecting a clear shift toward online banking while maintaining physical branches to reach underserved areas.
Regionally, DTB’s subsidiaries in Uganda, Tanzania, and Burundi contributed Ksh1.1 billion or 24.5 percent to the group’s net profit, underscoring the bank’s growing East African footprint.
Although non‑interest income fell by 5 percent due to a stable shilling dampening forex trading gains, the bank mitigated the impact through a 55.4 percent jump in other income, driven by trading gains from its bond portfolio.
In summary, DTB’s half-year results reflect a successful balancing act: lower costs, effective digital strategy, and disciplined regional growth helped counter pressure from weaker non-interest streams. As the bank continues opening branches and rolling out digital services, it appears well-positioned to maintain momentum across East Africa’s dynamic banking sector.
Written By Ian Maleve
