Lead image for DTB Group's Pre-Tax Profit Jumps 37% as Lower Funding Costs Lift Interest Income.
Diamond Trust Bank Group’s pre-tax profit jumped 37% to KSh 9.84Billion in the first half of 2026 as lower funding costs and faster lending growth lifted net interest income, while operating expenses grew at less than a third the pace of revenue.
- Gross operating income rose 20.9% to KSh 26.51Bn against a 5.9% increase in operating expenses to KSh 12.24Bn, lifting operating profit before provisions 36.8% to KSh 14.27Bn.
- The cost-to-income ratio improved to 46.0% from 52.4% a year earlier.
- The lender plans to expand to 100 branches in Kenya and 163 across East Africa by December, while increasing lending to retail, business banking and mid-corporate customers and expanding into agriculture, education and public-sector ecosystems.
The improvement was driven mainly by funded income. Net interest income increased 26.4% to KSh 20.04Bn as total interest income rose 9.9% to KSh 32.28Bn while interest expense fell 23.2% to KSh 12.23Bn. Net interest margin widened to 6.8% from 6.6%, which DTB attributed to lower deposit costs and growth in its retail and micro, small and medium enterprise portfolios.
Non-interest income grew at a slower 6.6% to KSh 6.47Bn, constrained by narrower foreign-exchange margins and a slowdown in trade business.
Loan-loss provisions rose 36.5% to KSh 4.43Bn, broadly matching the increase in operating profit before provisions. Cost of risk consequently increased to 2.7% from 2.3%. Profit attributable to shareholders rose 34.1% to KSh 6.39Bn.
DTB expanded its balance sheet alongside the earnings growth. Total assets increased 10.4% to KSh 675.09Billion, customer deposits rose 10.6% to KSh 534.15Bn and net loans grew 13.7% to KSh 327.99Bn. Gross loans increased 15% to KSh 357.6Bn, with local-currency lending accounting for 62% of the portfolio compared with 59% a year earlier.
The faster expansion in lending than deposits pushed the loan-to-deposit ratio to 61.4% from 59.3%. DTB said it is targeting smaller, stickier deposits, while the share of local-currency deposits increased to 69% from 67%.
Asset quality improved relative to the growing loan book. The Group’s non-performing loan ratio declined to 11.6% from 13.0%, while specific provision coverage increased to 56.6% from 40.7%. Stage 3 loans remained around 41 Bn compared with 40 Bn a year earlier.