Market News

DTB’s Profit After Tax Jumps By 21.1%

BY Soko Directory Team · November 25, 2022 02:11 pm

KEY POINTS

Total operating income advanced by 21.3 percent y-o-y to 23.7 billion shillings. The contribution of non-funded income to the total operating income came in at 29.0 percent from 24.5 percent in 3Q21.

KEY TAKEAWAYS

Non-funded income soared by 43.5 percent y-o-y to 6.9 billion shillings mainly due to an 80.6 percent y-o-y jump in net income from forex dealings to 3.3 billion shillings, a 35.1 percent y-o-y increase in fees and commissions on loans to 1.3 billion shillings and a 17.7 percent y-o-y rise in other fees and commissions to 1.7 billion shillings.

DTB Group released its 3Q22 results reporting a 21.1 percent y-o-y improvement in after-tax profits to 6.3 billion shillings.

The DTB’s profits were supported by a 43.5 percent y-o-y growth in non-funded income to 6.9 billion shillings and a 14.1 percent y-o-y increase in net interest income to 16.8 billion shillings. The EPS for the period stood at 20.57 shillings vis-à-vis 17.28 shillings in 3Q21.

Net interest income rose by 14.1 percent y-o-y to 16.8 billion shillings on the back of a 15.4 percent y-o-y growth in interest income to 29.0 billion shillings and a 17.2 percent y-o-y increase in interest expense to 12.2 billion shillings.

Total operating income advanced by 21.3 percent y-o-y to 23.7 billion shillings. The contribution of non-funded income to the total operating income came in at 29.0 percent from 24.5 percent in 3Q21.

Operating expenses (less loan loss provisions) increased by 18.4 percent y-o-y to 10.7 billion shillings primarily due to a 20.0 percent y-o-y rise in staff costs to 4.4 billion shillings and a 29.0 percent y-o-y increase in other operating expenses to 4.9 billion shillings. The cost-to-income ratio eased by 110 bps y-o-y to 45.2 percent.

Loan loss provisions expense rose by 30.5 percent y-o-y to 4.0 billion shillings leading to a subsequent 20 bps y-o-y increase in the cost of risk to 2.2 percent.

Cumulative loan loss provisions grew by 38.2 percent y-o-y to 13.0 BN (+5.1 percent q-o-q), placing the NPL coverage ratio at 41.8 percent, 397 bps higher y-o-y.

Gross non-performing loans went up by 28.1 percent y-o-y to 33.0 billion shillings (+3.7 percent q-o-q) as the NPL ratio edged up by 79 bps y-o-y to 11.9 percent.

Customer loans and advances inched higher by 18.5 percent y-o-y to 243.7 billion shillings (+4.3 percent q-o-q) while investment securities rose by 14.0 percent y-o-y to 179.9 billion shillings (+3.0 percent q-o-q).

On the funding side, customer deposits climbed by 11.1 percent y-o-y to 359.7 billion shillings (+3.8% q-o-q) while borrowed funds dropped marginally by 0.9 percent y-o-y to 20.1 billion shillings (-14.2 percent q-o-q).

On a trailing basis, DTB is trading at a P/E multiple of 2.7x against an industry median of 3.7x and a P/B multiple of 0.2x against an industry median of 0.7x. ROE stands at 6.9 percent while ROA stands at 1.0 percent.

Related Content: IFC To Give DTB USD 100 Million As Loan For SMEs

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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