Diamond Trust Bank has reported a drop in its quarter three profits by 28% to Kshs 4.3 billion. The significant drop in net profits was attributed to an increase in loan loss provisions that rose by 232% from Kshs 870 million in 2019 to Kshs 2.9 billion in the period under review.
The lender reported a decline in interest income to Kshs 23.7 billion a 3.4% decline while non-interest income rose from Kshs 4.4 billion in 2019 to Kshs 5 billion in Q3 of 2020.
Despite the pandemic, DTB’s loan book expanded to Kshs 250.6 billion a 7% increase from Kshs 192 billion in Q3 of 2019. Customer deposits also grew by 18 percent to Kshs 288 billion.
Commercial banks are experiencing economic shocks due to the pandemic. This is following declining profits for Equity Bank, KCB, Cooperative Bank, and ABSA.