Listed Tier 1 lender Diamond Trust Bank (NSE: DTK) has reported a 21% year-on-year growth in profit after tax to KES 10.7 billion for the year ended December 31, 2025. The strong earnings growth was supported by a decline in interest expenses and prudent cost management across the franchise, which helped mitigate growth in operating expenses.
Interest expenses declined by 16% to KES 26.1 billion, consequently lifting net interest income by 23.8% to KES 34.8 billion. The decline in interest expenses was primarily driven by falling interest rates, which saw the lender cut rates paid on deposits. Conversely, non-interest income fell by 9.1% to KES 11.8 billion.
DTB’s balance sheet strengthened during the period. Total assets rose sharply by 14.9% to KES 659.1 billion. Customer deposits crossed the KES 500 billion mark to reach KES 509.1 billion, up 13.9% year-on-year. DTB’s loan book expanded 13.6% to KES 324.2 billion from KES 285.3 billion in FY2024. DTB attributed the growth to expansion in its customer base. The bank’s customers reached 4.5 million as of December 31, 2025, from 3.1 million earlier.
Similarly, total equity rose sharply by 23.6% to KES 101.1 billion, reflecting the bank’s strong capital base and long-term financial resilience.
DTB Declares a Bumper Dividend
The Group’s Board of Directors recommended a total dividend of KES 9.00 per share, up 28.6% from KES 7.00 per share in FY2024. The increased payout highlights the bank’s commitment to delivering sustainable shareholder returns. At an EPS of KES 33.65, this translates to a payout ratio of 26.7%, up from 25.6% a year earlier. The dividend yield is 5.9% based on the current share price of KES 153.25.
Improved asset quality
The lender’s Gross non-performing loans rose marginally by 3.2% to KES 39.1 billion. However, the non-performing loans ratio eased to 10.8% from 12.3% in FY2024, underscoring an improved credit environment. The Group’s specific coverage ratio improved to 51.1% from 39.6%.
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