DTB PROFIT UP IN 2016

DIAMOND Trust Bank Tanzania (DTB) made a pretax profit of 31bn/- last year up from 27.3bn/- in 2015 after containing nonperforming loans.

The bank, which also operates in Kenya, Uganda and Burundi, said yesterday prudential credit process has contained the nonperforming loans ratio to 2.6 per cent of the total credit book compared to the industry’s current ratio of 9.5 per cent.

Total assets increased to 984bn/- in 2016 from 900bn/- achieved in 2015, while advances to customer jumped to 565bn/- from 536bn/-, the total-nonperforming assets of 15.5bn/- were adequately covered by the total provision of 23bn/- in addition to securities in the previous year, an increase of 27 per cent.

Net Interest Income (NII) grew by 29 per cent from 48bn/- to 63bn/- in 2016 the growth was boosted by higher investment in government securities which stood at 201bn/- at the end of 2016 compared to 158bn/- in the previous year.

DTB, Chief Financial Officer, Mr Joseph Mabusi, told reporters in Dar es Salaam that as per unaudited published results, the pre-tax profit for the banking industry increased marginally by around 0.38 per cent.

“If we compare figures in the industry there is a decline of 2.07 per cent but the bank customers deposit base grew by 9 per cent from 737bn/- to 800bn/- at the end of 2016,” he noted.

Mr Mabusi further said the banks double digit growth was a testimony as majority of the banks grew in single digit. DTB, Country Manager and Chief Executive Officer, Mr Viju Cherian, said in recognition of the vast geographical location of Tanzania and quest to reach customers beyond the existing branch network, the bank has embarked on a project to unveil agency banking.

“The network will increase the banks footprint while taking financial services closer to people especially those in grassroots, the initiative is slated for roll out in July this year, we currently have 26 branches in Tanzania,” he said