- The lender said its earnings for the current financial year will be affected by the negative effect of the pandemic on the global economy.
- The lender reported a 28 per cent year-on-year drop in net profit in its Q3 2020 results to Sh 4.3 billion.
Negative effects of Covid-19 will see Diamond Trust Bank (DTB) Kenya's profits for the year ended December 31 drop by at least 25 per cent compared to 2019, the lender has said.
In a statement, the lender said its earnings for the current financial year will be affected by the negative effect of the pandemic on the global economy.
This impacted trade flows and created uncertainty in the export, hospitality, real estate, aviation, tourism and agribusiness sectors.
“It is against this backdrop that the Board of Directors wishes to announce that DTB’s earnings for the current financial year are expected to be substantially lower than the earnings reported for the same period in 2019,” read the statement.
This is primarily due to an increase in impairment provisions in light of the pandemic as well as an increase in restructured and delayed loan repayments as the impact of the pandemic on customers intensified during the year.
The lender reported a 28 per cent year-on-year drop in net profit in its Q3 2020 results to Sh 4.3 billion.
The drop was largely driven by a 232 per cent increase in loan loss provisions which moved to Sh2.9 billion from Sh870 million in the third quarter of 2019.
The lender has however assured that it will continue to support its customers through increased lending, development of new products, and expansion of its existing products, services and channel suite that can be accessed digitally.
To cushion its customers, DTB has granted loan relief and restructured loans to enable them to manage their personal needs, day-to-day capital working capital requirements and deal with the stresses caused to their businesses following the outbreak of Covid-19.
The Board and management additionally remain confident in DTB’s long-term strategy that should result in improved future performance.