Kenya: DTB boosts dividend amid Sh6.8bn profit growth

Diamond Trust Bank (DTB) Group has raised its dividend payout to a record of Sh6 per share for the year ended December, marking a significant increase from the prior year’s dividend of Sh5 per share. This decision comes as the company’s net profit grew by 13.4 percent to Sh6.8 billion, driven by higher interest and transaction-based income.

The new dividend, totaling a payout of Sh1.6 billion, will be distributed on June 28 to shareholders who are on record as of May 24. This represents a payout of 24.3 percent of the net income in the review period, up from 23 percent in the previous year when the lender posted a net profit of Sh6 billion.

DTB had previously announced its intention to implement incremental dividend payouts, reflecting a higher percentage of rising earnings.

The payout ratio has increased from 21.4 percent in 2021, when the dividend per share was Sh3 and the net income stood at Sh3.9 billion.

“Going forward, we will continue to progressively increase the dividend payout ratio, on the back of an improving performance by your bank as well as ensuring that there is an equitable balance between rewarding shareholders and conserving capital to fund the ambitious growth aspirations of the Group,” DTB said in its 2022 annual report.