DIAMOND TRUST BANK HALF YEAR 2011 ANALYSIS

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Today morning Diamond Trust Bank Kenya Group (DTBK) announced its financial results for the Half Year ending June 30^th 2011

Profit Before Tax rose by 20.8% to hit Kshs. 2.1 Billion. Profit After Tax was up 15.2% to Kshs. 1.34 Billion

Earnings Per Share though was down 4% to Kshs. 6.84/= from Kshs. 7.12/= as a result of the 1:5 bonus that DTBK issued to shareholders. This increased the number of issued shares to 195,644,530.

Subsidiaries in Uganda, Tanzania and Burundi contributed Kshs. 158 Million to the Profit After Tax, almost 12% of the total profit. They plan to have at least 100 branches across East Africa by the end of 2013

Overall, this is a very polished performance from DTBK.

The bank treated us to the same level of efficiency that we have seen from it in the past. Cost:Income ratio was down 2.8% to stand at 51.4%, by far the lowest of the NSE listed banks which have released their Half Year results.

H1 2010 vs. H1 2011 Analysis

	H1 2010  Kshs.	H1 2011  Kshs.	% CHANGE
TOTAL ASSETS	76 BILLION	94.4 BILLION	+24.2%
NET LOANS AND ADVANCES	48.2 BILLION	63.7 BILLION	+32%
CUSTOMER DEPOSITS	61.7 BILLION	76 BILLION	+23.1%
LOAN:DEPOSIT RATIO	78.1%	83.8%	+5.7%
TOTAL INTEREST INCOME	3.6 BILLION	4.1 BILLION	+14.7%
TOTAL INTEREST EXPENSE	1.4 BILLION	1.18 BILLION	-15.9%
NET INTEREST INCOME	2.2 BILLION	2.95 BILLION	+34.3%
TOTAL OPERATING INCOME	3.7 BILLION	4.2 BILLION	+13.9%
TOTAL OPERATING EXPENSE	2 BILLION	2.2 BILLION	+8.1%
COST:INCOME RATIO	54.2%	51.4%	-2.8%
NET NON PERFORMING LOANS	149 MILLION	38 MILLION	-74.5%
PROFIT BEFORE TAX	1.7 BILLION	2.1 BILLION	+20.8%
PROFIT AFTER TAX	1.16 BILLION	1.34 BILLION	+15.2%

Customer Deposits was up 23.1% to Kshs. 76 Billion.

The increased deposit base allowed DTBK to advance more loans to customers. Net Loans and Advances was up 32% to Kshs. 63.7 Billion

Foreign Exchange Income was up 15.5% to Kshs. 421 Million

Total Fees and Commissions surged by 40.3%, from Kshs. 485 Million to Kshs. 681 Million

Interest Expenses was down 15.9%

Staff Costs registered an increase of 10.2% to 832.3 Million

 

Q1 2011 vs. Q2 2011 (Quarter on Quarter Analysis)

	Q1 2011          Kshs.	Q2 2011          Kshs.	% CHANGE
TOTAL INTEREST INCOME	1.9 BILLION	2.2 BILLION	+14.4%
TOTAL INTEREST EXPENSE	561.2 MILLION	619.3 MILLION	+10.4%
NET INTEREST INCOME	1.36 BILLION	1.58 BILLION	+16.1%
TOTAL OPERATING INCOME	2 BILLION	2.2 BILLION	+8.1%
TOTAL OPERATING EXPENSE	1.15 BILLION	1.02 BILLION	-11.5%
COST:INCOME RATIO	56.7%	46.4%	-10.3%
PROFIT BEFORE TAX	879.5 MILLION	1.18 BILLION	+33.8%
PROFIT AFTER TAX	520 MILLION	818 MILLION	+57.3%

If you look at DTBK’s Cost:Income for Q2 2011 only, it falls further to 46.4%

Coupled with the fact that it made significantly more in profits in Q2 2011 than it did Q1 2011, this makes for a very impressive 2^nd Quarter of the Year

The Bank made 57.3% more in Profit After Tax in Q2 2011 than in Q1 2011

As at 12.45 p.m. the share is down 4.76% and is now at Kshs. 100/=

This gives DTBK a Forward P.E of 7.31