DTB to expand to five nations after share sale

DTB Group has announced plans to enter five new markets in East, Central and Southern Africa.

The mid-tier lender said Rwanda, Democratic Republic of Congo, Mozambique, Madagascar and South Sudan have been identified as potential growth markets. This is after the bank posted a 10 per cent increase in after-tax profit in the half year to June.

“In the next 15 months, we should be in either Democratic Republic of Congo or Madagascar, as a first step, while the rest will follow,” DTB managing director Nasim Devji said at an investor briefing.

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DTB has 104 branches in Kenya, Uganda, Tanzania and Burundi. It had 91 branches in the first six months of 2013.

The lender recorded an after-tax profit of Sh2.94 billion, up from Sh2.67 billion over a similar period in 2013, riding on a double digit growth in its loan book and customer deposits.

The loan book grew by 27 per cent to Sh120 billion while customer deposits closed the period at Sh136 billion, from Sh113 billion the previous period.

The six-month performance was due to an increase in customers across the region, and an increase in lending, Ms Devji said.

Net interest income for the bank also grew by 19 per cent to Sh6.1 billion, from Sh5.1 billion, in response to the expansion in the loan book.

Overall, the balance sheet grew by 26 per cent to Sh180 billion from Sh142.7 billion in 2013.

The bank has just finalised a rights issue that was oversubscribed by 340 per cent and whose proceeds are expected to fund East African growth.

It had sought to raise Sh3.6 billion additional capital from its shareholders but the offer attracted bids worth Sh16 billion.