Diamond Trust Bank plans for rights issue
Diamond Trust Bank has announced plans to raise additional capital by offering 24.5 million shares through a rights issue.
The money will be used to fund the bank’s expansion plans, which will see it increase its branch network in Kenya, Uganda, Tanzania and Burundi, where it is currently operating.
“Raising additional capital through the rights issue is aimed at funding the bank’s plans to explore opportunities that will strengthen its presence in East Africa, through its subsidiary banks, as well as investment opportunities in other markets in the region over the medium-term,” said Abdul Samji, chairman of the DTB group in a statement accompanying its full-year financial results.
The offer, at a ratio of one for every eight shares currently held, is subject to approval by the regulators and shareholders. The timetable and subscription price will be announced later.
The rights issue will be the third by the bank after previous issues in 2006 and 2007, which were oversubscribed.
Diamond Trust Bank also announced a 21 per cent increase in after tax profit in 2011.
It posted Sh2.99 billion up from Sh2.48 billion posted in 2010. The rise in profits was attributed to increase in customer deposits and a significant expansion of the loan book.
Loan advances
In 2010 the bank held Sh66 billion in customer deposits and closed 2011 at Sh86 billion with loan advances growing by 37 per cent to Sh71 billion.
Total operating income for the group rose to Sh9.5 billion in 2011, up from Sh7.7 billion in the same period in 2010.
