Kenya’s DTB reports strongest quarterly profit at $24.6 million in Q1 2026

Kenya’s Diamond Trust Bank Group (DTB Group) posted its strongest quarterly profit on record in the first quarter of 2026, supported by higher interest income and steady growth in its core lending business, even as rising loan-loss charges weighed on earnings.

The Nairobi-based lender, led by Kenyan banking executive Nasim Devji, posted a net profit of KSh3.18 billion ($24.6 million) for the first quarter ended March 2026, up from KSh2.85 billion ($22 million) a year earlier. The result reflects continued earnings strength across East Africa’s banking sector, supported in part by lower funding costs following the Central Bank of Kenya’s easing cycle, which has helped improve lending margins for commercial banks.

Lending dominates quarterly income mix

Interest income rose to KSh16.16 billion ($124.94 million) from KSh14.65 billion ($113.3 million), helping offset a slight decline in non-interest revenue, which fell to KSh2.92 billion ($22.6 million). Fees and commissions from loans and advances increased modestly to KSh610.84 million ($4.72 million), while foreign exchange trading income normalized to KSh744 million ($5.75 million) after the prior period’s elevated gains linked to shilling volatility.

Net interest income accounted for 77.4 percent of total gross income during the quarter, the highest proportion recorded by the group, underscoring the growing reliance on lending activity as the main earnings driver. The shift comes as currency trading gains stabilized following the sharper exchange-rate movements seen in 2023 and 2024.

Profit growth, however, was tempered by a sharp rise in loan loss provisions, which climbed 152 percent to KSh2.23 billion ($17.23 million), the highest quarterly charge in the group’s history. Gross non-performing loans rose slightly to KSh40.8 billion ($315.2 million) from KSh39.69 billion ($306.6 million) a year earlier, pointing to continued pressure in parts of the credit book even as broader asset quality trends remain manageable.

DTB expands East Africa branch network

Under the leadership of Kenyan banking executive Nasim Devji, DTB Group has continued to consolidate its regional footprint across East Africa. The lender operates 88 branches in Kenya, 29 in Tanzania, and 36 in Uganda, while expanding its use of digital banking platforms for both retail and corporate customers.

Customer deposits increased 10.4 percent to KSh660.9 billion ($5.1 billion), while net loans rose to KSh323.6 billion ($2.5 billion), reflecting sustained demand for credit across retail and corporate segments. Total assets expanded to KSh660.93 billion ($5.1 billion) from KSh595.14 billion ($4.6 billion), while total equity rose to KSh117.69 billion ($910 million), supported by retained earnings, which climbed to KSh74.66 billion ($576.8 million).