After Diamond Trust Bank (DTB), emerged top in the ‘Best Bank In Customer Satisfaction’ category beating Equity Bank and Commercial Bank of Africa (CBK) in the Think Business Banking Awards Kenya gala, it is no surprise that, “This transformational journey is anchored on DTB evolving as a regional, omnichannel bank that is centred on providing a seamless banking experience to its customers,” was the Bank’s response in it’s latest annual report.
Diamond Trust Bank (DTB) Group has invested an additional 10.9 million in its Ugandan unit, raising its stake in the subsidiary.
The NSE listed firm participated in DTB Uganda’s rights issue in April that raised a total of $13.9 million.
DTB, which previously held a 56.97 per cent stake in the subsidiary, did not say to what level its equity had jumped after the cash call.
The move comes soon after the lender invested a similar amount to participate in a rights issue at its Tanzanian subsidiary where it acquired an extra 2.75 per cent stake after taking up shares worth $1.7 million left by a section of minority investors.
This saw its interest in the subsidiary rise to 65.68 per cent from the previous 62.93.
“The reason for the investments is to allow the subsidiaries to grow and meet higher capital requirements that have been announced in the two markets,” said Alkarim Jiwa, the chief financial officer at DTB.
The company is the latest Kenyan multinational bank to raise its investment in regional subsidiaries, with NIC Bank also disclosing it provided $3.7 million of capital to its Ugandan unit last year to boost its capital ratios.
The capital injections will see DTB claim a larger share of the subsidiaries’ assets and future earnings, with the company keen on growing its presence in the East African region.
DTB plans on expanding to other African markets in the next three years, seeking entry into Rwanda, South Sudan, Democratic Republic of Congo, Mozambique and Madagascar.
DTB Tanzania made a net profit of $9.3 million last year while that of Uganda stood at $8 million in the same period. The lender’s Burundi unit had a net profit of $550,202, with the regional units boosting DTB’s total earnings.
The parent company posted a 15.6 per cent growth in net profit for the year ended December, helped by higher income from lending and transaction charges.
In Summary, DTB is doing well.