Diamond Trust Bank (DTB) stakeholders will not benefit from a 21% increase in the Group’s earnings per share. According to a press release from the company, the Board of Directors will not compensate the shareholders with an interim dividend for this announcement period.
“Shareholders should not worry about dividends. They should expect some returns when DTB announces its results again later this year.” said Samora Kariuki, a research analyst at NIC Securities. DTB’s General Manager, Alkarim Jiwa said that the DTB intends to raise money to fund its recent expansion to other parts of the continent. The company plans to open new branches in Mozambique, South Sudan and Rwanda among others.
DTB’s Group and Bank results for the half year ended June 2012 appear to be positive. The Group reported a 23% increase in profit after tax. This was a net profit of KES 1.9 billion up from KES 1.4 billion. Earnings per share rose 21% at KES 8.68 per share up from KES 6.84 in June 2011.
The Bank’s profit after tax also rose to KES 1.4 billion from KES 1.1 billion the previous year.