Kenyan Listed Banking Sector Quarterly Earnings and Operating Metrics
DTBK's Summary of Performance - Q3'2022
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Profit before tax and exceptional items rose by 20.2% to Kshs 8.9 bn, from Kshs 7.4 bn in Q3'2021, with the effective tax rate increasing to 38.3% in
Q3'2022, from 34.0% seen in Q3'2021. Similarly, the bank recorded a 21.1% increase in profit after tax to Kshs 6.3 bn in Q3'2022, from Kshs 5.2 bn in
Q3'2021
Total operating income rose by 21.3% to Kshs 23.7 bn in Q3'2022, from Kshs 19.5 bn in Q3'2021 mainly driven by an 14.1% increase in Net Interest
Income (NII) to Kshs 16.8 bn, from Kshs 14.7 bn in Q3'2021 coupled with a 43.5% growth in Non-Funded Income (NFI) to Kshs 6.9 bn, from Kshs 4.8 bn in
Q3'2021
Total operating expenses increased by 21.5% to Kshs 14.7 bn in Q3'2022, from Kshs 12.1 bn in Q3'2021, largely driven by an 20.0% increase in staff costs
to Kshs 4.4 bn, from Kshs 3.6 bn in Q3'2021 coupled with a 17.3% increase in other operating expenses to Kshs 6.3 bn, from Kshs 5.4 bn in Q3'2021,
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The balance sheet recorded an expansion as total assets grew by 16.8% to Kshs 507.5 bn in Q3'2022, from Kshs 434.4 bn in Q3'2021
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The Bank's asset quality deteriorated, with the NPL ratio increasing to 12.7% in Q3'2022, from 11.9% in Q3'2021, owing to the 28.1% growth in gross
non-performing loans, which outpaced the 18.5% increase in net loans and advances to Kshs 243.7 bn, from Kshs 205.6 bn in Q3'2021
Going forward, we expect the bank's growth to be driven by:
Digitization: Through its agile digital platforms, the bank has been able to have majority of the bank's transactions done through mobile transactions.
Additionally, Kshs 3.5 bn is geared to be invested in digital transformation in 2022-2024 with Kshs 2.4 bn already invested in 2018-2021. The
continued leverage on technology to improve customer experience is expected to expedite service delivery to its customers
Cytonn
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