Diamond Trust Bank Kenya Ltd. · NSEKE:DTK
Diamond Trust Bank Kenya — H1 2024 Earnings Presentation
26 slides from Diamond Trust Bank Kenya's earnings presentation, 2024
Slide 1: H1 2024 Investor Presentation
H1 2024 Investor Presentation Driving Socio-Economic Relevance DTB Investor Presentation – H1 2024 1 |
Slide 2: Operating Environment Remained Challenging In Our Presence Markets
Operating Environment Remained Challenging In Our Presence Markets ✓ The region is on course for +5.0% ✓ Interest rates backed GDP Growth (%) 91-Day T-bill yield (%) growth in 2024 driven by agriculture inflation trends across our and service sectors. presence markets. 5.6 16.0 ✓ After the FX volati
Slide 3: Operating Environment: Strong Prospects Despite Increased Headwinds
Operating Environment: Strong Prospects Despite Increased Headwinds Kenya Tanzania Uganda ✓ Sustained economic resilience driven by ✓ Relatively strong real GDP growth ✓ GDP growth supported by increased agriculture, but climate risks are underpinned by decent public household spending, FDIs to the
Slide 4: DTB Group: Strengthening Presence in Growth Markets
DTB Group: Strengthening Presence in Growth Markets Customers (million) Branches UGANDA Branches 36 KENYA 2.02 157 ATMs 55 1.45 Employees 668 Branches 87 152 Customers 247,234 ATMs 79 1.18 y/y Employees 1,530 +72% 145 Y/Y Customers 467,149 +8% JUL-23' DEC-23' JUL-24' JUL-23' DEC-23' JUL-24' BURUNDI
Slide 5: Leveraging successes of DTB Vision 2020: Pivoting From DTB 1.0 To DTB 2.0
Leveraging successes of DTB Vision 2020: Pivoting From DTB 1.0 To DTB 2.0 ➢ DTB 1.0: Mid-1940s to mid-2000s – Operated as a niche player in all three home markets (Ke, UGANDA Tz, Ug); Tier II player KENYA DTB 2.0: DTB Vision 2020 (2011-2020) ➢ Rank among the top tier banks by deposits. ➢ Be a sustai
Slide 6: Market Share & Ranking has Pivoted Favourably in Our Presence Markets
Market Share & Ranking has Pivoted Favourably in Our Presence Markets 7 7 6.2% 9 9 8 5.9% 12 5.1% 5.2% 9 11 11 5.1% 10 11 4.3% 12 3.7% 3.5% 3.6% 3.1% 2.6% 3% UGANDA KENYA TOTAL ASSETS CUSTOMER ADVANCES TOTAL ASSETS CUSTOMER ADVANCES DEPOSITS DEPOSITS BURUNDI 10 TANZANIA 7 1.80% 3.9% 8 9 8 10 9 9 3.0
Slide 7: Accelerating growth with DTB 3.0 - A New Business Growth Strategy
Accelerating growth with DTB 3.0 - A New Business Growth Strategy Our mission Informed Our purpose Our vision To make our customers prosper, our by To improve the quality of lives of all our Enabling people to advance with staff excel and create value for our stakeholders in a sustainable and impact
Slide 8: Customer Reach: Significant Milestone in Our Strategy Execution
Customer Reach : Significant Milestone in Our Strategy Execution No. of Customer '000' 3200 YTD +39% New customers YTD 2019 +565K 1453 877 571 2021 2022 2023 JUL-24 2024F Existing Business Model New Focus Sectors Partnerships ✓ Leverage position as leading SME bank ✓ Education, Agriculture, Public ✓
Slide 9: New ecosystems adding impetus to customer and Balance Sheet Growth
New ecosystems adding impetus to customer and Balance Sheet Growth AGRICULTURE PUBLIC SECTOR EDUCATION ✓ Tea, Sugarcane, Coffee & ✓ Opened 35+ public sector ✓ Focus on private education Horticulture accounts since 2023 with institutions ✓ 40+ tea & coffee companies 66% being county accounts ✓ 1500+
Slide 10: Branches Supporting Growth in Customer Base & Improved Experience
Branches Supporting Growth in Customer Base & Improved Experience Branches No of Branches 152 157 138 126 UGANDA 2005 1 KENYA 2010 18 68 2015 37 2005 5 2020 37 2010 34 2024 37 2015 55 8 2020 69 2024 87 2005 2010 2015 2020 2023 JUL-2024' Source: DTB BURUNDI Human Touch Reach Advisory Convenience Bran
Slide 11: Accelerating and Enhancing Customer Journeys Through Digital Transformation
Accelerating and Enhancing Customer Journeys Through Digital Transformation 1. 40 SMEs, 500 wallets on our SME business solution InfinitiPay launched in February 2024 Pillar 1: 2. Integrations to Government departments and County Governments for enablement of collection Digital Customer services e.g
Slide 12: Sustainability Excellence: Accelerating Sustainable and Impact Investments
Sustainability Excellence: Accelerating Sustainable and Impact Investments Pillar 2 Pillar 5 Pillar 1 Partnerships Sustainable financing Climate action & net zero • Member of the UN Global Compact. • To grow DTB’s green portfolio from 5.3% currently • Grow 16 million trees, in the region, by 2030 •
Slide 13: Resilience & Growth: 1H 2024 Financial Outcomes
RESILIENCE & GROWTH 1H 2024 FINANCIAL OUTCOMES DTB Investor Presentation – H1 2024 13 |
Slide 14: H1 2024 Group Financial Performance Summary
H1 2024 Group Financial Performance Summary Operating Income KES 20.6 billion 10% Profit Before Tax Net Interest Income KES 6.3 billion 4% KES 14.2 billion 8% Fee Income Operating Costs Profit After Tax KES 6.4 billion 15% KES 10.6 billion 12% KES 4.9 billion 12% Customer L&A KES 267.9 billion 5% To
Slide 15: Strong Balance Sheet Growth Despite Tough Operating Landscape
Strong Balance Sheet Growth Despite Tough Operating Landscape H1’24 Performance (KES billion) Performance Highlights Balance Sheet H1 24 H1 23 FY' 23 YOY ▪ Asset growth: Assets Muted growth in assets Balances due from Central Banks 34.6 23.9 38.0 44.9% a. Reduced lending due to foreign exchange reva
Slide 16: Deposits Backed Industry Trend Reflecting Gains from the Growth Strategy
Deposits Backed Industry Trend Reflecting Gains from the Growth Strategy Customer deposits (KShs Bn) ▪ Resilience in the deposit base reflects gains from customer growth across the group. ▪ Subsidiaries contribution to deposits +3.3% 432 increased from 36% to 40%. 418 40% Proportion of assets in sub
Slide 17: Strong Balance Sheet Despite Tough Operating Landscape
Strong Balance Sheet Despite Tough Operating Landscape Net Loans & Advances Investment in government Total assets (KShs Bn) (KShs Bn) securities (Kshs Bn) ▪ Growth of DTB in markets outside 586 281 Kenya has resulted in strength and -4.7% 212 -10.7% diversity across important metrics. +1.1% 268 189
Slide 18: Group: Quality Improving Despite Heightened Credit Risks
Group: Quality Improving Despite Heightened Credit Risks NPA Ratio Evolution (%) Group NPA Coverage Ratio (%) 15.6 16.3 14.1 44.2 13.8 13.0 13.1 12.3 43.3 11.4 40.7 3.5 3.4 2.8 2.5 39.4 FY 2021 FY 2022 FY 2023 H1 2024 FY 2021 FY 2022 FY 2023 H1 2024 Kenya Industry NPA Ratio Group NPA Ratio Group COR
Slide 19: Quality Concerns Not broad-based – Accounts Responsible for 80% of NPAs
Quality Concerns Not broad-based– 18 Accounts Responsible for 80% of NPAs H1 2024 Group NPA Distribution (amounts and percentage) 12.5 8.4 7.0 6.2 3.6% 1.2% 0.02% 2.7% 2.6% 33.0% 22.1% 18.5% 16.3% 1.4 1.0 1.0 0.4 0.01 Tourism and Wholesale and Manufacturing Individuals Construction and Agriculture O
Slide 20: Group NPL Classification, Provisions and Concentration
Group NPL Classification, Provisions and Concentration Loan Staging KShs. Billions Provisions KShs. Billions 331 312 288 22 271 20 21 18 14 5 5 4 287 4 240 275 251 3 15 18 16 11 14 31 37 43 37 FY 2022 H1 2023 FY 2023 H1 2024 2021 2022 H1 2023 2023 H1 2024 Stage 3 Stage 1& 2 Total Stage 3 Stage 1& 2
Slide 21: Strong Profitability in a Tough Operating Environment
Strong Profitability in a Tough Operating Environment FY'23 Performance (KES billion) Performance Highlights Income Statement H1' 24 H1' 23 FY' 23 YOY • Operating profit grew by 8.2% (KShs 0.8 billion) driven by: Net Interest Income 14.2 13.1 27.6 8.3% ➢ Improved net interest income on the back of T
Slide 22: Subsidiary Contribution to Group PBT
Subsidiary Contribution to Group PBT Subsidiary contribution to PBT (KShs Bn) 21% ➢ Subsidiary contribution to PBT improved to 35% in H1 2024 from 1.3 23% in H1 2023 reflecting enhanced performance by the Tanzania franchise due to; 13% ✓ Improved NII underpinned by 0.8 10% improved yields. 0.6 ✓ Inc
Slide 23: Improved Margins driven by Higher Yields & Cost of Funds Management
Improved Margins driven by Higher Yields & Cost of Funds Management Cost of Deposits Yield on Loans 6.2% 11.5% 5.1% 9.5% H1 2023 H1 2024 H1 2023 H1 2024 ❑ Improved yield on loans mirrors ❑ Increase in cost of deposits reflects the surge in adjustments in lending rates in line with yields on G-secs a
Slide 24: Improved Earnings Per Share & Returns to Shareholders
Improved Earnings Per Share & Returns to Shareholders Earnings Per Share (EPS) Return On Equity (ROE) +8.6% 11.30% 11.60% 15.54 9.60% 14.30 H1 2023 H1 2024 H1 2023 FY 2023 H1 2024 DTB Investor Presentation – H1 2024 24 |
Slide 25: Disclaimer
DISCLAIMER This investor presentation has been prepared for information purposes only and is not and does not form part of any offer for sale or solicitation of any offer to subscribe for or purchase or sell any securities nor shall it or any part of it form the basis of or be relied on in connectio
Slide 26: Bank with us. Bank on us.
Bank with us. Bank on us. DTB Investor Presentation – H1 2024 26 |
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