Diamond Trust Bank Kenya Ltd. · NSEKE:DTK
Diamond Trust Bank Kenya — Investor Presentation (2024)
23 slides from Diamond Trust Bank Kenya's investor presentation, 2024
Slide 1: FY 2024 Investor Presentation
FY 2024 Investor Presentation Driving Socio-Economic Relevance DTB Investor Presentation – FY 2024 1 |
Slide 2: The operating environment continued to present opportunities & challenges
The operating environment continued to present opportunities & challenges Kenya Tanzania Uganda Burundi ✓ Healthy but slower growth of ✓ Robust and accelerated ✓ Faster growth of 6.5% in 2024 ✓ Sustained economic fragility 4.6% in 2024 growth of 5.9% in 2024 ✓ Increased FDIs to the mining despite IM
Slide 3: Accelerating growth with DTB 3.0 – Our Growth Strategy
Accelerating growth with DTB 3.0 – Our Growth Strategy So cio c e -ec an onomic relev Customer Reach Sustainability excellence To be a sustainability • 10 million customer excellence practitioner and banking with DTB by 2026 Digital Transformation thought leader • Achieve geographical and To become
Slide 4: Customer Reach: We more than doubled our customer base in 2024
Customer Reach: We more than doubled our customer base in 2024 Total number of customers UGANDA KENYA 422,268 70% 604,036 Dec 2024 3.07M 481,616 Dec 2023 1.41M BURUNDI 118% 3,742 TANZANIA 1,984,231 Mgodi Driven by digital 1,830,843 partnerships & 92% ecosystem banking DTB Investor Presentation – FY
Slide 5: Our ecosystem banking strategy is deepening our play across sectors
Our ecosystem banking strategy is deepening our play across sectors Public Sector Agriculture Education Traditional Sectors ✓ Trade KENYA KENYA KENYA ✓ Manufacturing ✓ Real Estate ❑ 35+ public sector accounts, ❑ Focus on private institutions ✓ Tourism with 66% being county ❑ 1,500+ active institutio
Slide 6: We are strengthening our channels for acquisition and customer experience
We are strengthening our channels for acquisition and customer experience 88 Branches in 30 counties UGANDA KENYA Branches 37 ATMs 56 Branches 88 Employees 659 ATMs 79 Employees Agents 876 DTBK 1,545 158 3,448 DTBI 13 Branches Agents BURUNDI +6 2,062 Branches 4 ATMs Employees 0 52 TANZANIA Branches
Slide 7: Digital lending is a growing source of new revenue streams
Digital lending is a growing source of new revenue streams No. of Customers 34,140 1,830,843 422,268 KENYA TANZANIA Mgodi UGANDA Value of Loans Disbursements Total Loans Disbursements Total Loans Disbursements (KShs. Mn) (Tzs. Mn) (Ugx. Mn) 1,095 144,549 71,590 466 41,966 2 2023 2024 2023 2024 2023
Slide 8: To continue leveraging innovative solutions & partnerships for growth
To continue leveraging innovative solutions & partnerships for growth Mgodi Institutions Saccos Payments Commerce Education Health Fintechs SMEs Retail Services Industry Corporates Saccos Agriculture Public Sector DTB Investor Presentation – FY 2024 8 |
Slide 9: Building momentum in Sustainability & Citizenship
Building momentum in Sustainability & Citizenship It starts with us - Greening our Leading the pack in sustainable Reusable menstrual kit for 29K+ buildings (EDGE certification) practices schoolgirls KBA Catalyst Awards Green Building Award ✓ Best Bank Case Study in Sustainable operations Edge Advan
Slide 10: Resilience & Growth: FY 2024 Financial Outcomes
RESILIENCE & GROWTH FY 2024 FINANCIAL OUTCOMES DTB Investor Presentation – FY 2024 10 |
Slide 11: FY 2024 Group financial performance reflects resilience & growth
FY 2024 Group financial performance reflects resilience & growth KES 28.4 billion KES 21.4 billion 18.3% 3% 4% Net Interest Income Operating Costs Total CAR KES 285.3 billion 8% KES 8.7 billion Customer Loans 16% KES 13.0 billion KES 27.33 Provisions 7% 11% Fee Income Earnings per Share KES 447.2 bi
Slide 12: The balance sheet remains strong despite volatile markets
The balance sheet remains strong despite volatile markets FY’24 Performance (KES billion) Performance Highlights FY’24 FY' 23 YOY Balance Sheet ▪ Asset declined by 9.6% due to; Assets ▪ Downward revaluation of foreign currency denominated assets due to a stronger Kenya Shilling Balances due from Cen
Slide 13: Decline in deposits linked to a stronger Kenya Shilling, tight liquidity
Decline in deposits linked to a stronger Kenya Shilling, tight liquidity Deposits (KShs.Bn) Prevailing FX Rates -8.0% 486.1 447.2 ▪ Subsidiaries contributed 34% of deposits. ▪ Gains from customer growth in Kenya - KShs 14Bn FCY 40% 33% ▪ Negative impact of FX revaluation across the group LCY 60% 67%
Slide 14: Diversification in assets underpinning resilience in earnings
Diversification in assets underpinning resilience in earnings Earning Assets (KShs.Bn) Total Loans (KShs.Bn) 546 489 -7.5% 461 118 78 308.5 285.3 74 FCY 55% 56% 58% 46% 60% 254 308 285 LCY 133 120 126 54% 40% 2022 2023 2024 Government Securities Customer Loans 2023 2024 Other Earning Assets Customer
Slide 15: Asset quality is improving
Asset quality is improving NPA Ratio Evolution (%) 16.4 15.6 14.1 13.8 ▪ Stock of NPA reduced by KShs 5.4 Bn due 13.0 12.3 11.4 12.3 to diligent recovery efforts and rigorous credit risk management. 3.5 2.8 3.4 2.5 ▪ As a result, NPL ratio declined by 70bps. FY 2021 FY 2022 FY 2023 FY 2024 Kenya Ind
Slide 16: Improving portfolio quality
Improving portfolio quality Impairement/NPL ratio/COR/Speicific prov. coverage ratio Shs Mn ▪ Impairment losses on loans and advances 12,000 40.7% 39.6% 45.0% declined by KShs 2.2Bn, reflecting improving 10,000 40.0% portfolio quality. 35.0% 9,601 8,000 30.0% ▪ Cost of risk reduced by 90bps supporte
Slide 17: Sectoral NPA distribution
Sectoral NPA distribution FY 2024 Group NPA Distribution (amounts and percentage) 35% 13 27% 24% 12 11 22% 21% 22% 10 9 8 18% 7 14% 5 2% 3% 2% 1 3% 1% 2% 1% 3% 1 1 0 1 1 1 0% 0% 1 0% - 0 0% 0 - Trade Real estate & communication Agriculture Tourism Manufacturing Oil & Gas Other Consumer institutions
Slide 18: Strong Profitability in a Tough Operating Environment
Strong Profitability in a Tough Operating Environment FY'24 Performance (KES billion) Performance Highlights Income Statement FY' 24 FY' 23 YOY • Operating profit grew by 4.2% driven by: Net Interest Income 28.4 27.6 2.9% ▪ 3.0% growth in NII (better margins but low Total Non- Interest Income 13.0 1
Slide 19: Subsidiaries are contributing more than 40% of Group PBT
Subsidiaries are contributing more than 40% of Group PBT Subsidiary contribution to PBT (KShs Bn) ➢ Subsidiaries contributed 43% of PBT in 2024 compared to 45% in 2023, driven by FY 2023 FY 2024 strong growth in Tanzania. ➢ Tanzania recorded a 112% increase in PBT 2% 4% 1% 2% to KShs 3.6Bn, driven b
Slide 20: Improved Earnings Per Share & Returns to Shareholders
Improved Earnings Per Share & Returns to Shareholders Earnings Per Share (EPS) Return On Equity (ROE) +11.1% 30.00 27.33 35.0% 9.6% 9.8% 24.60 30.0% 8.9% 25.00 21.70 25.6% 25.0% 20.00 21.5% 24.4% 23.1% 20.0% 6.0% 15.00 14.00 15.0% 10.00 7.00 10.0% 6.00 5.00 5.00 3.00 1.4% 1.3% 1.5% 5.0% 1.0% 0.00 0.
Slide 21: Looking forward……Aggressive execution of the Business Growth Strategy
Looking forward……Aggressive execution of the Business Growth Strategy 2. Portfolio growth & 1. Widen branch and digital 3. Shift the LCY/FCY portfolio diversification through footprint across our markets mix to 70:30 for better aggressive expansion of margins, reduced volatility. MSME and retail bus
Slide 22: 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 23: Bank with us. Bank on us.
Bank with us. Bank on us. DTB Investor Presentation – FY 2024 23 |
Diamond Trust Bank Kenya — Investor Presentation (2024) on 6ix