- Advertisement -
Home Business Diamond Trust Bank issues profit warning on higher loans provision

Diamond Trust Bank issues profit warning on higher loans provision

- Advertisement -

Lewis Njoka @LewisNjoka

Diamond Trust Bank (DTB) has issued a profit warning for the current financial year, saying it expects earnings to be substantially lower compared to the previous one.

The bank said its performance for the year was affected by the Covid-19 containment measures which hurt trade flows and created uncertainty in various sectors.

It said effects on export, hospitality, real estate, aviation, tourism and agribusiness sub-sectors, forced it to increase loan loss provisions, hence, reduced earnings.

Covid-19 impact

“This is primarily due to an increase in impairment provisions in light of the Covid-19 pandemic as well as an increase in restructured and delayed loan repayments as the Covid-19 impact on customers intensified during the year,” said DTB in a statement.

Companies are required by law to issue a profit warning if their earnings are likely to drop by 25 per cent or more compared to the previous year.

Despite the projected dip in profits DTB exuded confidence, saying its balance sheet remains robust and resilient with a strong capital base and healthy liquidity position.

DTB joins over 14 other companies that have issued profit warnings so far, most of them citing Coronavirus-related challenges.

These include Britam, Absa, East African Breweries Ltd, Kenya Power, Nation Media Group, Unga Group, NCBA Bank, I&M Holdings and Standard Chartered Bank among others.

This spells double pain for investors who will suffer dividend cuts even as most shares continue to depreciate.

In summary

- Advertisement -
- Advertisement -

Stay Connected

16,985FansLike
2,458FollowersFollow
61,453SubscribersSubscribe

Must Read

Biden to block Trump’s plan to lift Covid restrictions

Washington, Tuesday US President-elect Joe Biden plans to quickly extend travel restrictions barring travel by most people who have recently been in much of Europe...
- Advertisement -

When clan stands in way of marriage

  by Jasmine Atieno  @sparkleMine Marriage is a beautiful thing, it is believed. Even the Bible says, “He who finds a wife finds a good thing,...

Kenya turns to foreign market to defuse a ‘ticking time bomb’

Soaring unemployment levels has forced the government to mount pressure on the National Employment Authority (NEA) to fast-track its pursuit of employment opportunities beyond...

Kenya to conclude free trade talks with US, Uhuru says

John Otini and PSCU Kenya is determined to conclude the ongoing Free Trade Agreement (FTA) negotiations with the United States despite a change of power...

Related News

Biden to block Trump’s plan to lift Covid restrictions

Washington, Tuesday US President-elect Joe Biden plans to quickly extend travel restrictions barring travel by most people who have recently been in much of Europe...

When clan stands in way of marriage

  by Jasmine Atieno  @sparkleMine Marriage is a beautiful thing, it is believed. Even the Bible says, “He who finds a wife finds a good thing,...

Kenya turns to foreign market to defuse a ‘ticking time bomb’

Soaring unemployment levels has forced the government to mount pressure on the National Employment Authority (NEA) to fast-track its pursuit of employment opportunities beyond...

Kenya to conclude free trade talks with US, Uhuru says

John Otini and PSCU Kenya is determined to conclude the ongoing Free Trade Agreement (FTA) negotiations with the United States despite a change of power...

Ten ways to make money in 2021

Freelance writing Many online sites offer various freelance writing opportunities globally. Most offer customised jobs in various areas of expertise. If you can write 400 words...
- Advertisement -
%d bloggers like this: