Diamond Trust Bank
|Diamond Trust Bank of Kenya Ltd.|
|Key People||Chairman Mahmood Manji|
|Products||Corporate and retail banking services and products|
Business-focused Diamond Trust Bank (DTB) is one of Kenya's most successful lenders of recent years and in 2008 recorded a significant profit increase despite a decline in its share price on the Nairobi Stock Exchange (NSE). DTB, along with retail-focused competitor Equity Bank, plans to expand into neighboring east African countries in 2009.
DTB was founded in Dar es Salaam, Tanzania in 1945 as the Diamond Jubilee Investment Trust with branches in Kenya and Uganda and was later split into three separate entities in 1965. In 1972 the Kenyan arm was renamed Diamond Trust of Kenya as a non-bank financial isntitution and in 1997 converted into a commercial bank and renamed Diamond Trust Bank (DTB), focusing mainly on corporate business. The bank further diversified in 2004 into the Kenyan retail banking sector.
DTB recently boosted its nine-month profit to September 30, 2008 by 32% year-on-year, mostly through a 42% surge in net interest income. Earnings per share grew from 3.37 Kenyan shillings (KSh) in 2007 to 4.45 KSh last year despite a 21% fall in DTB's share price on the NSE in the first nine months, although the NSE itself fell 29% over the period. The International Finance Corp., the private investment arm of the World Bank, last September invested $25 million in DTB to facilitate greater lending to small businesses in Kenya, Bloomberg reported.
DTB Chairman Mahmood Manji was appointed to the position in mid-2005 after serving as group chief executive from 1996 to 1999 and then as director until 2004, when he was appointed deputy chairman. He is also chairman of PDM (Kenya) Ltd. and a director of TPS Eastern Africa Ltd. and the Kenya Civil Aviation Authority. Prior to joining DTB he was managing director of CFC Bank Ltd.
Unlike rival Equity Bank, DTB has decided to grow its new businesses in neighboring countries organically after having problems finding suitable acquisition targets, Chairman Mahmood Manji recently told Business Daily Africa. DTB is currently eyeing immediate expansion into Burundi to add to its Kenya, Ugandan and Tanzanian banking operations but intends building branches their from scratch rather than via takeovers.
- History. Diamond Trust Bank.
- Diamond Trust of Kenya Profit Jumps 32% as Loans Grow. Bloomberg.
- Directors’ Profile. Diamond Trust Bank.
- Banks opt to go it alone as acquisition bids fail. Business Daily Africa.