Diamond Trust Bank clocked within in-house expectations to record a modest 14.7% y/y growth in net earnings to KES 7.79Bn throughout 2023. Performance was shaped by a sharper growth in pre-provision operating expenses compared to operating incomes.
The Board of Directors recommend a first and final dividend of KES 6.00 per share. This distribution fell above our expected total dividend range – translating to a dividend payout ratio of 21.5%.
Recommendation - We maintain our HOLD recommendation on Diamond Trust Bank on account of lackluster return on equity momentum and shrinking capital buffers.
