DTB to open new branches in Madagascar, DRC

Diamond Trust Bank (DTB) is planning to use part of proceeds from a rights issue done last year to open up new branches in Madagascar and the Democratic Republic of Congo (DRC).

Last year’s rights issue raised additional capital amounting to Sh3.6 billion, attracting a 440 per cent subscription rate, the highest out of the nearly 20 sets of rights issues undertaken by various listed firms at the Nairobi Securities Exchange (NSE) over the last decade.

“We are already looking at both these new markets and will make a move once feasibility studies are complete and subject to us receiving all the necessary approvals,” said Chairman DTB Board of Directors Abdul Samji.

He made this disclosure Thursday while addressing shareholders during the 49th DTB Annual General Meeting (AGM) held at Laico Regency in Nairobi. Over the next year, the bank plans to increase investment in Tanzania and Uganda subsidiaries through participation in the rights issue offerings being planned by both banks. DTB also has a subsidiary in Burundi.

During the AGM, shareholders raised concern over the low dividend payout of Sh2.40 per share compared to Sh2.10 paid in the last financial year. “We are still wondering why we received this small dividend while the company performed well as had its retained earnings increase substantially,” said John Wahome, a shareholder.

The Board was at pains to explain its decision to be conservative with rewards to shareholders but promised to do a bonus share issue this financial year as compensation.

“We need to meet these new capital requirements for the subsidiaries in Tanzania and Uganda as well as invest more in the businesses,” said Samji.