Total operating income - Sh25.46bn

Total operating expenses - Sh14.49bn

PBT - Sh11bn

PAT - Sh7.08bn

Dividend maintained at Sh2.60/share, book closure May 23rd.

This kind of nonsensical dividend payout can only be entertained by VVS

I see you have no love for Warren Buffett or Berkshire Hathaway

I see you have no love for Warren Buffett or Berkshire Hathaway

"DTB should just declare a period of no dividends" You should propose that at the AGM.

"a dividend of 2.6 for a company trading at 130 or 150 is just careless" What would you call a share that trades at $300,000+ and pays zilch in dividends?

Question: If you know DTB's dividend policy is "stingy" and has been the case for years, if not decades, then why bother with DTB if you want a high dividend payout ratio?

BAT and BBK seem better suited for you.

Another is KCB with a decent payout ratio.

I have Centum whose dividend (vs PAT) is nothing to write home about. But I knew it going in. They retain "profits" to re-invest or pay down debt rather than have Rights Issues.
Another is Car & General. Lousy dividend vs PAT. Lousy for years. They retain "profits" to pay down debt, increase working capital and re-invest rather than have Rights Issues.

For both Centum and C&G, I focus on the Earnings Yield, NAV and potential future gains when they sell their "For Sale" investments.

But does the capital gains part of the equation work out for DTB?

They do not send cheques but dividend notification letter. Then they credit your bank account with cash. My cash was well recieved on time.

I am also worried about their NPL

Ugandan court declares syndicated loan to DTB Uganda borrower is illegal since DTB Kenya is not licensed to operate in Uganda.

This has made other foreign banks which rely on their parent banks when syndicating loans very jittery.

Equity Uganda has a similar court in case.

The loan defaulters are celebrating like there is no tomorrow.

Uganda Bankers Association has termed the ruling as "reckless".

Link

Uganda’s central bank has said foreign-based commercial banks do not need its approval to lend funds originating abroad, bringing relief to Kenyan banks that had been rattled by a court ruling last week that declared some syndicated loans illegal.

The Bank of Uganda said it did not regulate lending that involved “using funds obtained from foreign banks that do not take deposits from the public in Uganda.”

“Foreign banks lending deposits held in jurisdictions other than Uganda are regulated and supervised by their home authorities,” it said in a statement. “It is not mandatory for a foreign bank to establish a representative office in Uganda in order to conduct lending.”

Though the Bank of Uganda’s position does not override the court’s ruling, it boosts chances of a successful appeal by Diamond Trust Bank (DTB), which was the subject of a commercial court ruling.

Uganda’s Commercial Division Judge Justice Henry Peter Adoyo last week ruled that DTB, together with its Ugandan subsidiary, DTB Uganda, acted illegally by jointly lending money to Ham Enterprises Ltd and Kiggs International (U) Ltd, owned by Ugandan businessman Hamis Kiggundu.

Both banks had put together syndicated loans for Mr Kiggundu and his businesses over several years. But after a dispute over repayments Kiggundu sued, arguing the loans were illegal because the Kenyan bank did not have a Ugandan banking licence issued by the central bank.

Ugandan banks have traditionally relied on syndicating big credit lines with parent banks in bigger markets to serve major corporate customers and the ruling, which has been appealed, put the fate of such loans in doubt.