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Diamond Bank grows revenue by 3.2% in Q3

By Helen Oji
28 October 2015   |   2:04 am
Diamond Bank Plc has recorded growth in total revenue, from N151.6 billion recorded during the same period in 2014 to N156.5 billion, representing 3.2 per cent increase over the previous year.

Diamond bankDiamond Bank Plc has recorded growth in total revenue, from N151.6 billion recorded during the same period in 2014 to N156.5 billion, representing 3.2 per cent increase over the previous year.

Also, the bank’s net interest income increased to N85.2 billion against N82.6 billion in the first nine months of 2014.

However, the impact of new regulation by the Central Bank of Nigeria and the Federal Government, especially the change in Cash Reserve Ration (CRR) to 31 per cent and later 25 per cent as well as implementation of the Treasury Single Account continued to be felt at the Bank and the industry generally.

This, according to the bank partly caused a decline in deposits by about N226 billion and consequently led to a drop in total assets by 8.5 per cent year on year.

The Bank, in a move to build a healthier balance sheet that will assure sustainable value to shareholders had earlier in the year notified them that it was restructuring its balance sheet to let go highly priced fixed deposits in favour of low cost deposits, which has very low investment risk and predictable favourable returns.

The Chief Executive Officer of the Bank, Uzoma Dozie, explained that the bank was going through a transformation exercise, adding that its reliance on innovation, technology and lifestyle priorities will drive banking in the future.

He added that Diamond was well positioned to take advantage of this. He expressed optimism about the growth and value to shareholders and restated his commitment to overseeing full implementation of the Bank’s digital led retail strategy.

In a statement accompanying the nine months result to the Nigerian Stock Exchange, the CEO pointed out that.

Despite the challenging macroeconomic environment, the Group’s total revenue increased by 3.2 per cent to N156.5 billion from N151.6 billion recorded for the same period in 2014. Similarly, the Group’s net interest income increased to N85.2 billion against N82.6bn for the same period last year.

“Our total asset declined by 8.5 per cent from December 2014 as we continue to rebuild and strengthen our balance sheet with focus on a more efficient structure that will deliver better returns to shareholders in the long term. Our customer-friendly products and services are showing positive results. By taking this approach we stand to benefit from further innovation, technology and lifestyle changes that will drive banking in the future.

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