Diamond Bank posts N9.1 billion profit

Diamond Bank Plc’s unaudited result for the six months ended June 30, 2016 showed a Profit After Tax (PAT) of N9.1 billion, against N12 billion recorded in the corresponding period in 2015.

However, its total comprehensive income rose by 13.3 per cent year on year to N16.3 billion as against N14.4 billion recorded in comparable period of 2015.

Non-interest income surged by 33.4 per cent- to N26.5 billion, reflecting the successful efforts targeted at improving this income line and also the focused strategy of management, which were sharpened at improving digital functionality and widening financial inclusion.

Profit Before Tax (PBT) stood at N10.5 billion, compared to N14 billion in 2015.

The Bank improved on its credit creation by 28.6 per cent as loans and advances to customers grew from N763.6 billion in the same period last business year to N982.3 billion.

Similarly, loans to other banks rose by 30.7 per cent to N78.5 billion in H1 2016 from N60.1 billion in the corresponding period last year, while its retail customers grew to over 13 million with seven million of these opening accounts in the last two years.

Also, the banks digital leadership in the financial services sub-sector gained ascendency as its Diamond Mobile Apps usage increased from 1.6 million to 5.1 million while volume increased from 1.3 billion to 5.5 billion year on year.

The Bank sustained a strong top line growth with the asset base increasing to N1.970 trillion from N1.753 trillion in the same period last year, representing 12.4 per cent increase.

The Chief Executive Officer of the bank, Uzoma Dozie assured that the bank would remain resilient and sustain the positive growth throughout H2 despite the economic headwind.

According to him, the bank’s strong liquidity and capital adequacy ratios as well as its digital transformation, have rightly positioned it to meet customer obligations and offer service deliveries that are beyond banking.

“With the domestic economy contracting, the Nigerian banking industry has faced a number of challenges over the last six months. Nevertheless, in the first half of 2016, we have remained resilient in weathering these headwinds and there are real bright spots in our income streams, as well as noteworthy cost reduction, which gives us confidence going into the second half of the year.

“Due to actions taken and an ongoing prudent approach, our regulatory capital remains strong. This position of strength helped offset the one-off impact of the recent devaluation of the naira, as acknowledged by Fitch Ratings when they affirmed our B rating with a stable outlook. Liquidity of the bank also remains high and is well above the guidance ratio stipulated by CBN.

“Although year on year impairment charge grew by 45.6 per cent to N19.0 billion, reflecting the Bank’s continuation of prudent provisioning, which is aimed at strengthening performance in the years ahead; its operating costs and interest expense are shrunk by 10.7 per cent and 27.5 per cent respectively compared to H1 2015, reflecting success of the cost control initiative and low cost deposit strategy.”