This Day (Lagos)

12 July 2012

Nigeria: Diamond Bank's Half-Year Profit Jumps By 408 Percent

Shares in Diamond Bank Plc rose by 4.8 per cent yesterday as investors reacted positively to the impressive financial results the bank reported for the half year ended June 30, 2012.

The bank raised investors' hope for a good harvest at the end of the current financial year with 408 per cent jump in profit before tax for the H1.

The unaudited results released on the trading floor of the Nigerian Stock Exchange (NSE) showed gross earnings of N64.615 billion; up from N43.615 billion in the corresponding period of 2011.

However, profit before tax soared by 408 per cent from N3.026 billion to N15.376 billion. Similarly, profit after tax rose by same percentage from N1.967 billion to N9.995 billion. All the performance indicators of the bank closed the H1 in green.

Apart from the gross earnings, and profits that witnessed significant growths, the bank also grew its deposits base by 10 per cent from N624 billion to N688 billion. Loans portfolio appreciated by 25 per cent from N482.6 billion to N605 billion, while total assets stood at N960 billion, up by 20 per cent from N802.6 billion in the corresponding period of 2011.

Given the impressive results, investors increased their demand for Diamond Bank's shares, which consequently pushed the price by 4.8 per cent to close at N2.41 per share.

The trading was generally skewed in favour of banking stocks as investors anticipate more impressive H1 results from the sector. In all, nine banking stocks witnessed price appreciation among the 20 price gainers recorded for the day.

The gains by the banks led to a rebound in the market with the Nigerian Stock Exchange (NSE) All-Share Index closing 0.6 per cent higher at 22,253.71

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