15 May 2018

Nigeria: Diamond Bank Posts N203.3 Billion Gross Earnings in Full Year

Diamond Bank Plc has achieved nine per cent increase in gross earnings from N187.3billion in 2016 to N203.3billion in 2017.

Specifically, the bank's audited result for the year ended December 31, 2017, showed nine per cent increase in turnover to N203.3billion from N187.3billion recorded in the corresponding period in 2016.

However, the bank's profit before tax year-on-year dipped from N3.2billion in 2016 to N2.1billion during the period under review due to high operating expenses.

The Bank's net fees and commission were down by 1.3 per cent year-on-year. Impairment charges also trended downwards 0.3 per cent year-on-year to N56.8billion following continued efforts to improve the quality of the loan book, particularly in the Oil and Gas mid-stream sector.

Operating costs of the Bank rose by 6.2 per cent due to foreign exchange rate impact following the devaluation of the naira during the year.

The Chief Executive Officer, Uzoma Dozie, said Diamond Bank made good progress in executing its technology-led retail banking strategy in 2017.

"We increased our market share and drove scale through a combination of technology and expansion of our services across additional platforms. For instance, we made additional inroads to the unbanked and under-banked populations with the support of our international partners. In addition, the rapid rollout of products and services for entrepreneurs, and small and medium business owners gained significant traction and is a trend that is set to continue.

"At a macro level, the economic environment improved, albeit marginally. Against this backdrop and Nigeria's broader positive fundamentals, we disposed of some non-core assets to optimise the use of our resources and focus on the significant potential of our domestic market. By taking this action, Diamond Bank is better positioned to accelerate its growth, productivity and profitability in the short to medium term," he added.

He said the bank also reviewed ownership of non-core assets to focus on the significant opportunities in Nigeria, particularly in retail banking. This led to the divestment from Diamond Bank business in West Africa, with that in United Kingdom set to follow.

Furthermore, to restore its technology-led retail banking strategy, he said the bank successfully delivered new initiatives, by building additional ecosystems and the expansion of customer services across different platforms.

These include the DreamVille platform - the first Nigerian gamification portal for banking aimed at improving financial literacy and participation amongst youths.

"Although more work is to be done, particularly in relation to our oil and gas exposure, overall the quality of the loan book has improved. This will remain a key area of focus over the next 12 months. Looking ahead, I am optimistic that due to the actions we have taken as well as an improving economy, Diamond Bank will continue to make good progress and achieve greater profitability."

This led to the divestment from Diamond Bank business in West Africa, with that in United Kingdom set to follow.

Furthermore, to restore its technology-led retail banking strategy, he said the bank successfully delivered new initiatives, by building additional ecosystems and the expansion of customer services across different platforms.

These include the DreamVille platform - the first Nigerian gamification portal for banking aimed at improving financial literacy and participation amongst youths.

"Although more work is to be done, particularly in relation to our oil and gas exposure, overall the quality of the loan book has improved. This will remain a key area of focus over the next 12 months. Looking ahead, I am optimistic that due to the actions we have taken as well as an improving economy, Diamond Bank will continue to make good progress and achieve greater profitability."

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