Diamond Bank Plc has posted profit before tax of N10.8 billion in its half-year result, against N10.4 billion posted in the corresponding period in 20162.8, a per cent rise.
A breakdown of its First Half (H1 2017) financial results released on the floor of the Nigerian Stock Exchange (NSE), showed that the bank’s profit after tax also rose to N9.3 billion, higher than N9 billion posted during the same period in 2016.
The Bank’s gross earnings soared by 16.1 per cent over the previous year to N114.1 billion while interest income also increased by 31.5 per cent to N89.1 billion.
The enhanced result, according to the bank, was a reflection of the successful management’s strategic efforts targeted at improving and boosting the overall indices and income line.
“Although the impairment charge increased mildly by 6.9 per cent, which is in tandem with the bank’s continuation of prudent provisioning, its total asset grew by 0.8 per cent year-on-year to N2.065 trillion, making Diamond Bank one of the top six biggest banks in the country.
“Despite the fact that loans to customers shrunk by 1.8 per cent from N1.4 trillion to N1.3 trillion, reflecting the cautious optimism employed by the management to manage and stabilise risk assets, as the economy waddles through and out of recession. The Bank’s retail customers grew exponentially with over six million Diamond Y’ello customers opening accounts in the last two years.”
The Chief Executive Officer, Uzoma Dozie, assured that the bank would remain resilient and sustain the positive growth throughout the two remaining business quarters.
According to him, the Bank’s strong liquidity and capital adequacy ratios, as well as its digital infrastructure have strengthened and rightly positioned it to meet customer obligations and offer service deliveries that are beyond banking.
He added that the improving macroeconomic conditions will help stimulate and sustain the growth trajectory of the Bank.
“The positive economic signals witnessed at the beginning of the year continued in the second quarter and we believe this will translate to greater productivity in the months ahead. There have been market driven adjustments in the exchange rate of the naira versus other currencies and this has helped supply into these markets.”
“Overdue trade obligations, which were an issue some months ago, have been addressed significantly and demand is generally being satisfied providing the right conditions for trade activities. Inflation has continued to recede, with the prospect of some GDP growth by year end, even if marginal. Against this backdrop, our income streams remain resilient and considerable growth was recorded in gross earnings,”
Speaking further, he stated that the core strategic focus in the next business quarters is to continue building on the progress made in H1 2017, by accelerating and entrenching the digitalisation of products, services and operations, adding that the management will beam its lights on the loan book with a view to improving the quality and further strengthen the balance sheet.
He noted that the bank plans to sustain the growth momentum by retaining focus on our digital retail strategy and lifestyle banking in the coming months.
Dozie added that a key component of this focus is to continue to add value driving services to its platforms and signing on to more merchants to the network.
“Analysts and industry watchers opined that the bank has been rightly positioned for accelerated growth in the next business years ahead, noting that with the strong retail strategy, digital infrastructure and focused management, the core fundamentals have continued to look up.
“For example, the bank’s low cost deposits account for more than 80 per cent of its deposit base. This is very significant as it reflects the Bank’s diversified customer base across market segments through compelling retail offerings, giving vent to material risk diversification.