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Diamond Bank Reports N11bn Profit In 6 Months

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Diamond Bank Plc said it has reported N10.8 billion profit- before- tax in its half year result for the period ended June 30, 2017.

The bank’s result released on the Nigerian Stock Exchange (NSE) at the weekend showcased strong growth in core financial parameters surpassing analysts’ projections for the period.

The bank’s operations for the first six months of the business year showed growth in all key financial parameters as profit before tax surged year-on-year by 2.8 per cent to N10.8 billion, this followed the leapfrogging of gross income over total expenses during the period under review.

The bank’s gross earnings jumped 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, reflecting the success of the management’s strategic efforts targeted at improving and boosting this 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.

Loans to customers declined 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, while the bank’s retail customers grew exponentially with over six million Diamond Y’ello customers opening accounts in the last two years.

The bank’s customer deposit base went down marginally by 1.8 per cent from N1.4 trillion to N1.3 trillion within the period, while deposit from other banks surged by 31.9 per cent to N136.4 billion from N103.4 billion, reflecting strong confidence and trust on Diamond Bank as one of the systemically important banks in the economy.

Commenting on the performance, the chief executive officer of Diamond Bank, Uzoma Dozie, stated that despite the economic headwind, 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 plus its digital infrastructure have strengthened and rightly positioned it to meet customer obligations and offer service deliveries that are beyond banking, adding that the improving macroeconomic conditions would help stimulate and sustain the growth trajectory of the bank.

Dozie further stated that a core strategic focus in the next business quarters is to continue building on the progress made in H1 2017 by accelerating and entrenching the digitalization of products, services and operations, adding that the management would  beam its lights on the loan book with a view to improving the quality and further strengthen the balance sheet.

Commenting about the result, analysts 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.

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