Diamond Bank to conclude UK Unit Sale This Year

Udoma Dozie

DIAMOND Bank is expected to conclude the sale of its British unit before the end of the year as it goes through a change of ownership. The bank struck a deal with Sanjeev Gupta, British industrialist, earlier this year after selling its West African subsidiaries last year.

In May, Diamond Bank posted a 2017 loss, its first time in six years after selling assets to conserve capital and to focus on its home market. Its half-year 2018 profit before tax declined 69 percent to N2.92 billion, hurting its shares, which fell a further 1.60 percent.

Diamond Bank said it expected loan growth to return, growing five percent this year after credit declined in the first half by 3.6 percent. Weak economic growth hurt loan growth in Nigeria last year. However, as the economy improves the bank expects loans to grow especially as the Central Bank introduces liquidity to the banking sector targeting credit to manufacturers.

“The loan growth would come from corporate banking. With the turnaround in GDP we would begin to see opportunities in fast moving consumers’ goods, manufacturing,” the bank said.

– Aug. 10, 2018 @ 10:55 GMT |

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