DIAMOND Bank has recorded a gross earnings of N103 billion and a profit of N14 billion for the half-year ended June 30 despite the headwinds. The bank said the revenue increased from N96.8 billion recorded in the corresponding period of 2014.
Uzoma Dozie, group managing director of the bank, said the bank’s continued success in spite of regulatory headwinds, is hinged on focusing on the implementation of strategies that promote sustainable growth and profitability for the long term.
Although, the bank’s profit after tax of N12.15 billion was lower than its 2014 position of N13.78 billion, its capital adequacy ratio rose to 18.6 percent, in excess of the Central Bank of Nigeria, CBN, required minimum, signposting the bank’s preparedness for expanded business and to remain an industry leader.
According to Dozie, “We are encouraged by these positive results and sustenance of our business growth, and affirm our commitment to continue delivering healthy shareholder returns in 2015 and beyond. Our innovative customer friendly services and retail banking strategy are showing positive results and will enable us to sustain low cost of funds. In the quarters ahead, we will focus on premium quality risk assets, as we continue to explore opportunities to grow our market share responsibly. We shall expand customer relationships, enhanced by our elaborate channels and excellent service delivery.”
Diamond Bank’s focus on funding the real sector was reflected in the growth in loans and advances to customers from N791.09 billion to N793.67 billion since the beginning of the year amidst a decline in the pace of economic activities and weak economic fundamentals. Deposits, however, declined from N1.49 trillion to N1.35 trillion, reflecting cumulative changes in regulation such as the new unified Cash Reserve Ratio and Treasury Single Account that necessitated sterilisation of huge sums of money by the Central Bank of Nigeria.
The bank’s focus remains on retail banking and providing convenient and easy banking to the micro small and medium enterprises segment, it has however continue to grow its corporate and mid-tier business segments. “The concept of value chain management helps us to provide end to end solution to the value chains of our corporate clients and ultimately improves value for both us and the customers,” Dozie said.
— Aug 10, 2015 @ 01:00 GMT