" ITREALMS: Diamond Bank maintains stable growth in 2016 half-year performance

Thursday, July 28, 2016

Diamond Bank maintains stable growth in 2016 half-year performance

Diamond Bank Plc has maintained stable growth in the half year (H1) 2016 performance scorecard, despite harsh macroeconomic outlook, reports ITRealms.

The Chief Executive Officer, Uzoma Dozie, said Thursday while formally releasing the bank’s H1 2016 performance scorecard at the floor of the Nigerian Stock Exchange (NSE), said it demonstrated considerable growth in key financial parameters.

Just as industry analysts had forecasted sluggish growth due to the harsh macroeconomic outlook, but the interim report and accounts of the bank for the first six months of the year surpassed industry expectations as total comprehensive income rose by 13.3 per cent year on year to N16.3 billion as against N14.4 billion recorded in comparable period of 2015. Non-interest income surged by 33.4% to N26.5 billion, reflecting the successful efforts targeted at improving this income line and also the focused strategy of management, which were sharpened at improving digital functionality and widening financial inclusion.

Also Dozie said that the bank’s Profit Before Tax (PBT) remained modest and stable at N10.5 billion while Profit After Tax (PAT) stood at N9.1 billion, thus meeting shareholders’ expectation for the period under review and showcasing the strategic strength of the management creatively configured to surmount the turbulent macroeconomic environment and the tough regulatory framework facing the financial services sub-sector.

Diamond Bank, ITRealms gathered, improved on its credit creation by 28.6 per cent as loans and advances to customers grew from N763.6 billion in the same period last business year to N982.3 billion. Also, loans to other banks jumped by 30.7 per cent to N78.5 billion in H1 2016 from N60.1 billion in the corresponding period last year, while its retail customers grew to over 13 million with 7 million of these opening accounts in the last 2 years. Also, the Banks digital leadership in the financial services sub-sector gained ascendency as its Diamond Mobile Apps usage increased from 1.6 million to 5.1 million while volume increased from 1.3 billion to 5.5 billion year on year.

The Bank further said, it sustained a strong top line growth with the asset base surging to N1.970 trillion from N1.753 trillion in the same period last year, representing 12.4 per cent increase.

Dozie, pointed out that despite the economic headwind, the Bank would remain resilient and sustain the positive growth throughout H2.

According to him, the Bank’s strong liquidity and capital adequacy ratios plus its digital transformation have rightly positioned it to meet customer obligations and offer service deliveries that are beyond banking.

“With the domestic economy contracting, the Nigerian banking industry has faced a number of challenges over the last six months. Nevertheless, in the first half of 2016, we have remained resilient in weathering these headwinds and there are real bright spots in our income streams, as well as noteworthy cost reduction, which gives us confidence going into the second half of the year. Due to actions taken and an ongoing prudent approach, our regulatory capital remains strong. This position of strength helped offset the one-off impact of the recent devaluation of the naira, as acknowledged by Fitch Ratings when they affirmed our B rating with a stable outlook. Liquidity of the bank also remains high and is well above the guidance ratio stipulated by CBN,” he said.


Dozie equally noted that although year-on-year impairment charge grew by 45.6 per cent to N19.0 billion, reflecting the Bank’s continuation of prudent provisioning, which is aimed at strengthening performance in the years ahead; its operating costs and interest expense are shrunk by 10.7 per cent and 27.5 per cent, respectively compared to H1 2015, reflecting success of the cost control initiative and low cost deposit strategy.

Remmy Nweke/ED, Ops
ITREALMS ... everything news digitally!

No comments:

Featured post @ITREALMS

Five tips for small business owners online - ITREALMS

Sponsored@ITREALMS ... making leadership SENSE with digital news! Entrepreneurs can benefit from new ideas on ways to address a particular i...