Diamond Bank profit drops 12% in H1

Diamond Bank Plc ended the first half of this year with a weak bottom-line as the commercial bank struggled with marginal growth in revenue. The weak bottom-line also affected the balance sheet of the bank, with more than N100 billion reduction within the six month period.

The unaudited report and accounts for the six-month period ended June 30, 2015 released at the weekend showed that while gross earnings managed six per cent growth, pre and post tax profits dropped by about 12 per cent each. The total assets of the bank also declined by 5.2 per cent.

Gross earnings grew slightly by six per cent to N103 billion by June 2015 compared with N96.8 billion recorded in comparable period of 2014. Profit before tax however declined from N16.07 billion to N14.19 billion. Profit after tax followed the downtrend at N12.15 billion by June 2015 compared with N13.79 billion recorded in comparable period of 2014. Total assets closed the first half at N1.83 trillion, N100 billion below N1.93 trillion recorded by the year ended December 31, 2014.

Chief executive officer, Diamond Bank Plc, Mr. Uzoma Dozie, however described the performance as satisfactory noting that the bank’s continued success in spite of regulatory headwinds evidenced management’s strategies that promote sustainable growth and profitability in the long term.

He said the group has continued to deploy new technologies and digital applications to drive financial inclusion and convenient banking amidst a decline in the pace of economic activities and weak economic fundamentals.

According to him, the bank’s innovative and customer friendly services as well as its retail banking strategy are showing positive results and will enable the bank to sustain low cost of funds.

He noted that although loans to customers increased by N2.6 billion, customer deposits, however, declined from N1.5 trillion to N1.4 trillion, reflecting the impact of the bank’s deliberate decision to improve the efficiency of its funding structure, and effect of implementation of Treasury Single Account (TSA) by the Federal Government and the CBN.

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He outlined that the bank’s focus remains on retail banking and providing convenient and easy banking to the micro, small and medium-scale enterprises (MSME) segment adding that it has also continued to grow its corporate and mid-tier business segments.

He added that the concept of value chain management has helped the bank to provide end-to-end solution to the distributors of its corporate clients and ultimately improve value for all stakeholders.

“In the quarters ahead, we will focus on driving non-interest income, 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,” Dozie said.

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