Diamond Bank’s Full Year Profit Falls 38% to N3.5 Billion
To further deepen retail strategy
Diamond Bank Plc yesterday released its audited results for the year ended December 31, 2016, showing a growth in top line but decline in bottom-line. Diamond Bank posted 53 per cent growth in total comprehensive income to N12.1 billion with non-interest income surging by 6.9 per cent to N53.9 billion, stimulated by transactional fees.
Net impairment charges stood at N59 billion, a marginal increase from N55 billion. However, the bank ended the year with profit after tax (PAT) of N3.498 billion, showing a fall of 38 per cent from N5.656 billion in 2015. Despite a decline in PAT, the bank’s capital adequacy ratio remained stable at 15.0 per cent, equal to the Central Bank of Nigeria’s (CBN) required minimum, signposting the bank’s preparedness for profitable business expansion.
Speaking on the results, the Chief Executive Officer of Diamond Bank, Uzoma Dozie, said that its stable growth and continued success in spite of the harsh economic headwinds, is hinged on implementing retail and digital-led strategies that are primed to promote sustainable growth and profitability in the long term.
“The restructuring of Diamond Bank’s operating model was a key development completed in the year. Following its successful implementation, the emerging model has strengthened improved Diamond customer Bank’s engagement, value chain approach to business and delivered efficiencies across the Bank. These measures have helped to improve Diamond Bank’s low-cost deposit base from the retail segment, whilst also facilitating growth in non-interest income and a reduction in interest expenses,” he said.
Dozie said that in the months ahead, the bank will continue 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. “The bank will also continue to deepen its retail strategy to mop up low cost fund, expand its credit creation structure and increase market share in all market segments,” he added. A further analysis of the results showed that loans to customers increased by 30.3 per cent to N995.33 billion in 2016 from N763.63 billion in the previous year, while loans to other banks surged by 67.0 per cent to N100.3 billion from N60.1 billion in the previous business year. Also, despite the ravaging effect of the implementation of Treasury Single Account (TSA) by the Federal Government and the Central Bank of Nigeria, customer deposits jumped to N1.4 trillion from N1.2 trillion in the previous year, representing 15.5 per cent increase and the strength of confidence in the bank’s strategic outline.