Diamond Bank reports N11bn PBT in six months

Diamond Bank Plc has reported N10.8 billion profit- before- tax in its half-year result for the period ended June 30, 2017.
The half-year result of the bank released on The Nigerian Stock Exchange (NSE) at the weekend showcase that it achieved growth in core financial parameters for the period in consideration.
The bank’s profit before tax surged year-on-year by 2.8 per cent to N10.8 billion, this followed the growth in its gross income over total expenses during the in period even as its gross earnings jumped by 16.1 per cent over the previous year to N114.1 billion and interest income also increased by 31.5 per cent to N89.1 billion, reflecting the success of the management’s strategic efforts targeted at improving and boosting this income line.
Although the impairment charge increased mildly by 6.9 per cent, which is in tandem with the bank’s continuation of prudent provisioning, its total asset grew by 0.8 per cent year-on-year to N2.065 trillion, making the bank one of the top six biggest banks in the country.
It is also worthy of note that loans to customers dropped by 1.8 per cent from N1.4 trillion to N1.3 trillion, due to cautious optimism by its management to manage and stabilise risk assets in this time recession. On the other the bank’s retail customers grew exponentially as its Diamond Y’ello customers opening accounts in the last two years was over six million.
But despite the growth in its customer base, the bank’s customer deposit base went down marginally by 1.8 per cent from N1.4 trillion the preceding period to N1.3 trillion. This is a reflection of the economy as many average Nigerians find it difficult to save.
Even at that deposit from other banks surged by 31.9 per cent to N136.4 billion from N103.4 billion, reflecting strong confidence and trust on Diamond Bank as one of the systemically important banks in the economy.
According to its Chief Executive Officer of Diamond Bank, Uzoma Dozie, despite the economic headwind, the bank would remain resilient and sustain the positive growth throughout the two remaining business quarters.
The bank’s strong liquidity and capital adequacy ratios plus its digital infrastructure have strengthened and rightly positioned it to meet customer obligations and offer service deliveries that are beyond banking, adding that the improving macroeconomic conditions would help stimulate and sustain the growth trajectory of the bank. He said.
Dozie further stated that a core strategic focus in the next business quarters is to continue building on the progress made in H1 2017 by accelerating and entrenching the digitalization of products, services and operations, adding that the management would beam its lights on the loan book with a view to improving the quality and further strengthen the balance sheet.
Commenting about the result, analysts opined that the bank has been rightly positioned for accelerated growth in the next business years ahead, noting that with the strong retail strategy, digital infrastructure and focused management, the core fundamentals have continued to look up.