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Diamond Bank Grows Profit by 71% in 9 Months

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Diamond Bank Plc, on Monday, laid its Q3 2017 financial scorecard on the floor of the Nigerian Stock Exchange (NSE), displaying moderate growth in key financial parameters despite the lull trailing economic activity after the country exited recession.

 

For the nine months business period, the Bank’s gross earnings jumped by 11 per cent year-on-year to N168.4 billion while profit before tax surged by 71 per cent to N6.7 billion. Impairment charges shrunk by 16 per cent to N35.3 billion year-on-year, reflecting management’s prudent approach to loan underwriting.

 

Although operating costs rose by 16 per cent to N54.3 billion from N46.7 billion in the corresponding period last year; this increase, according to the Bank, is due to the huge investment in technology acquisition in line with the management’s strategic set goal to continue to lead the digital revolution in driving the development and delivery of world-class financial products and services in the sub-sector.

 

During this business period, the Bank curtailed staff costs, which shrank by 5 per cent year-on-year. This was because of the migration of more transactions from branches and the banking hall to the digital mobile platforms, leading to 95 per cent increase in online banking and mobile transactions.

 

Most analysts, brokers and industry watchers who commented on the financial result on the trading floor of the Exchange, opine that the profit volume for the business period, may be shrouding the high value and interesting opportunities in Diamond Bank.

 

This is because the constructive management embarked on in the last half decade, has led to the continuous deployment of cutting-edge technology and digital infrastructure, demonstrating the Bank’s preparedness to maintain the lead in digital banking and dominate the industry with strong digital network for generating cheap deposits from the retail and middle market segments.

 

Commenting about the results, Uzoma Dozie, chief executive officer, stated that the Bank’s modest growth in the last three business quarters under review despite the lull in economic activity and hazy operating environment, was the result of management’s focus on key strategic projections across the three core segments of retail, business and corporate banking.

 

He added that the Bank has a lot to do as the management will continue to passionately pursue its technology-driven retail strategy to optimise cost, boost financial performance in the medium to long term and strengthen support for MSMEs.

 

“We are happy with the progress we have made against our technology-led retail strategy and in areas of our financial performance, but there is more to do in the remaining quarter and beyond. Specifically, we are committed to further developing our technology and operational infrastructure that allows us to scale rapidly, efficiently and cost effectively across Nigeria”, Uzoma said.

 

Economists and keen industry observers are of the view that as the economy waddles on the path to full recovery and strong economic activity after the exit from recession, Diamond Bank’s resolve to strengthen its partnerships with domestic and international bodies including MTN, The Gates Foundation and World Women Banking, will help boost and promote innovations in the development of products to drive financial inclusion in the country, and, in extension, shore up customer and deposit base in the business years ahead.

 

“Looking ahead, we expect the Nigerian economy to further improve during the remainder of the year and into 2018. Therefore, we plan to make more financial support available to small and medium business owners and have revamped our propositions to this segment in anticipation of this. This is fully aligned to our ethos of fuelling growth across Nigeria by supporting businesses and entrepreneurship,” Uzoma stated.

 

The Bank’s capital adequacy and liquidity ratios remained stable at 15.8 per cent and 32.7 per cent, which is far above the regulatory requirements of 15 per cent and 30 per cent respectively.

 

Diamond Bank is one of the eight banks designated as systemically important banks by the Central Bank of Nigeria (CBN) in 2013 and, was rated in 2016 as one of the top three customer-centric banks by KPMG Professional Services, providing reliable and dependable financial services to corporate and individual customers in Nigeria and West Africa. The Bank is a leading retail banking franchise and has remained the leader in the MSME segment.

 

Diamond Bank was named and awarded the Best Bank in Financial Inclusion Services and Best Mobile Banking App in the quarter under review at the prestigious Businessday Banking Awards.

 

 


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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