Diamond Bank suffered N9bn loss in 2017


Nigeria’s mid-sized lender, Diamond Bank Plc said it made a loss after tax of N9.085 billion for the full year period of 2017.
The bank in its results released to the Nigerian Stock Exchange (NSE) in Lagos shows negative period for the bank given that it reported a profit after tax of N3.471 billion in 2016.
Also, the lender’s recorded loss before tax of N11.547 billion for the full year period of 2017 as against profit before tax of N3.369 billion in 2016.
Diamond Bank said its gross earnings for the period rose to N189.62 billion compared to N184.05 billion reported in 2016.
Its earning per share (EPS) also dipped to -56 kobo from 9 kobo it earned in 2016.
Deposits from its customers dropped by N263 billion, represented 18.46 percent from N1.425 trillion recorded in 2016 to N1.162 trillion at the end of 2017 financial year.
Diamond Bank total assets declined from N2.050 trillion in 2016 to N1.715 trillion at the end of 2017 financial year, while its total liabilities decrease to N1.491 trillion from N1.823 trillion reported in 2016.
The bank’s net fees and commission were down by 1.3 percent year-on-year although impairment charges also trended downwards 0.3 percent year-on-year to N56.8 billion following continued efforts to improve the quality of the loan book, particularly in the Oil and Gas mid-stream sector. Operating costs of the bank rose by 6.2 percent due to foreign exchange rate impact following the devaluation of the naira during the year.
Despite selling off its unit in London, the bank would require more structural reform in its business model to get back into profitability as a result of its large non-performing loan portfolio.
Commenting on the results, Chief Executive Officer, Uzoma Dozie said, Diamond Bank made good progress in executing its technology-led retail banking strategy in 2017. We increased our market share and drove scale through a combination of technology and expansion of our services across additional platforms. For instance, we made additional inroads to the unbanked and underbanked populations with the support of our international partners. In addition, the rapid rollout of products and services for entrepreneurs, and small and medium business owners gained significant traction and is a trend that is set to continue.
“At a macro level, the economic environment improved, albeit marginally. Against this backdrop and Nigeria’s broader positive fundamentals, we disposed of some non-core assets to optimise the use of our resources and focus on the significant potential of our domestic market. By taking this action, Diamond Bank is better positioned to accelerate its growth, productivity and profitability in the short to medium term,” continued Uzoma.