11 May 2018 14:53
Diamond Bank Plc
Unaudited Results for the First Quarter ended 31st March 2018
First Quarter Highlights
Financial
· Impairment charge of N8.2 billion representing a decrease of 18% year-on-year.
· Operating costs improved 0.1% as more transactions move from branches to mobile platforms.
· Profit before tax decreased year-on-year by 77% to N1.1 billion due to higher interest expense which compressed net interest income, and lower non-interest income for the period.
Strategic
· Review of non-core assets continued during the quarter with further realignment in group structure.
· Digital led retail strategy continued to deliver results with quarterly mobile banking revenue increasing from N1.2 billion in Q1 2017 to N1.8 billion in Q1 2018.
· Successfully launched 24/7 Artificial Intelligence (AI) chatbot "ADA" marking an additional service delivery channel to drive customer convenience.
· Customer acquisition through digital channels and agency network maintained momentum with active account ratio and share of customers' transactions increasing.
· Efforts to reduce foreign exchange exposure on the balance sheet continued.
Commenting on the results, Chief Executive Officer, Mr. Uzoma Dozie said: "At a macro level the year has begun with positive indicators, such as growth in GDP, declining inflation and rising crude oil prices. Thus, investor sentiment about the economy is becoming more positive as shown by the success of recent bond sales by the Federal Government. We expect these positive trends to continue and I am confident that Diamond Bank is well positioned to capitalise on these, particularly having disposed non-core assets to focus on the Nigerian opportunity.
In particular, 2018 will see Diamond Bank invest more in emerging businesses through an expanded loan offering and support for different activities in trade, agriculture and manufacturing. As emerging businesses continue to flourish, we will also continue to develop services and products to support their needs.
2018 will also be a year of further innovation and new partnerships in our quest for the ultimate 'convenience banking'. As a result, all our customers will stand to benefit from new products and services via our mobile banking app in the year ahead.
In summary, the outlook for 2018 is positive for Diamond Bank. Revenue is expected to grow; operating expense will stabilize and decisive action should result in a decline in loan impairment losses. With the economy showing signs of solid recovery, Diamond Bank has an excellent platform from which to grow and achieve long term sustainable profitability."
Bank Statement of Comprehensive Income
31 Mar. 2018 N'000 | 31 Mar. 2017 N'000 | YoY Change | |
Interest and similar income | 38,124,846 | 38,521,367 | (1.0%) |
Interest expense | (14,833,740) | (10,641,540) | (39.4%) |
Net interest income | 23,291,106 | 27,879,827 | (16.5%) |
Net fee and comm. and other income | 8,000,844 | 9,051,519 | (11.6%) |
Impairment Charge | (8,206,117) | (10,004,535) | 18.0% |
Net operating income | 23,085,833 | 26,926,811 | (14.3%) |
Operating expenses | (21,970,846) | (21,994,717) | 0.1% |
Profit/(loss) before tax | 1,114,987 | 4,932,094 | (77.4%) |
Income tax | (167,248) | (739,814) | 77.4% |
Profit/(loss) after Tax | 947,739 | 4,192,280 | (77.4%) |
Other comprehensive income (net) | (719,898) | (1,363) | (52,717.2%) |
Total comprehensive income | 227,841 | 4,190,917 | (94.6%) |
Bank Statement of Financial Position
31 Mar. 2018 | 31 Dec. 2017 | YoY | |
N'000 | N'000 | Change | |
Cash and cash equivalents | 269,181,356 | 299,395,467 | (10.1%) |
Financial assets held for trading | 31,049,217 | 38,333,109 | (19.0%) |
Derivative assets | 1,197,910 | 1,318,528 | (9.1%) |
Assets pledged as collateral | 122,408,994 | 116,357,892 | 5.2% |
Loans to banks | 65,064,930 | 77,610,730 | (16.2%) |
Loans & advances to customers | 747,664,509 | 755,488,058 | (1.0%) |
Investment securities | 226,621,569 | 223,781,594 | 1.3% |
Investment | 5,788,418 | 5,788,000 | 0.0% |
Fixed and intangible assets | 68,923,411 | 67,651,317 | 1.9% |
Deferred tax | 4,984,388 | 4,984,388 | 0.0% |
Other assets | 103,198,619 | 96,873,210 | 6.5% |
Operating Assets | 1,646,083,321 | 1,687,582,293 | (2.5%) |
Assets held for sale and dis. ops | |||
7,976,260 | 7,976,260 | 0.0% | |
Total assets | 1,654,059,581 | 1,695,558,553 | (2.4%) |
Deposits from Banks | 32,009,577 | 25,861,109 | 23.8% |
Deposits from Customers | 1,116,785,417 | 1,164,726,773 | (4.1%) |
Other liabilities | 54,143,260 | 51,211,312 | 5.7% |
Borrowings | 170,638,544 | 169,680,170 | 0.6% |
Long term debt | 69,167,890 | 70,515,228 | (1.9%) |
Equity | 211,314,893 | 213,563,961 | (1.1%) |
Total liabilities and equity | 1,654,059,581 | 1,695,558,553 | (2.4%) |
Key Ratios & Per Share Data
• Capital Adequacy Ratio of 16.5% (16.7% Dec 2017)
• Loan to deposit ratio at 74.0% (69.9% Dec 2017)
• Liquidity ratio of 39.0% (44.4% Dec 2017)
• Cost of risk 4.1% (6.8% Dec 2017)
• Coverage Ratio of 54.6% (49.1% Dec 2017)
• Net Interest Margin of 6.1% (6.3% Dec 2017)
• Cost to income ratio of 70.2% (60.0% Dec 2017)
• NPL ratio of 15.7% (14.7% Dec 2017)
• ROAE of 1.7% (0.4% Dec 2017)
• EPS of 16k (4k Dec. 2017)
Conference Call Details
Conference Call details will be communicated shortly.
For the detailed Profit and Loss account, Balance Sheet, Cashflow statement and notes to accounts, please visit our website - http://www.diamondbank.com
About Diamond Bank Plc
Diamond Bank Plc began as a private limited liability company on March 21, 1991 (the company was incorporated on December 20, 1990). Ten years later, in February 2001, it became a universal bank. In January 2005, following a highly successful Private Placement share offer which substantially raised the Bank's equity base, Diamond Bank became a public limited company. In May 2005, the Bank was listed on The Nigerian Stock Exchange.
Today, Diamond Bank is the fastest growing retail bank in Nigeria with a track record of high quality banking solutions for customers. It's the lead driver of financial inclusion and enhanced customer experience through innovation and technology. Regarded as supporter of lifestyle trends, it mobile banking app, "Diamond Mobile" currently has over 2 million active subscribers on its platform. Diamond Bank has over the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships.
It has also played a leading role in partnering with domestic and International bodies such as Women's World Banking, Bill and Melinda Gates Foundation, MTN etc. to create easy access to financial services for the unbanked.
We have retained excellent banking relationships with a number of well-known international banks, allowing us to provide a bouquet of world class banking services to suit the business needs of our clients. These international banking partners include Diamond bank UK, Bank of Beirut, Banque Libano- Francaise, BHF Bank, BNP Fortis, BNP Paribas, Byblos Bank, Citibank, Commerzbank, Credit Suisse, Deutsche Bank, FBN bank UK, HSBC Bank, ING Bank, Intesa Sanpaolo, KBC Bank, Marsheq Bank, Standard Bank, Standard Chartered Bank, SMBC Ltd, Svenska Handelsbanken, UBS AG, UNICREDIT.
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/8603N_-2018-5-11.pdf
More information can be found at www.diamondbank.com
Investor Relations Contacts Chiugo Ndubisi Cndubisi@diamondbank.com Chief Financial Officer +234 (1) 448 9832
Ifeatu Onwuasoanya Ionwuasoanya@diamondbank.com Head, Investor Relations +234 (1) 448 9866
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