29 Oct 2010 12:03
Diamond Bank Plc
Unaudited Results for the third quarter ended 30 September 2010
DIAMOND BANK PLC REPORTS
LAGOS, NIGERIA - October 29, 2010 - Diamond Bank Plc, (Bloomberg: DIAMONDB NL/ Reuters: DIAMONB.LG) ("Diamond Bank" or the "Group"), the provider of comprehensive banking and other financial services to corporate and individual customers across Nigeria and Africa announces its results for the third quarter ended 30 September 2010.
Speaking from headquarters in Lagos, Emeka Onwuka, Managing Director of Diamond Bank, commented: "I am happy to announce that Diamond Bank has made good progress in the last quarter in consolidating its position in the banking sector by delivering a third consecutive profitable quarter. We have maintained our high liquidity and strong capital adequacy positions, with both being well above the Central Bank of Nigeria's requirements, to support our continued growth. Through the implementation of Project Sparkle we continue to focus on cost efficiency and the Group's cost income ratio has improved in the last quarter, while staff productivity continues to improve.
The Group's latest risk management initiatives are effectively contributing to profitability. Meanwhile our retail strategy is paying off as the Group continues to increasingly attract a greater proportion of low cost deposits in line with our strategy outlined earlier in the year. From this robust platform supported by enhanced risk management policies, lower cost deposits and effective cost efficiency programmes, the Group is well positioned to deliver a positive performance for the year.
Financial Highlights
Profit & Loss - sustained profitability
·; Gross earnings of N20.9 billion in the third quarter ended 30 September 2010 (N21.6 billion Q3 2009)
·; Net interest income of N35.8 billion for the nine months ended 30 September 2010, an increase of 2% versus the comparable prior year period (N35.1 billion September 2009)
·; Operating income of N53.6 billion (N56.8 billion September 2009)
·; Provision for losses of N12.1 billion, a decrease of 52.2% versus the comparable prior year period (N25.3 billion September 2009)
·; Profit before tax of N7 billion compared to a loss of N1.3 billion for the first nine months to 30 September 2009.
Balance Sheet - continued overall growth in balance sheet size
·; Total Assets slightly down by 2.4% on the third quarter to N620.7 billion (N611.6 billion Sept 2010)
·; Gross Loans and advances to customers up 2.9% to N351 billion (N341 billion June 2010)
·; Retail customer loan growth up 59% to N17.3 billion (N10.9 billion June 2010)
·; Total deposits down 8.1% to N423.3 billion (N461 billion June 2010)
·; Retail customer deposit growth resilient, up 7% to N160.8 billion (N150.6 billion June 2010)
Key Ratios - key ratios are trending in the right direction and reflecting strong balance sheet
·; ROAE of 6.1%
·; ROAA of 1.0%
·; Capital adequacy ratio of 15.2% (CBN benchmark of 10%)
·; NPL ratio of 16.8%
·; Coverage ratio of 82.5%
·; Cost/income ratio of 64%
·; Loan to deposit ratio of 82.9%
·; Liquidity ratio of 40.0% (CBN Statutory minimum of 25%)
Business Segment Highlights
Regional Businesses (comprising Retail Banking and National Corporate)
- Profit before tax N4.2 billion 9 month to September 2010 ( Negative N1.1billion 9 months to September 2009); Asset N152.5 billion September 2010 (N205.1 billion 2009)
Commenting on the highlights, U.K Eke, Executive Director Regional Businesses said: "Aggregate demand for credits and advances dropped due to curtailed expenditure and weak purchasing power in the larger economy. However, market confidence started inching northwards during the quarter. Our good performance is underpinned by the deployment and sustenance of a disciplined market segmentation framework, enhanced by strong value adding products, across the spectrum. In addition more business locations in our network continue to gain market share. This is expected to trend upwards in the last quarter".
- "The retail banking side of the regional business segment continues to make significant strides in growing its assets through our successful partnerships with leading brands. We intend to sustain these relationships and develop new ones to continue to leverage on our excellent suite of propositions to grow our low cost funds and positively impact profitability". said Garry Marsh, Senior Adviser Retail and Private Banking.
Corporate Banking
- Corporate Banking produced a Profit before tax of N2.8 billion for the 9 month period ended 30 September 2010. This is compared to a loss before tax of N151.8 million for the prior year period. Commenting on the results Uzoma Dozie, ED of Corporate Banking, said; "The division's investment this year in expanding its customer base and collection strategies is now paying dividends with these initiatives now contributing to profitable growth. Good progress is being made on increasing account activity and business volumes, maximizing growth potential through the dealer finance and distributor schemes. We continue to seek strategic partnerships to provide funding for major deals while also aggressively identifying and marketing profitable transactions''.
Operational Highlights
- Fitch Ratings has affirmed Diamond Bank Plc's (Diamond) ratings as a Long-term foreign currency Issuer Default (IDR) 'B' with a Stable Outlook, Short-term foreign currency IDR 'B', Individual 'D/E', Support '4' and Support Rating Floor 'B'. Fitch also affirmed the bank's National ratings at Long-term 'A-(nga)' and Short-term 'F2 (nga)', respectively.
- The Group's new risk management initiatives continue to be rolled out and are positively affecting the Group's non performing loan ratio with a reduction in loan losses and improved risk asset quality.
(For the detailed Profit and Loss Account, Balance Sheet, Cashflow statement and notes to the accounts, please visit our website - www.diamondbank.com)
- ENDS-
Conference Call for Results
Diamond Bank Plc will be hosting a teleconference call for analysts and investors on Tuesday 2nd November 2010, at 2 pm Lagos time (9 am New York/ 1 pm London / 3 pm Johannesburg) with its senior management to announce Diamond Bank Plc's results for the 9 months ended 30 September 2010. There will also be an opportunity at the end of the call for management to take questions from investors and analysts.
The teleconference call facility can be accessed by dialing:
+44 207 806 1958 UK & International
+1 718 354 1390 in the US
+27 11 019 7016 in South Africa
And then entering the following access code: 3934649
Participants should register for the call at least five minutes before the start of the presentation.
For those who are unable to listen to the live call, a replay facility will be available on the 3rd of November by dialling +44 (0)20 7111 1244 (UK) and +1 347 366 9565 (US) and entering access code 3934649#
The presentation will be posted to Diamond Bank's website on morning of Tuesday 2nd of November at www.diamondbank.com
- ENDS -
For further information please contact:
Mark Oguh moguh@diamondbank.com +234 (1) 448 9832
Africa Practice / Financial Dynamics
Lagos:
Nick Chambers nchambers@africapractice.com +234 703 232 3089
Oberhi Majoroh omajoroh@africapractice.com +234 805 193 7592
London:
Ed Gascoigne-Pees ed.gascoigne-pees@fd.com +44 (0)20 7269 7132
Kat Bloom kat.bloom@fd.com +44 (0)20 7269 7223
Notes to editors:
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 one of the leading banks in Nigeria* - respected for its excellent service delivery, driven by innovation and operating on the most advanced banking technology platform in the market. Diamond Bank has over the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships.
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 Citibank; HSBC Bank; ANZ Banking Group; ING BHF Bank AG; Standard Chartered Bank; Belgolaise Bank S.A; Deutsche Bank; Commerzbank; and Nordea Bank Plc.
* Diamond Bank's A- rating by Fitch Ratings and A+ rating by GCR, reflects the bank's sustainable liquidity, sound and professional practices and good standing as a high investment grade institution.
More information can be found at www.diamondbankplc.com