11 May 2018 15:00
Diamond Bank Plc
Audited Results for the Full Year ended December 31, 2017
DIAMOND BANK PLC REPORTS A RISE IN GROSS INCOME TO N203.3 BILLION FOR THE 2017 FINANCIAL YEAR
Full year highlights
Financial
· Bank's figures as opposed to the group are used in this press release, following the sale of Diamond Bank Benin SA. The financial statements containing comparative group figures are available in the full release to the Nigerian and London Stock Exchanges.
· Gross earnings rose by 9% year-on-year to N203.3 billion due to increase in interest income.
· Net fees and commission were down by 1.3% year-on-year.
· Impairment charges down 0.3% 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 rose by 6.2% due to foreign exchange rate impact and inflationary pressures.
· Net operating income went up by 4.7% year-on-year due to the income from disposal of a subsidiary.
· Profit before tax fell 33% year-on-year because of higher operating expenses although investments in technology are starting to drive operational efficiencies.
· Total assets increased by 2%, mostly driven by marginal improvements recorded in customer deposits.
Strategy
· Reviewed ownership of non-core assets to focus on the significant opportunities in Nigeria, particularly in retail banking. This led to the divestment from Diamond Bank Benin S.A. and the strategic assessment of other non-core assets.
· Significantly advanced the technology-led retail banking strategy through successfully delivering new initiatives, by building additional ecosystems and the expansion of customer services across different platforms. For example, we launched the DreamVille platform - the first Nigerian gamification portal for banking aimed at improving financial literacy and participation amongst youths.
· Expanded lending to the retail market by offering loan products through mobile channels and a nationwide network of agents. Propositions such as BETA Banking will benefit from this and overall will offer higher risk adjusted returns in the near and short term.
· Significantly reduced the exchange rate risk exposure on our balance sheet.
· Increased services available on the Mobile app and USSD application to enhance convenience, efficiency and customer satisfaction.
Commenting on the results, Chief Executive Officer, Mr. 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 propositions to entrepreneurs, and small and medium business owners gained significant traction and looks like 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.
Although more work is to be done, particularly in relation to our oil and gas exposure, overall the quality of the loan book has improved. This will remain a key area of focus over the next 12 months.
Looking ahead, I am optimistic that due to the actions we have taken as well as an improving economy, Diamond Bank will continue to make good progress and achieve greater profitability.''
Bank Statement of Comprehensive Income
| 31 Dec. 2017 N'000 | 31 Dec. 2016 N'000 | YoY Change |
Interest and similar income | 146,905,435 | 130,878,953 | 12.2% |
Interest expense | (47,281,945) | (34,542,332) | (36.9%) |
Net interest income | 99,623,490 | 96,336,621 | 3.4% |
Impairment Charge | (56,830,411) | (57,015,474) | 0.3% |
Net fee and comm. & other income | 47,771,063 | 47,173,978 | 1.3% |
Net operating income | 90,564,142 | 86,495,125 | 4.7% |
Operating expenses | (88,373,235) | (83,204,638) | (6.2%) |
Profit before income tax | 2,190,907 | 3,290,487 | (33.4%) |
Income tax | (1,321,466) | (1,320,443) | (0.1%) |
Profit for the year | 869,441 | 1,970,044 | (55.9%) |
Other comprehensive income (net) | 1,357,611 | 1,290,481 | 5.2% |
Total comprehensive income | 2,227,052 | 3,260,525 | (31.7%) |
Bank Statement of Financial Position
| 31 Dec. 2017 N'000 | 31 Dec. 2016 N'000 |
Change |
Cash and bal. with central banks | 299,395,467 | 289,663,505 | 3.4% |
Financial assets held for trading | 38,333,109 | 6,870,235 | 458.0% |
Derivative assets | 1,318,528 | 1,925,777 | (31.5%) |
Assets pledged as collateral | 116,357,892 | 170,623,817 | (31.8%) |
Loans to banks | 77,610,730 | 88,553,151 | (12.4%) |
Loans and advances to customers | 755,488,058 | 804,635,641 | (6.1%) |
Investment securities | 223,781,594 | 160,310,857 | 39.6% |
Investment in subsidiaries | 2,000,000 | 15,841,882 | (87.4%) |
Investment properties held for sale | 3,788,000 | 3,701,500 | 2.3% |
Fixed and intangible assets | 67,651,317 | 65,469,455 | 3.3% |
Deferred tax | 4,984,388 | 4,984,388 | 0.0% |
Other assets | 96,873,210 | 49,928,617 | 94.0% |
| 1,687,582,293 | 1,662,508,825 | 1.5% |
Assets classified as held for sale | 7,976,260 | - | - |
Total assets | 1,695,558,553 | 1,662,508,825 | 2.0% |
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Deposits from Banks | 25,861,109 | 13,365,314 | 93.5% |
Deposits from Customers | 1,164,726,773 | 1,134,861,466 | 2.6% |
Current income tax liability | 1,592,413 | 1,598,861 | (0.4%) |
Other liabilities | 49,618,899 | 42,393,481 | 17.0% |
Borrowings | 169,680,170 | 197,644,942 | (14.1%) |
Long term debt | 70,515,228 | 61,307,852 | 15.0% |
Equity | 213,563,961 | 211,336,909 | 1.1% |
Total equity and liabilities | 1,695,558,553 | 1,662,508,825 | 2.0% |
Key Ratios & Per Share Data
• Capital Adequacy Ratio of 16.7% (15.0% Dec 2016)
• Loan to deposit ratio at 69.9% (75.5% Dec 2016)
• Liquidity ratio (Bank) 44.4% (42.3% Dec 2016)
• Cost of risk 6.8% (7.4% Dec 2016)
• Coverage Ratio of 49.1% (57.3% Dec 2016)
• Net Interest Margin of 6.3% (6.2% Dec 2016)
• Cost to income ratio of 60.0% (58.0% Dec 2016)
• NPL ratio of 14.7% (10.5% Dec 2016)
• RoE of 0.4% (0.9% Dec 2016)
• EPS of 4K (9k Dec. 2016)
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, providing enhanced customer experience through innovation and technology. Regarded as supporter of lifestyle trends, its 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 well-known international banks, allowing us to provide a range of world class banking services to suit the business needs of our clients. These international banking partners include Diamond bank UK, Bank of Beirut; BanqueLibano-Francaise, ODDO BHF Bank, Byblos Bank, Citibank, Commerzbank, Deutsche Bank, FBN (UK) Limited, HSBC, ING Bank, KBC Bank, SMBC Ltd, Standard Bank, Standard Chartered.
Please click on the link below to view the associated PDF Document
http://www.rns-pdf.londonstockexchange.com/rns/8588N_-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 9842
Ifeatu Onwuasoanya IOnwuasoanya@diamondbank.com Head, Investor Relations +234 (1) 448 9866 |