29 Jul 2011 13:59
Diamond Bank Plc
Unaudited results for the six months ended 30 June, 2011
DIAMOND BANK PLC REPORTS A RETURN TO STEADY PROFITABILITY AS RISK MANAGEMENT AND BUSINESS TRANSFORMATION INITIATIVES DELIVER IMPROVED EFFICIENCY
LAGOS, NIGERIA - 29 July, 2011 Diamond Bank Plc, (Bloomberg: DIAMONDB NL) ("Diamond Bank" or the "Bank"), the provider of comprehensive banking and other financial services to corporate and individual customers across Nigeria and Africa, announces Group results for the six months ended 30 June, 2011.
Speaking from headquarters in Lagos, Alex Otti, Managing Director of Diamond Bank, commented: "The first half of 2011 has seen significant progress for the Bank as the measures taken in 2010 to increase profitability have started to bear fruit. The Bank maintained a strong liquidity position supported by a steady growth in profits for the first half of 2011 with operating profits increasing by 11% year-on-year. The comprehensive targets we set to improve operating efficiencies and the vigorous implementation of our risk management policies have seen the Bank's non-performing loan levels stabilise, despite an increase in the volume of risk assets. While some exceptional items have negatively impacted the Bank's cost to income ratio, we remain confident that our cost efficiency initiatives that are already well underway will enable us to achieve our target cost-to-income ratio of less than 60% by the end of the year. This remains a priority for the Bank going into the second half of the year as the Bank looks to meet challenging CBN targets for these areas"
"The Bank's operational focus in the second half of 2011 will be directed towards its areas of core competence, ensuring that the Bank continues its endeavours in the retail banking sector, prioritising customer experience and operational efficiency as two key deliverables to distinguish Diamond Bank from Nigeria's other retail banks."
Financial Highlights:
Group Profit & Loss - continued profitability with increased operational efficiency
·; Gross earnings of N44.1 billion, a year on year decrease of 4.3% (N46.1billion June 2010)
·; Net interest income of N25.3 billion, an increase of 11.0% (N22.8 billion June 2010)
·; Operating expenses of N26.3 billion, an increase of 13.4% (N23.2 billion June 2010)
·; Operating profit of N13.0 billion, an increase of 11.1% (N11.7 billion June 2010)
·; Profit before tax of N2.0 billion, a decrease of 67.7% (N6.2 billion June 2010)
Group Balance Sheet -increased lending with stable deposits
·; Total Assets Up 10.5% to N657.5 billion (N594.8 December 2010)
·; Risk Assets up 13.4% to N354.1 billion (N312.2 billion December 2010)
·; Customer deposits up 12.8% to N464.8 billion (N412.0 billion December 2010)
·; Balance sheet size up 5.2% to N866.3 billion (N823.6 billion December 2010)
Key Ratios and per share data
·; Cost/income ratio of 66.9%
·; Capital adequacy of 16.2%
·; Loan/deposit ratio of 80.6%
·; NPL ratio at 10.8%
·; ROAE of 2.2%
·; Liquidity ratio of 38% (CBN Statutory minimum of 25%)
·; EPS (diluted) of 17K
(For the detailed Profit and Loss Account, Balance Sheet, Cashflow statement and notes to the accounts, please visit our website - www.diamondbank.com)
- ENDS -
For further information please contact:
Chiugo Ndubisi cndubisi@diamondbank.com +234 (1) 448 9832
Africa Practice / Financial Dynamics
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
Lagos:
Nick Chambers nchambers@africapractice.com +234 813 574 3544
Oberhi Majoroh omajoroh@africapractice.com +234 805 193 7592
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
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