25 Nov 2009 12:38
Diamond Bank Plc
Unaudited Results for the 6 months ended 31 October 2009
DIAMOND BANK PLC REPORTS SECOND QUARTER RESULTS, SHOWING CONTINUED BALANCE SHEET STRENGTH AND ENCOURAGING DEPOSIT GROWTH
LAGOS, NIGERIA - 25 NOVEMBER 2009 - 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 its results for the six months ended 31 October 2009. Speaking from headquarters in Lagos, Emeka Onwuka, Managing Director of Diamond Bank commented: "Having fully recognized the loan loss provisions recommended by the CBN in the first quarter results, Diamond Bank is now focused on recovery of its NPLs where it is confident that significant results can be achieved. In addition, with a robust liquidity and capital adequacy ratio, the bank is well positioned to continue to take advantage of opportunities for profitable growth and further expanding its deposit base."
Financial Highlights
Profit & Loss - continued controlled growth in net interest income
Gross earnings of N53.2 billion, an increase of 8% (N49.3 billion Oct '08)
Net interest income of N23.2 billion, an increase of 35% (N17.2 billion Oct '08)
Profit before tax of N1.1billion, a decline of 92% due to full incorporation of loan loss provisions (N13.2 billion Oct '08)
Balance Sheet - encouraging growth in customer deposits
Total Assets up 6% to N651.2 billion (N616.8 billion Oct '08)
Loans up 2% to N336.3 billion (N330.0 billion Oct '08)
Customer deposits up 21% to N469.1 (N386.4 billion Oct '08)
Key Ratios - key ratios well above CBN minimum reflecting strong balance sheet
Annualized ROAE of 0.14%
Capital adequacy ratio of 20% (all tier 1)
Liquidity ratio of 35% (CBN Statutory minimum of 25%)
Strategic Business Units - Highlights
Regional Businesses
- The division recorded loans and advances of N201.6 billion,deposits of N283.1 billion and profit before tax of N4.8 billion for the half year ended October 31, 2009. Commenting on performance, UK Eke, ED Regional Businesses for Lagos & West said: "as facilities have been paid down we have reduced capital at risk in a bid to deleverage the balance sheet. Improving recoveries have also contributed towards reducing our exposure and this puts us on a healthy footing to begin re-deploying capital and growing revenues as the economy recovers into 2010"
- The Regional Businesses division incorporates all banking activities relating to individuals, non-profit organizations, Focus Groups, States and Local Governments, and all companies that are not Multinationals having business turnover of not more than N12 billion annually.
Public Sector
- The division recorded loans and advances of N2.4 billion, deposits of N97.5 billion and profit before tax of N1.2 billion for the half year ended October 31, 2009
- Public sector division incorporates banking activities relating to Federal Government ministries and agencies; Embassies and Foreign Missions.
Corporate Banking
- The division recorded loans and advances of N133.0 billion and deposits of N58.1 billion and posted a loss before tax of N1.2 billion for the half year ended October 31, 2009, due to provisioning in full for loan losses as recommended by the CBN. "In H1, we have seen an improvement in deposits from N50 billion to just over N58 billion" said Uzoma Dozie, ED Corporate Banking. "On the asset side we have made some progress on loan recovery and we see even stronger recoveries coming next year as government efforts to stimulate the economy start to bear fruit. As the economy improves, we also expect lending to start up again allowing importers and manufacturers to reduce stock piles and this will also benefit the recovery process". Commenting on the profit outlook he added that: "loan losses have been fully and conservatively provisioned for in line with CBN guidelines so we do not expect a further deterioration and this puts us in a good position for next year".
- Corporate Banking incorporates all banking activities relating to Multinationals; other large well-structured companies in Oil & Gas, Power & Infrastructures, Financial Institutions, Maritime & Transportation, Telecommunication/General Services, Manufacturing/Trade and Construction, having business turnover of over N12 billion annually.
Subsidiaries
- The subsidiaries contributed a loss before tax of N3.6 billion for the period ended 31st October 2009.
- The Group operates the following subsidiaries: Diamond Bank du Benin, Diamond Capital and Financial Markets Limited, Diamond Securities Limited, Diamond Mortgages Limited, ADIC Insurance Company Limited and Diamond Pension Custody Limited.
- ENDS-
Diamond Bank Plc (Bloomberg: DIAMONDB NL) will host a teleconference call for analysts and investors at a date to be announced following release of its audited results for the 8 months ended 31 December 2009.
- ENDS -
For further information please contact:
Chiugo Ndubisi cndubisi@diamondbank.com +234 (1) 262 6322
Monica Chibuzor-Osuji mchibuzor-osuji@diamondbank.com +234 7039568204
Africa Practice / Financial Dynamics
London:
Ed Gascoigne-Pees ed.gascoigne-pees@fd.com +44 (0)20 7269 7132
Georgina Turner georgina.turner@fd.com +44 (0)20 7269 7136
Lagos:
Nick Chambers nchambers@africapractice.com +234 703 232 3089
Tim Newbold tnewbold@africapractice.com +234 805 494 9866
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, Agusto & Co A+ , 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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