5 Aug 2008 15:12
Diamond Bank Plc
Full Year Results for the year ended 30 April 2008
DIAMOND BANK PLC REPORTS 122% INCREASE IN PROFIT AFTER TAX TO N12.8 BILLION
LAGOS, NIGERIA - 5 August 2008 - 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 consolidated results for the year ended 30 April 2008.
Financial Highlights
Profit After Tax of N12.8 billion, an increase of 122.2% (N5.8 billion Apr 07)
Net Interest income of N23.3 billion, an increase of 41.3%, compared to the prior year period (N16.5 billion Apr 07)
Other Banking Income (Net Fee and Commission income, Trading income, etc.) of N24.4 billion, an increase of 72.4%, compared to the prior year period (N14.2 billion Apr 07)
Cost/income ratio of 56.0%, compared to 67.8% for the prior year period
Net Loans of N270.3 billion, up 131.5% (N116.8 billion Apr 07)
Customer Deposits of N419.7 billion, up 92.8% (N217.7 billion Apr 07)
Total Assets up 94.9% to N625.7 billion (N321.0 billion Apr 07)
Improvement in NPL ratio to 4.0% (6.7% Apr 07)
Basic EPS up 60% to 118 kobo (74 kobo Apr 07) and ROAE of 15% (13.7% Apr 07)
Subsidiaries' contribution to PBT grew to 7.1% (2.4% Apr 07)
Enhanced earnings through diversity and strong controls
Other banking income now accounts for over half of the Bank's operating income due to increased fees on loans and investment banking, creating a more diverse and stable income stream. Other banking income now accounts for 51.1% of operating income, compared to 46.1% for the prior year period.
Diamond Bank has managed its growth ensuring that net interest margin remains at above 7% whilst increased lending activity, coupled with high yields have boosted interest income by 55.1% CAGR 2006-08.
NPLs as a percentage of total loans have decreased to 4.0% for Apr 08. In addition, the NPL coverage ratio has increased to over 90% in Apr 08, compared to 86.1% in Apr 07.
n.b: Apr 07 Group figures restated to include all Diamond Bank subsidiaries (ADIC Insurance Limited, Diamond Mortgages Limited, Diamond Securities Limited, Diamond Pension Fund Custodian Limited, Diamond Bank du Benin S.A.). Previously, Apr 07 Group figures only included Diamond Securities Limited and Diamond Bank du Benin S.A.
Operational Highlights
Corporate Banking (Operating profit of N9.5 billion)
Carved out Diamond Trade Centre to provide timely international trade services.
Repositioned and strengthened Treasury services to meet corporate needs.
Maintained competitive edge in cash management services.
Completed several significant landmark transactions including:
$95 million rig purchase/refurbishment financing for Lonestar Drilling to execute a contract for Shell - Joint Local Administration bank/Joint Arranger. $125 million and N17 billion facility to Lemna Energy Resources for the installation of the Pan Ocean Oil Company's gas processing plant - Guarantees. $180m syndicated loan for the 140MW Geometric Power Project, Aba (IPP) - Joint Lead Arranger. $13.4 million term loan to Slok Nigeria Limited for acquisition of 3 motor tankers and 3 newly built crew and supply vessels. Guaranteed US-EXIM Bank's facility to Dana Airlines for purchase of 3 aircraft worth over $18 million.Retail Banking (Operating profit of N3.7 billion)
Continued branch expansion from 106 to 167 locations, POS terminals up from 119 to 240 and Diamond Bank cards up 60% from 236,646 to 585,988.
Number of Savings account increased 52% from 462,255 to 703,367.
Introduction of NetOne Card which is the first offline biometric card in Nigeria providing an alternative system for the un-banked and under-banked populations of developing economies
Partnered with Shell petroleum Development Company and GroFin of South Africa to float a $30 million Fund to support growth of Nigerian SMEs
Partnership with IFC, availing the Bank with a $20 million facility to support the growth of African Micro, Small and Medium Enterprises (AMSME) - only Bank in Nigeria, and a Resident Expert who has garnered extensive international experience in AMSME funding.
Investment Banking (Operating profit of N3.0 billion)
Participated in several capital raising mandates including
Won several Project Finance advisory mandates including:
Benin & West African Expansion
Emerged as Best Bank in Benin 2007, having embarked on branch expansion to major locations of cross border trade businesses (expected to be at least 15 branches by end-2008)
Invested N2.7 billion in expansion in UEMOA zone: Togo, Senegal and Cote d'Ivoire (estimated GDP of $164 million)
Speaking from headquarter in Lagos, Emeka Onwuka, Managing Director of Diamond Bank commented: "We are delighted to report another record year of profitable growth. This has been achieved by not only growing our existing businesses but improving our diversity of income and maintaining strict controls and processes. We remain confident about the outlook for Diamond Bank and will continue to implement our clear growth strategies to fully exploit the increasing business opportunities."
- ENDS -
Conference Call for Results
Diamond Bank Plc (Bloomberg: DIAMONDB NL) will be hosting a teleconference call for analysts and investors on Thursday 7 August at 11 am BST (7am New York/ 11am London/Lagos) with its senior management to announce Diamond Bank Plc's audited full year results for the twelve month period ended 30 April 2008. 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 (0)203 037 9094 in the UK
+1 866 966 5335 in the US
And then entering the following access code:
6639285
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 until Thursday 14 August by dialing +44 (0)208 196 1998 (UK) and +1 866 583 1035 (US) and entering access code 6639285.
The presentation will be posted to Diamond Bank's website on Friday morning at www.diamondbank.com
- ENDS -
For further information please contact:
Chiugo Ndubisi cndubisi@diamondbank.com +234 (1) 262 6322
Africa Practice / Financial Dynamics
London:
Alex Boycott alexandra.boycott@fd.com +44 (0)20 7269 7272
Azim Datardina adatardina@africapractice.com +44 (0)20 7462 7550
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.
In 2007, and to ensure we grow with the needs of our customers, we streamlined our operations into five distinct strategic business segments: Retail banking, National Corporate, World Corporate, Diamond Capital and Public sector.
* Diamond Bank's A rating by Fitch Ratings, Augusto & Co , and AA- 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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