Diamond Bank Plc has
reported growth in key financial parameters for the year ended December 31,
2014. The group recorded a growth of 27.3% in total assets from N1.52 trillion
recorded in the year ended December 31, 2013 to N1.93 trillion for the year
ended December 31, 2014. The growth was driven by a 23.8% growth in deposit
liabilities year-on-year, demonstrating the bank’s strong ability to generate
cheap deposits from the retail and middle market segments. Deposit from customers
grew from N1.21 billion in 2013 to N1.49 billion as at December 31, 2014.
Speaking on the results, the Group Managing Director and
Chief Executive Officer, Mr. Uzoma Dozie stated, “We at Diamond Bank are
pleased to announce continued success in implementing our strategy across the
group, following another year of strong top line growth and an asset base that
grew from N1.5 trillion to N1.9 trillion in 12 months”. Gross earnings
increased by 15.0% from N181.2 billion for the year ended December 31, 2013 to
N208.4 billion in 2014, driven by efficient growth in the volume of business
represented by increase in loan book, and investment securities following the
impressive growth in customer deposits. Consequently, the group achieved an
improvement of 9.6% in net operating income from N116.3 billion in 2013 to
N127.4 billion for the year ended December 31, 2014. Profit before tax,
however, recorded a drop of 12.5% from N32.1 billion in 2013 to N28.1 billion
during the year under review. Also in
the year under review, group loan to customers recorded a growth of 14.8% from
N689 billion as at December 31, 2013 to N791 billion at the end of the 2014
financial year.
According to the CEO, “Amidst regulatory headwinds that
characterized the industry, and a dynamic macroeconomic environment, growth was
recorded in operating income although our profit before tax declined from 2013
levels on the back of higher operating expenses and loan impairment charges.
For continued growth and profitability
in 2015, we willl continue to vigorously drive the implementation of our
alternative banking channels including digital banking; this will help to drive
down operating costs as well as capture a significant share of new and existing
bank account holders as well as a large portion
of the unbanked. We are encouraged by
these positive results and sustenance of our business growth, and affirm our
commitment to continue delivering healthy shareholder returns in 2015 and
beyond.”
The group’s capitalization improved significantly by 50.5%
during the year due to a combination of the impact of its highly successful
rights issue concluded in the last quarter of 2014, as well as the
capitalization of profits for the year ended December 31, 2014. In effect,
shareholders’ funds increased from N138.7 billion as at December 31, 2013 to
N208.8 billion as at December 31, 2014. The strong capital base reflects the
bank’s resilience and its preparedness to grow business in the future despite
the implementation of Basel 2 and 3 by the central bank and the related high
capitalization requirement.
Consequent on the enhanced capitalization, return on average
equity declined from 23.1% in 2013 to 14.7% in 2014. Return on average asset
followed the same trend from 2.1% in 2013 to 1.5% achieved in the year ended
December 31, 2014. Diamond Bank raised $200 million Eurobonds during the year
to finance its long term foreign currency assets.
Diamond Bank is one of the eight banks designated as
systemically important banks by the Central Bank of Nigeria (CBN) in 2013. It
is one of the leading banks in Nigeria, providing reliable and dependable
financial services to corporate and individual customers in Nigeria and West
Africa. The bank is a leading retail banking franchise and remains the leader
in the MSME space in Nigeria.
The bank achieved yet another successful transition of its
management team as its former Group Managing Director - Dr. Alex Otti,
voluntarily resigned his appointment effective October 31, 2014 to pursue other
interests. Mr. Uzoma Dozie whose appointment as the GMD/CEO has already
received the approval of the Central Bank of Nigeria (CBN) has since taken over
the mantle of leadership of the twenty-five year old financial institution,
evidencing the bank’s robust succession plan.
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