Tag Archives: Diamond Bank

Diamond Bank drives H1 growth with digital banking

 

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Diamond Bank Plc grew its top-line to N98.5 billion in the first half of this year through its focus on retail digital banking which hit three million customers.

Key extracts of the interim report and accounts of Diamond Bank Plc for the six-month period ended June 30, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed that gross earnings rose to N98.5 billion in first half 2018 as against N97.9 billion recorded in comparable period of 2017. Non-interest income rose by 6.4 per cent to N18.8 billion on higher fees from retail transactions on mobile platform while customers’ loan volume decreased by 3.6 per cent to N728.7 billion as maturities exceeded new loans during the period. Investments in fixed income securities increased by 8.0 per cent to N241.7 billion over the same period.

Although the bank’s net interest income reduced by 14.4 per cent to N46.2 billion due to lower interest income from loans and investments, and higher interest expense on deposits; impairment charges declined by 2.9 per cent to N18.39 billion. Pre and post tax profits stood at N2.92 billion and N1.8 billion respectively in first half 2018 as against N9.52 billion and N8.02 billion recorded in corresponding period of 2017.

Chief Executive Officer, Diamond Bank Plc, Mr. Uzoma Dozie said the first half report underscored the bank’s strong focus on the Nigerian market, especially the retail business segment through its digital penetration strategy.

He pointed out that the first half results showed that the bank’s digital strategy is paying off as the institution recorded a milestone figure of three million digital customers as well as a significant increase in its mobile platform transaction fees.

He noted that the economy has continued to record improvements because of stable, higher than anticipated oil prices adding that the economy has witnessed 15 months of expansion, although investor sentiment has remained mixed caused in part by the election season factor.

“We have capitalised on the positive macro environment to sustain interest income in the short run with positive prospects for growth and have made progress in growing non-interest income. Importantly, we have continued to build awareness of Diamond Bank in the wider financial ecosystem to develop new frontiers in retail banking,” Dozie said.

Bickersteth Replaces Ogbechie as Diamond Bank Chairman

                                                                                     Mr Oluseyi Bickersteth

Diamond Bank has announced the appointment of Mr Oluseyi Bickersteth as its new Chairman of the Board of Directors.

Mr Bickerseth is taking over the position following the retirement of Professor Chris Ogbechie after the completion of his tenure. He retired from the board with effect from March 31, 2018.

The new Chairman’s appointment, according to a statement issued by the financial institution, took effect from June 26, 2018.

Diamond Bank noted that the appointment comes against the backdrop of Mr Bickerseth’s strong values and vision which both align with the bank’s current focus of delivering excellent performance by leveraging technology to provide financial solutions to retail markets.

Commenting on the appointment, GMD/CEO of Diamond Bank, Mr Uzoma Dozie, stated that, “We are honoured to have Mr Oluseyi Bickersteth join and chair our Board of Directors. We welcome his wealth of experience and look forward to his valuable contributions.”

Mr Bickersteth holds a B.Sc. in Economics from the University of Ibadan and an M.Sc. in Economics from the York University in Canada. He is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and Chartered Institute of Taxation of Nigeria (CITN).

Prior to being the Chairman of KPMG Africa Practice and National Senior Partner of the Nigerian Practice, he was the Head of Tax and Regulatory practice and served as Engagement Partner on major tax advisory and compliance projects.

Mr Bickersteth played an oversight and coordinating role in KPMG’s delivery of professional services to companies in the Gulf of Guinea, Nigeria, Cameroun, Angola, Equatorial Guinea & Gabon. He also heads the Oversight Committee for KPMG Africa.

He was involved in Vision 2010 of the Federal Government of Nigeria, which prepared a memorandum on the vision for Nigeria, by year 2010.

He has also chaired a working group on ‘Nigerian Tax Reforms 2003 & Beyond’ for the Federal Government of Nigeria and has served on the technical committee of the Federal Government that prepared the Petroleum Industry Bill (PIB) for the oil and gas sector.

Ecobank to raise a 5-year dollar denominated bond

Ecobank has announced plans to raise a five-year dollar-denominated bond. The bank has therefore mandated international lenders to arrange investors meetings in the United States and Britain.

According to Reuters, proceeds from the bond offer will be used for debt refinancing among other things. The bank has also appointed Deutsche Bank, Standard Bank, and Standard Chartered to arrange meetings.

Currently, rates in the US have gone up this means the bank is paying more. There are, however, concerns about the exchange rate volatility which is currently low in the country but a swing may mean the bank will have to pay more Naira to offset its dollar debt obligation.

Tier two banks in the country had a tougher time dealing with series of crisis, and many of them have had to embark on a capital raise. Diamond bank, disposed off its non-essential assets to boost its capital base.

Some of them, may not pay dividends for the 2017 financial year due to recent guidelines issued by the Central Bank of Nigeria (CBN).

Also, another tier two bank, Union Bank is also considering raising a Eurobond with plans to deploy the proceeds to boost the bank’s capital base and lending to the agriculture sector.

Recall that Ecobank Bank had recently announced the successful placement of a $400 million convertible debt. The convertible debt was structured in three tranches, the first was a convertible loan facility of $250 million arranged through Public Investment Corporation (PIC) of South Africa, an institutional holder.

The second tranche consisting of $140 million convertible notes was fully subscribed to by Qatar National Bank (QNB), also an institutional shareholder.

While the third tranche comprising $10 million convertible notes was reserved for shareholders other than those who participated to the tune of $1.11 million. The remaining balance was subscribed by QNB, bringing QNB’s participation in both tranches to $148.9 million.

Ecobank in its 2018 Q1 financial results for the period ended 31st March 2018, recorded 11% surge in revenue from ₦178,388 billion Q1 2017 to ₦198,615 billion in Q1 2018. Profit Before Tax also increased by 48% from ₦22,895 billion in Q1 2017.

Ecobank Transnational Incorporated ETI was founded in 1988 under a private sector initiative spearheaded by the Federation of West African Chambers of Commerce and Industry, with the support of the Economic Community of West African States (ECOWAS)  The bank has operations in 36 African countries and employs over 17,000 people.

ETI shares are currently trading at N20.05 on the floor of the Nigerian Stock Exchange (NSE) with a one year return of 47.97%.