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Diamond Bank Plc has released its 2016 financial performance scorecard showcasing stable growth in key parameters, with a 53 per cent growth year on year in total comprehensive Income to N12.1 billion. Non-interest income also rose by 6.9 per cent to N53.9 billion stimulated by transactional fees.
Although the ripple effect of the tough operating business environment impacted negatively on most business, but Diamond Bank in the financial results demonstrated its ability to maintain appreciable growth as revenue from non-interest income, especially its mobile banking increased from N0.41 billion in 2015 to N2.6 billion in 2016.
This accounted for 19.2 percent of N13.4 billion ADC revenue in 2016 with Diamond Mobile Apps usage surging from 6.8 million to 11.0 million, while transaction volume increased from N6.9 billion to N11.5 billion year on year. The Bank’s retail customer count currently stands at more than 13 million.
Uzoma Dozie, chief executive officer of the bank , said that the Bank’s stable growth and continued success in spite of the harsh economic headwinds, is hinged on implementing retail and digital-led strategies that are primed to promote sustainable growth and profitability in the long term.
A review of the financial results for the period indicates that although, its Profit After Tax (PAT) of N3.498 billion was lower than the 2015 position of N5.656 billion, the Bank’s capital adequacy ratio remained stable at 15.0 per cent, equal to the Central Bank of Nigeria’s (CBN) required minimum, signposting the Bank’s preparedness for profitable business expansion.
According to the Bank’s CEO, “the restructuring of Diamond Bank’s operating model was a key development completed in the year. Following its successful implementation, the emerging model has improved customer engagement, strengthened Diamond Bank’s value chain approach to business and delivered efficiencies across the Bank. These measures have helped to improve Diamond Bank’s low-cost deposit base from the retail segment, whilst also facilitating growth in non-interest income and a reduction in interest expenses”.
In the months ahead, the Bank will continue to deploy new technologies and digital applications to drive financial inclusion and convenient banking amidst a decline in the pace of economic activities and weak economic fundamentals. The Bank will also continue to deepen its retail strategy to mop up low cost fund, expand its credit creation structure and increase market share in all market segments.
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