Diamond Bank Plc has released its 2016 financial performance scorecard showcasing stable growth in key parameters, with a 53 per cent year-on-year growth in total comprehensive Income to N12.1 billion. Non-interest income rose by 7 per cent to N54 billion, stimulated by transactional fees.
Although the ripple effect of the tough operating business environment impacted negatively on most businesses, the financial results show that Diamond Bank maintained appreciable growth as non-interest income increased from N0.41 billion in 2015 to N2.6 billion in 2016 on the strength of its mobile banking platform, which accounted for 19.2 per cent of N13.4 billion revenue in 2016.
Diamond Mobile Apps usage surged from 6.8 million to 11.0 million, with transaction volume increasing from N6.9 billion year-on-year to N11.5 billion. The Bank’s retail customer count currently stands at more than 13 million.
Uzoma Dozie, Diamond Bank’s chief executive officer, 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.
“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,” Dozie said.
“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.”
A review of the financial results for the period indicates that even though 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 in line with the Central Bank of Nigeria’s (CBN) requirements, signalling the Bank’s preparedness for profitable business expansion.
Dozie said that 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.
Loans to customers increased by 30 per cent to N995 billion in 2016 from N763.63 billion in the previous year; loans to other banks rose by 67 per cent to N100 billion from N60 billion in 2015.
Despite the ravaging effect of the implementation of Treasury Single Account (TSA) by the Federal Government and the CBN, customer deposits jumped 16 per cent to N1.4 trillion, from N1.2 trillion in the previous year, an evidence of the strength of confidence in the Bank’s strategic outline.
In addition, the Bank’s total assets sprung 17 per cent to a new high of N2 trillion from the previous year’s N1.8 trillion as impairment charges climbed by 7 per cent to N59 billion, reflecting its prudent provisioning aimed at strengthening performance in the coming business years.
Diamond Bank has continued to grow its corporate and mid-tier business segments. However, the Bank’s focus is retail banking and providing convenient and easy banking to the Micro, Small and Medium-scale Enterprises (MSME) segment, according to the Bank’s CEO.
“As we move into 2017, the fundamentals of the Bank remain very strong and it continues to generate operating profits that are comparable to any of its peers, as evidenced by the 2016 financial results.”
Modestus Anaesoronye
