Diamond Bank’s profit after tax drops to N3.49bn

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Diamond Bank’s profit after tax dipped by 38.34 per cent during the financial year ended Dec. 31, 2016.

The News Agency of Nigeria (NAN) reports that the bank’s profit after tax dropped to N3.49 billion from N5.66 billion recorded in 2015.

These financials are contained in a statement issued by the bank in Lagos on Monday.

It said that the bank’s gross earnings also dropped to N212.41 billion from the N217.09 billion recorded in the preceding year.

 

 

The statement said that the bank posted 53 per cent growth year-on-year in total comprehensive income of N12.1 billion, while non-interest income inched by 6.9 per cent to N53.9 billion, ostensibly stimulated by transaction fees.

The statement stated that the bank’s capital adequacy ratio remained stable at 15.0 per cent, equal to the Central Bank of Nigeria’s (CBN) required minimum standard.

It said that revenue from non-interest income, especially its mobile banking, increased from N0.41 billion in 2015 to N2.6 billion in 2016.

Mr Uzoma Dozie, the bank’s Chief Executive Officer, was quoted by the statement as saying that the company’s stable growth continued in spite of the harsh economic headwinds.

 

 

Uzoma said that the strategies were primed to promote sustainable growth and profitability in the long term.

He said that the restructuring of bank’s operating model was a key development completed in 2016.

“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,” he said.

Uzoma said that these measures had helped to improve the bank’s low-cost deposit base from the retail segment, whilst also facilitating growth in non-interest income and 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,” Uzoma said.

According to him, the bank will also continue to deepen its retail strategy to mop up low cost funds, expand its credit creation structure and increase market share in all market segments. (NAN)

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