27th Apr 2017 16:32
Diamond Bank Plc
Unaudited Results for the First Quarter ended 31st March 2017
DIAMOND BANK PLC REPORTS FIRST QUARTER PROFIT BEFORE TAX OF N5.6 BILLION
First Quarter Highlights
Financial
· Profit before tax of N5.6 billion from operations in first quarter of 2017, a 17% decrease year on year.
· Interest and similar income of N44.5 billion, an increase of 25% year on year.
· Year on year, other operating expenses and interest expense increased by 16% and 25% respectively, while personnel cost dropped by 3%.
· Impairment charge of N10.6 billion, an increase of 20% year on year, reflects continued prudent provisioning.
· Net operating income up 3.7% year on year to N31.7 billion.
· Total assets increased by 1.2% within the quarter to N2.08 trillion as at March 31, 2017.
· Capital Adequacy Ratio increases quarter on quarter to 15.1%.
Strategic
· Ongoing implementation of technology-led retail strategy drives customer acquisition, activation and retention.
· Mobile first philosophy continues to deliver results, with quarterly revenue from mobile banking increasing from N270 million in Q1 2016 to N1.2 billion in Q1 2017.
· Diamond Mobile Apps usage continues to grow as quarterly transaction volume increased from N1.1 billion in March 2016 to N2.6 billion in March 2017.
· E-payment solutions focusing on convenience, lifestyle, efficiency and mobility continue to gain traction with expanded revenue from ATMs, cards/POS and online banking.
· The Bank of Industry appointed Diamond Bank as a partner in the administration of the N140 billion Government Enterprise Empowerment Program (GEEP). This is an indication of the bank's rating as a major player in the MSME segment.
· Continued pursuit of a diversified customer base across market segments through retail offerings. This helped in the mobilization of low cost deposits which closed the quarter accounting for over 80% of total deposits, as well as diversification of associated risks.
Commenting on the results, Chief Executive Officer, Mr. Uzoma Dozie said: "Since the beginning of 2017, there have been positive developments in the wider economy which we believe will translate to greater productivity in the months ahead. For example, the inflation rate is beginning to recede and there appears to be more foreign exchange available to stimulate trade, though the quantum of unmet demand is still high. Against this economic background, our streams of income remain resilient and considerable growth was recorded in interest income [for the quarter].
I am delighted that our focus on digital and mobile banking is gaining further traction, with the year on year increases in mobile revenue and app usage showing tangible results. It is clear that customers value the ease and convenience of our services across multiple platforms and that this is leading to greater volumes of activity and enhanced relationships. I am confident that by maintaining our focus on the technology-led retail strategy, we will continue to build upon this positive momentum.
Looking forward, barring any surprises in the global oil prices, we expect that macro conditions will continue to improve albeit slowly. Recovery by businesses will be slower and in view of our commitment to prudential provisioning and ensuring a much better loan book, impairment charges may not abate during the year. This very conservative approach to managing our loan book assures of its quality in the long run and in general should help deliver the numbers that are consistent with our long-term plan."
Strategic Overview
Building upon positive momentum in 2016, Diamond Bank commenced 2017 focused on harnessing further benefits from its technology-led retail strategy. In particular, the Bank continued to focus on cost containment, driving operational efficiencies, and the roll-out of technology and innovation to improve customer experiences and access to financial services.
The Bank's strategy to expand reach and service through digital channels has helped customers connect to new markets with access to new people and more information allowing for better decisions.
Furthermore, new and existing partnerships continued to be nurtured in order to help drive breakthroughs into new markets. For example, the recruitment of new vendors into the Bank's merchant network continued, and engagement with non-profits such as the Gates Foundation and Enterprise Development Center of LBS helped unlock entrepreneurship potential across different demographics.
Fundamentally, despite challenging macro conditions and stricter regulation, Diamond Bank continues to build an attractive business underpinned by a robust balance sheet, improved liquidity and capital buffers.
Group Statement of Comprehensive Income
31 Mar. 2017 N'000 | 31 Mar. 2016 N'000 | YoY Change | |
Interest and similar income | 44,526,707 | 35,708,593 | 24.7% |
Interest expense | (13,070,714) | (10,444,105) | (25.1%) |
Net interest income | 31,455,993 | 25,264,488 | 24.5% |
Net fee and comm. and other income | 10,840,478 | 14,138,833 | (23.3%) |
Impairment Charge | (10,580,193) | (8,812,309) | (20.1%) |
Net operating income | 31,716,278 | 30,591,012 | 3.7% |
Personnel expenses | (8,140,110) | (8,416,509) | 3.3% |
Other Operating expenses | (17,992,634) | (15,480,541) | (16.2%) |
Profit/(loss) before tax | 5,583,534 | 6,693,962 | (16.6%) |
Income tax | (775,466) | (933,521) | 16.9% |
Profit/(loss) after Tax | 4,808,068 | 5,760,441 | (16.5%) |
Other comprehensive income (net) | 826,895 | 28,125 | 2,840.1% |
Total comprehensive income | 5,634,963 | 5,788,566 | (2.7%) |
Group Statement of Financial Position
31 Mar. 2017 N'000 | 31 Dec. 2016 N'000 | YoY Change | |
Cash and cash equivalents | 318,167,764 | 329,906,916 | (3.6%) |
Financial assets held for trading | 12,824,111 | 6,870,235 | 86.7% |
Derivative assets | 12,881 | 2,088,208 | (99.4%) |
Assets pledged as collateral | 227,730,847 | 221,898,226 | 2.6% |
Loans to banks | 105,468,929 | 100,342,964 | 5.1% |
Loans and advances to customers | 992,945,030 | 995,334,118 | (0.2%) |
Investment securities | 254,805,659 | 235,564,889 | 8.2% |
Investment properties | 3,883,784 | 3,870,200 | 0.4% |
Fixed and intangible assets | 73,656,550 | 72,792,142 | 1.2% |
Deferred tax | 4,984,388 | 4,984,388 | 0.0% |
Other assets | 80,788,888 | 76,146,470 | 6.1% |
Total assets | 2,075,268,831 | 2,049,798,756 | 1.2% |
Deposits from Banks | 114,431,076 | 103,409,297 | 10.7% |
Deposits from Customers | 1,435,735,044 | 1,424,689,527 | 0.8% |
Current income tax liability | 2,681,911 | 2,027,948 | 32.2% |
Other liabilities | 65,774,794 | 62,457,895 | 5.3% |
Borrowings | 162,016,781 | 169,182,279 | (4.2%) |
Long term debt | 62,275,304 | 61,323,847 | 1.6% |
Equity | 232,353,921 | 226,707,963 | 2.5% |
Total liabilities and equity | 2,075,268,831 | 2,049,798,756 | 1.2% |
Key Ratios & Per Share Data
• Capital Adequacy Ratio of 15.1% (15.0% Dec 2016)
• Loan to deposit ratio at 69.1% (69.9% Dec 2016)
• Liquidity ratio (Bank) 41.7% (42.3% Dec 2016)
• Cost of risk 4.0% (6.3% Dec 2016)
• Coverage Ratio of 69.9% (65.0% Dec 2016)
• Net Interest Margin of 6.4% (5.9% Dec 2016)
• Cost to income ratio of 61.8% (60.3% Dec 2016)
• NPL ratio of 10.3% (9.5 % Dec 2016)
• ROAE of 8.4% (1.6% Dec 2016)
• EPS of 21(k) (15k Dec. 2016)
The investors' conference call will hold on Tuesday May 9, 2017 by 3.00pm. Call details are highlighted below.
Conference Call for Results
Diamond Bank Plc (Bloomberg: DIAMONDB NL / Reuters DIAMONB.LG) will be hosting a teleconference call for analysts and investors on Tuesday May 9th 2017 at 3pm Lagos (3pm London / 10am New York / 4pm Johannesburg & Cape Town) with its senior management to discuss Diamond Bank Plc's financial results for the first quarter ended March 31st 2017. There will be an opportunity at the end of the call for management to take questions from investors and analysts.
The teleconference call facility can be accessed by dialing:
UK Toll Number: +44 3333000804
UK Toll-Free: 08003589473
South Africa Toll Number: 0800111446
USA Toll Number: +1 8777889027
And then entering the following access code:
57142009#
Participants should register for the call at least five minutes before the start of the presentation.
A pdf copy of the presentation will be posted to Diamond Bank's website on the morning of Tuesday, May 9, 2017 at www.diamondbank.com.
For the detailed Profit and Loss account, Balance Sheet, Cashflow statement and notes to accounts, please visit our website - http://www.diamondbank.com
About Diamond Bank Plc
Diamond Bank Plc began as a private limited liability company on March 21, 1991 (the company was incorporated on December 20, 1990). Ten years later, in February 2001, it became a universal bank. In January 2005, following a highly successful Private Placement share offer which substantially raised the Bank's equity base, Diamond Bank became a public limited company. In May 2005, the Bank was listed on The Nigerian Stock Exchange.
Today, Diamond Bank is the fastest growing retail bank in Nigeria with a track record of high quality banking solutions for customers. It's the lead driver of financial inclusion and enhanced customer experience through innovation and technology. Regarded as supporter of lifestyle trends, it mobile banking app, "Diamond Mobile" currently has over 1 million active subscribers on its platform. Diamond Bank has over the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships.
It has also played a leading role in partnering with domestic and International bodies such as Women's World Banking, Bill and Melinda Gates Foundation, MTN etc. to create easy access to financial services for the unbanked.
We have retained excellent banking relationships with a number of well-known international banks, allowing us to provide a bouquet of world class banking services to suit the business needs of our clients. These international banking partners include Diamond bank UK, Bank of Beirut; BanqueLibano-Francaise, BHF Bank, BNP Fortis, BNP Paribas, Byblos Bank, Citibank, Commerzbank, Credit Suisse, Deutsche Bank, FBN (UK) Limited, HSBC Bank, ING Bank, KBC Bank, Mashreq Bank, Nordea Bank, SMBC Ltd, Standard Bank, Standard Chartered, SvenskaHandelsbanken, UBS Zurich.
More information can be found at www.diamondbank.com
Investor Relations Contacts Chiugo Ndubisi [email protected] Chief Financial Officer +234 (1) 448 9832
Ifeatu Onwuasoanya [email protected] Head, Investor Relations +234 (1) 448 9866
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Please click on the link below to view the associated PDF Document
http://www.rns-pdf.londonstockexchange.com/rns/6057D_-2017-4-27.pdf
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