28th Oct 2016 14:42
Diamond Bank Plc
Unaudited Results for the Nine Months ended 30th September 2016
DIAMOND BANK PLC REPORTS COMPREHENSIVE INCOME OF N13.2 BILLION AS TOTAL ASSETS GROW TO N2.1 TRILLION
9 months highlights
Financial
· Non-interest income increased by 38.1% to N37.6 billion on the back of increase in transaction fees, year on year.
· Profit after tax dropped to N3.5 billion due to increased impairment charges.
· Impairment charge increased to N40.3 billion due to a continuation of the bank's prudent approach to provisioning.
· Operating costs and interest expense went down by 2.5% and 22.8% respectively compared to 9 months in 2015. These are benefits from cost containment initiatives, and drive for cheaper deposits, which remain the bank's key strategic focus in the current reporting period.
· Total comprehensive income declined by 26.3% year on year to N13.2 billion.
· Total assets increased by 16.9% to N2.05 trillion as at September 30, 2016.
Strategic
· S & P Global Ratings affirm Diamond Bank's B- rating.
· Despite economic headwinds Diamond Bank continues to build a strong balance sheet targeting improved earnings and operating efficiencies for the future.
· Organizational restructuring that started in Q1 2016 continues to deliver results in terms of focus, service delivery and cost containment.
· Continued focus on digital and IT infrastructure is providing scale and efficiencies.
· Over 13 million retail customers with 8 million of these opening accounts in the last 2 years.
· Diamond Mobile Apps usage continues to grow as transaction count increased from 4.3 million to 7.9 million and volume increased from N4.3 billion to N8.5 billion year on year.
Commenting on the results, Chief Executive Officer, Mr. Uzoma Dozie said: "As we predicted, 2016 is proving to be particularly challenging for the banking industry owing to an interplay of economic headwinds, industry developments and stricter regulation. Nevertheless, we have remained focused on our technology-led retail strategy, building our core business, and developing the platforms and relationships to achieve and manage scale in the future."
"The economic environment has also impacted business and industry as a whole, particularly those in the Oil and Gas sector. For Diamond Bank, this has translated to elevated impairment charges for the third quarter, as we push for a healthier loan book and to comply with regulations. Importantly, however, our regulatory capital remains strong. Liquidity of the bank also remains high and is well above the guidance ratio stipulated by CBN."
"We believe the macro conditions and other external factors will remain challenging for the rest of the year and well into 2017. However, by pursuing our technology-led retail strategy and with our focus on innovation and scalability, we believe the Bank is well-placed to benefit in the medium to long term from the favourable fundamentals in Nigeria, namely a large population, many of which remain unbanked. This strategy stands to benefit all stakeholders, including our shareholders and customers in the long run."
Strategic overview
In the third quarter of 2016, Diamond Bank consolidated and benefitted from the changes it introduced in the first half of the year. For example, through the new organizational structure the operating model has improved customer engagement and interactions, whilst also facilitating growth in non-interest income and a reduction in operating costs and interest expenses.
Against the backdrop of challenging economic headwinds, as well as the focus on cost reduction and the streamlining of processes, often through digital mechanisms, the Bank has improved cross selling across the three core segments of retail, business and corporate banking.
By taking mitigating action and continuing to pursue its technology-led retail strategy over the course of the last nine months, Diamond Bank continues to position itself positively for the future.
Group Statement of Comprehensive Income
30 Sep. 2016 N'000 | 30 Sep. 2015 N'000 | YoY Change | |
Interest and similar income | 107,357,674 | 122,695,460 | (12.5%) |
Interest expense | (28,942,882) | (37,487,354) | 22.8% |
Net interest income | 78,414,792 | 85,208,106 | (8.0%) |
Impairment Charge | (40,261,469) | (19,490,387) | (106.6%) |
Net fee and comm. & other income | 37,625,126 | 27,254,340 | 38.1% |
Net operating income | 75,778,449 | 92,972,059 | (18.5%) |
Personnel expenses | (25,144,785) | (26,438,613) | 4.9% |
Operating expenses | (46,741,406) | (47,938,381) | 2.5% |
Profit/(loss) before tax | 3,892,258 | 18,595,065 | (79.1%) |
Income tax | (381,130) | (2,627,765) | 85.5% |
Profit/(loss) after Tax | 3,511,128 | 15,967,300 | (78.0%) |
Other comprehensive income (net) | 9,676,067 | 1,935,263 | 400.0% |
Total comprehensive income | 13,187,195 | 17,902,563 | (26.3%) |
Group Statement of Financial Position
30 Sep. 2016 N'000 | 31 Dec. 2015 N'000 |
Change | |
Cash and bal. with central banks | 318,564,263 | 361,166,936 | (11.8%) |
Financial assets held for trading | 5,098,918 | 13,116,843 | (61.1%) |
Derivative assets | 58,855 | 161,622 | (63.6%) |
Assets pledged as collateral | 176,597,647 | 172,100,785 | 2.6% |
Loans to banks | 98,200,322 | 60,103,340 | 63.4% |
Loans and advances to customers | 1,041,227,189 | 763,634,827 | 36.4% |
Investment securities | 283,397,096 | 267,337,206 | 6.0% |
Assets held for sale | 4,632,261 | 4,409,085 | 5.1% |
Fixed and intangible assets | 72,509,055 | 67,518,381 | 7.4% |
Deferred tax | 4,984,388 | 4,984,544 | 0.0% |
Other assets | 44,753,967 | 38,698,711 | 15.6% |
Total assets | 2,050,023,961 | 1,753,232,280 | 16.9% |
Deposits from Banks | 104,936,802 | 115,819,590 | (9.4%) |
Deposits from Customers | 1,400,977,515 | 1,233,591,063 | 13.6% |
Current income tax liability | 621,912 | 1,697,816 | (63.4%) |
Other liabilities | 69,581,646 | 46,217,258 | 50.6% |
Borrowings | 183,644,214 | 102,719,571 | 78.8% |
Long term debt | 62,286,088 | 38,577,527 | 61.5% |
Equity | 227,975,784 | 214,609,455 | 6.2% |
Total equity and liabilities | 2,050,023,961 | 1,753,232,280 | 16.9% |
Key Ratios & Per Share Data
• Capital Adequacy Ratio of 15.6% (16.3% Dec 2015)
• Loan to deposit ratio at 79.9% (66.5% Dec 2015)
• Liquidity ratio (Bank) 39.4% (53.8% Dec 2015)
• Cost of risk 5.5% (6.7% Dec 2015)
• Coverage Ratio of 86.5% (100.4% Dec 2015)
• Net Interest Margin of 5.7% (6.1% Dec 2015)
• Cost to income ratio of 61.9% (61.0% Dec 2015)
• NPL ratio of 10.4% (6.9 % Dec 2015)
• ROAE of 2.1% (2.7% Dec 2015)
• EPS of 20(k) (24k Dec. 2015)
The investors' conference call will hold on Friday November 4, by 2.00pm. Call details are shown 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 Friday, November 4, 2016 at 2pm Lagos (1pm London / 8am New York / 3pm Johannesburg & Cape Town) with its senior management to discuss Diamond Bank Plc's financial results for the 9 months ended September 30th 2016. 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: 02031394830
UK Toll-Free: 08082370030
Nigeria Toll Number: 012775820
South Africa Toll Number: 0216724008
USA Toll Number: 02031394830
| |
And then entering the following access code:
75453938#
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 Friday, November 4th 2016 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 range of world class banking services to suit the business needs of our clients. These international banking partners include Bank of Beirut; BanqueLibano-Francaise, BHF Bank, 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.
Investor Relations Contacts Chiugo Ndubisi [email protected] Chief Financial Officer +234 (1) 448 9842
Ifeatu Onwuasoanya [email protected] Head, Investor Relations +234 (1) 448 9866 |
Please click on the link below to view the associated PDF Document
http://www.rns-pdf.londonstockexchange.com/rns/7752N_-2016-10-28.pdf
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