30th Oct 2017 13:52
Diamond Bank Plc
Unaudited Results for the Nine Months ended September 30, 2017
DIAMOND BANK PLC's NINE MONTHS GROSS INCOME RISES TO N168.4BILLION
Nine months highlights
Financial
· Gross earnings rose by 11% year-on-year to N168.4 billion, driven by an increase in interest income.
· Profit before tax increased by 71% year-on-year to N6.7 billion.
· Impairment charges are down 12% year-on-year to N35.3 billion due to a prudent approach to loan underwriting.
· Operating costs are up 16% year-on-year due to investment in technology in accordance with the bank's strategy.
· Staff costs are down 5% year-on-year as more transactions move from branches to mobile platforms.
Strategy
· Use of mobile and online banking continues to rise with the number of mobile transactions increasing 97% year-on year.
· Roll-out of technology and digital framework continues, as reliance on the physical branch network is decreasing.
· The Building Entrepreneurs Today (BET) initiative, now in its seventh year, launched under the theme 'Innovation and Social Impact'.
· Partnerships with domestic and international bodies including MTN, The Gates Foundation and World Women Banking continue to promote innovation in financial inclusion.
· Accolades within the last quarter include Best Bank in Financial Inclusion Services and Best Mobile Banking App (Businessday Banking Awards).
Commenting on the results, Chief Executive Officer, Mr. Uzoma Dozie said: "We are happy with the progress we have made against our technology-led retail strategy and in areas of our financial performance, but there is more to do in the remaining quarter and beyond. Specifically, we are committed to further developing our technology and operational infrastructure that allows us to scale rapidly, efficiently across Nigeria.
"Looking ahead, and in view of the huge opportunities in the Nigerian economy, we plan to focus a lot more attention on the domestic market. The economy is expected to improve further during the remainder of the year and into 2018, and we have lined up a bouquet of financial and capacity building support for small and medium business owners. We have revamped our propositions to this segment considering the impact on the economy. This is fully aligned to our ethos of fuelling growth across Nigeria by supporting businesses and entrepreneurship.
"Improvement to our capital adequacy ratio will also be a key focus for the remainder of the year as we look to position the business optimally for profitable growth in 2018."
Group Statement of Comprehensive Income
30 Sep. 2017 N'000 | 30 Sep. 2016 N'000 | YoY Change | |
Interest and similar income | 131,651,065 | 107,357,674 | 22.6% |
Interest expense | (42,148,825) | (28,942,882) | (45.6%) |
Net interest income | 89,502,240 | 78,414,792 | (14.1%) |
Impairment Charge | (35,302,683) | (40,261,469) | 12.3% |
Net fee and comm. & other income | 30,740,125 | 37,625,126 | (18.3%) |
Net operating income | 84,939,682 | 75,778,449 | 12.1% |
Personnel expenses | (23,898,865) | (25,144,785) | 5.0% |
Other operating expenses | (54,368,741) | (46,741,406) | (16.3%) |
Profit/(loss) before tax | 6,672,076 | 3,892,258 | 71.4% |
Income tax | (761,334) | (381,130) | (99.8%) |
Profit/(loss) after Tax | 5,910,742 | 3,511,128 | 68.3% |
Other comprehensive income (net) | 3,264,250 | 9,676,067 | (66.3%) |
Total comprehensive income | 9,174,992 | 13,187,195 | (30.4%) |
Group Statement of Financial Position
30 Sep. 2017 N'000 | 31 Dec. 2016 N'000 |
Change | |
Cash and bal. with central banks | 316,242,426 | 329,906,916 | (4.1%) |
Financial assets held for trading | 13,795,901 | 6,870,235 | 100.8% |
Derivative assets | 328,326 | 2,088,208 | (84.3%) |
Assets pledged as collateral | 223,531,069 | 221,898,226 | 0.7% |
Loans to banks | 95,713,413 | 100,342,964 | (4.6%) |
Loans and advances to customers | 975,626,323 | 995,334,118 | (2.0%) |
Investment securities | 168,824,433 | 235,564,889 | (28.3%) |
Assets held for sale | 3,886,011 | 3,870,200 | 0.4% |
Fixed and intangible assets | 77,186,339 | 72,792,142 | 6.0% |
Deferred tax | 4,984,388 | 4,984,388 | 0.0% |
Other assets | 116,353,361 | 76,146,470 | 52.8% |
Total assets | 1,996,471,990 | 2,049,798,756 | (2.6 %) |
Deposits from Banks | 123,555,831 | 103,409,297 | 19.5% |
Deposits from Customers | 1,339,048,681 | 1,424,689,527 | (6.0%) |
Current income tax liability | 1,038,726 | 2,027,948 | 48.8% |
Other liabilities | 79,547,653 | 62,457,895 | 27.4% |
Borrowings | 153,868,432 | 169,182,279 | 9.1% |
Long term debt | 63,529,711 | 61,323,847 | 3.6% |
Equity | 235,882,956 | 226,707,963 | 4.0% |
Total equity and liabilities | 1,996,471,990 | 2,049,798,756 | (2.6 %) |
Key Ratios & Per Share Data
• Capital Adequacy Ratio of 15.8% (15.0% Dec 2016)
• Loan to deposit ratio at 79.3% (69.9% Dec 2016)
• Liquidity ratio (Bank) 32.7% (42.3% Dec 2016)
• Cost of risk 4.5% (6.3% Dec 2016)
• Coverage Ratio of 78.3% (65.0% Dec 2016)
• Net Interest Margin of 6.2% (5.9% Dec 2016)
• Cost to income ratio of 65.1% (60.3% Dec 2016)
• NPL ratio of 9.5% (9.4% Dec 2016)
• ROAE of 3.4% (1.6% Dec 2016)
• EPS of 25(k) (15k Dec. 2016
Conference Call for Results
Diamond Bank Plc (Bloomberg: DIAMONDB NL / Reuters DIAMONB.LG) will be hosting a teleconference call for analysts and investors on Monday, November 6, 2018 by 3 pm, with its senior management to discuss Diamond Bank Plc's financial results for the 9 months ended September 30, 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
Nigeria Toll Number: +234 19030080
South Africa Toll Number: +27 216724118
USA Toll Number: +1 6319131422
And then entering the following access code: 67283133#
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 Monday, November 6, 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, providing enhanced customer experience through innovation and technology. Regarded as supporter of lifestyle trends, its mobile banking app, "Diamond Mobile" currently has over 2 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 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 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 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/9936U_-2017-10-30.pdf
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