Annual Financial Report - Replacement

Diamond Bank Plc

Audited Results for the period ended 31 December 2011

DIAMOND BANK PLC REPORTS 46% INCREASE IN CUSTOMER DEPOSITS FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2011

LAGOS, NIGERIA - 30th March 2012 - Diamond Bank Plc, (Bloomberg: DIAMONDB NL/ Reuters: DIAMONB.LG) ("Diamond Bank" or the "Group"), the provider of comprehensive banking and other financial services to corporate and individual customers across Nigeria and Africa announces its results for the twelve months ended 31 December 2011.

Speaking from headquarters in Lagos, Dr Alex Otti, Managing Director of Diamond Bank commented: "Diamond Bank has made significant progress in cleaning up the risk assets portfolio during 2011 and is a far stronger institution today than it was this time last year. The new management team which took office under my leadership in March 2011 has consistently delivered on its promise to cautiously provide for NPLs and manage the impact of divestment from our non-banking subsidiaries while growing the retail banking franchise and positioning us to resume loan growth in the corporate space. We have restructured the bank's earnings drivers in favour of non interest bearing income and risk asset generation in the top mid tier corporate space and the retail consumer space. We will continue to capitalise on our head start in the retail space by gaining more market share in 2012 servicing a rising number of Nigeria's unbanked population. Risk management is and will remain central to this strategy ensuring our operating profitability is converted into rising and sustainable returns to our shareholders going forward."

Financial Highlights

Group Profit & Loss

·; Operating income of N83.4 billion up 12% (N74.2 billion Dec 2010)

·; Net interest income of N55.6 billion, up 11% (N49.9 billion Dec 2010)

·; Other income of N27.8 billion up 14% (N24.3 billion Dec 2010)

·; Loss after tax of N11.3 billion (N1.3 profit before tax Dec 2010)

·; Loan Loss Provision up 93% to N44.1 billion (N22.8 billion Dec 2010)

·; Net loss of N11.9 billion from non-banking subsidiary divestment

Group Balance Sheet

·; Total Assets up 11% quarter on quarter to N803.7 billion and up 35% year on year (N725.1 billion Sept 2011 and 594.8 billion Dec 2010)

·; Customer deposits up 14% quarter on quarter to N601.7 billion and up 46% year on year (N529.3 billion Sept 2011 and N412.0 billion Dec 2010)

·; Loans to customers (net) up 3% quarter on quarter to N397.4 billion and up 27% year on year (N386.4 billion Sept 2011 and N312.2 billion Dec 2010)

Key Ratios

·; Capital Adequacy Ratio of 13.9 % (16.6% Dec 2010)

·; NPL ratio of 9.4 % (14.8% Dec 2010)

·; Liquidity ratio of 46.3 % (41.5% Dec 2010)

·; Loan to deposit ratio at 69.6% (83.7% Dec 2010)

·; Net Interest Margin of 8.8% (10.1% Dec 2010)

·; Cost/income ratio of 66.6% (62.8% Dec 2010)

Operational Highlights - Consistent growth in retail banking activity

·; Total retail deposits up 30% to N230 billion (N177 billion in Dec. 2010).

·; Retail monthly fee income of over N600 million monthly from less than N500 million beginning of the year.

·; 1,200 direct sales agents across the country currently generating 2,000 new SME accounts per week.

·; Over 100% growth in retail assets year-on-year