30th Jul 2018 15:58
Diamond Bank Plc
Unaudited Results for the Half Year ended June 30, 2018
Tough six-month trading environment but actions taken to maximise continued digital-led recovery
Financial Highlights
· Net Interest income down year-on-year 14.4% to N46.2 billion caused by lower interest income from loans and investments, and higher interest expense on deposits.
· Impairment charges declined 2.9% to N18.39 billion.
· Non-interest income up 6.4% to N18.8 billion on higher fees from retail transactions on mobile platform.
· Customers loan volume decreased by 3.6% to N728.7 billion as maturities exceeded new loans during period but investments in fixed income securities increased 8.0% to N241.7 billion over the same period.
· Action taken to reduce FX-denominated loans and reduce exposure of balance sheet to exchange risk.
Strategic Highlights
· Digital strategy paying off as digital customers break through 3 million - total income from digital channels set to double from 2016 levels as improved profitability continues.
· Growth of mobile platform transaction fees drives non-interest income with further progress expected from new customer expansion and improved ratio of active customers.
· Mobile platform to spearhead growth in retail loans to 15%-20% of total loan portfolio in the medium term.
· Encouraging adoption of Diamond Bank's Unstructured Supplementary Service Data (USSD) platform (*426#) by retail bank customers.
· Growth opportunity identified in mid-market business banking with target of doubling exposure to this sector from 15% of total loan portfolio to 30% range in the medium term.
Corporate Highlights
· Agreement signed for sale of UK subsidiary to herald realigned group structure.
· Talks underway with CBN for national rather than international banking license with material improvement in CAR expected.
· EY appointed to review and advise on modernization of risk management and underwriting framework to improve outcomes, use of automation, and data analytics.
· Mr. Seyi Bickersteth appointed new Chairman to further bolster board and governance
Commenting on the results, Chief Executive Officer, Mr. Uzoma Dozie said: "At a macro level the Nigerian economy continued to record improvements because of stable, higher than anticipated oil prices. We have witnessed 15 months of expansion reflected in monthly PMI data but investor sentiment has remained mixed caused in part by the election season factor. We have capitalized on the positive macro environment to sustain interest income in the short run with positive prospects for growth, and have made progress in growing non-interest income.
Importantly, we have continued to build awareness of Diamond Bank in the wider financial ecosystem to develop new frontiers in retail banking. Amongst this activity were the Beauty Souk and TechFest events, targeted at entrepreneurs and emerging businesses in the fashion and technology sectors. Our partnership with Lagos Business School's Entrepreneurs Development Center to support young entrepreneurs continued with the "Building Entrepreneurs Today" program.
In addition to retail banking, we are investing more resources in our mid-market business banking services to seize the opportunities emerging in that segment. In the second half of 2018, these investments will lead to improved profitability overall.
Despite a tough six months being reported, the outlook for 2018 remains bright for the bank as we continue to focus on a return to strong profitability and improvement in other KPIs."
Bank Statement of Comprehensive Income
| 30 June 2018 N'000 | 30 June 2017 N'000 | YoY Change |
Interest and similar income | 74,947,477 | 76,530,451 | (2.1%) |
Interest expense | (28,705,898) | (22,539,440) | (27.4%) |
Net interest income | 46,241,579 | 53,991,011 | (14.4%) |
Net fee and comm. and other income | 18,791,450 | 17,665,654 | 6.4% |
Impairment Charge | (18,391,663) | (18,941,271) | 2.9% |
Net operating income | 46,641,366 | 52,715,394 | (11.5%) |
Operating expenses | (44,044,265) | (43,289,184) | (1.7%) |
Profit/(loss) before tax | 2,597,101 | 9,246,210 | (71.9%) |
Income tax | (389,565) | (1,386,932) | 71.9% |
Profit/(loss) after Tax | 2,207,537 | 7,859,278 | (71.9%) |
Other Comprehensive Income (net) | (1,044,458) | 6,900 | (15,237.1%) |
Total Comprehensive Income | 1,163,079 | 7,866,178 | (85.2%) |
Bank Statement of Financial Position
| 30 June 2018 | 31 Dec. 2017 | YoY |
N'000 | N'000 | Change | |
Cash and cash equivalents | 274,399,746 | 299,395,467 | (8.3%) |
Financial assets held for trading | 18,907,360 | 38,333,109 | (50.7%) |
Derivative assets | 1,073,580 | 1,318,528 | (18.6%) |
Assets pledged as collateral | 117,477,903 | 116,357,892 | 1.0% |
Loans to banks | 77,127,605 | 77,610,730 | (0.6%) |
Loans & advances to customers | 728,683,607 | 755,488,058 | (3.5%) |
Investment securities | 241,698,638 | 223,781,594 | 8.0% |
Investment in subsidiaries | 2,000,000 | 2,000,000 | (0.0%) |
Fixed and intangible assets | 69,827,095 | 67,651,317 | 3.2% |
Deferred tax | 4,984,388 | 4,984,388 | 0.00% |
Other assets | 42,416,975 | 100,661,210 | (57.9%) |
Operating Assets | 1,578,596,897 | 1,687,582,293 | (6.5%) |
Assets held for sale and dis. ops |
|
|
|
7,976,260 | 7,976,260 | 0.0% | |
Total assets | 1,587,573,157 | 1,695,558,553 | (6.4%) |
Deposits from Banks | 40,183,418 | 25,861,109 | (55.4%) |
Deposits from Customers | 1,107,725,940 | 1,164,726,773 | (4.9%) |
Other liabilities | 43,639,686 | 51,211,312 | (14.8%) |
Borrowings | 110,668,696 | 169,680,170 | (34.8%) |
Long term debt | 72,105,288 | 70,515,228 | (2.3%) |
Equity | 212,250,129 | 213,563,961 | (0.6%) |
Total liabilities and equity | 1,587,573,157 | 1,695,558,553 | (6.4%) |
Key Ratios & Per Share Data
• Capital Adequacy Ratio of 16.6% (Dec. 2017: 16.7%)
• Loan to deposit ratio at 70.6% (Dec. 2017: 69.9%)
• Liquidity ratio of 40.2% (Dec: 2017; 44.4%)
• Cost of risk 4.7% (Dec. 2017: 6.8%)
• Coverage Ratio of 48.8% (Dec. 2017: 49.1%)
• Net Interest Margin of 6.1% (Dec. 2017: 6.3%)
• Cost to income ratio of 67.7% (Dec. 2017: 60.0%)
• NPL ratio of 12.3% (Dec. 2017: 14.7%)
• ROAE of 2.0% (Dec. 2017: 0.4%)
• EPS of 10k (Dec. 2017: 4K)
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 August 7, 2018 at 2.30pm Lagos (2.30pm London / 9.30am New York / 3.30pm Johannesburg & Cape Town) with its senior management to discuss Diamond Bank Plc's financial results for the half year ended June 30 2018. 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:
Nigeria: +234 19030080South Africa: +27 216724118United Kingdom: 08003589473United Kingdom: +44 3333000804United States Toll: +1 6319131422
And then entering the following PIN:
86701100#
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 by 12 noon of Tuesday, August 7, 2018 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
http://www.rns-pdf.londonstockexchange.com/rns/2082W_1-2018-7-30.pdf
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 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.
Diamond Bank retained excellent banking relationships with several international banks, allowing it to provide a bouquet of world class banking services to suit the business needs of her clients. These international banking partners include Diamond bank UK, Bank of Beirut, Banque Libano- Francaise, BHF Bank, BNP Fortis, BNP Paribas, Byblos Bank, Citibank, Commerzbank, Credit Suisse, Deutsche Bank, FBN bank UK, HSBC Bank, ING Bank, Intesa Sanpaolo, KBC Bank, Marsheq Bank, Standard Bank, Standard Chartered Bank, SMBC Ltd, Svenska Handelsbanken, UBS AG, UNICREDIT.
In addition, the Bank has maintained long standing mutually beneficial business relationships with leading multilateral and bilateral lending and development finance institutions such as International Finance Corporation (IFC), African Import Export Bank (AFREXIM) among others.
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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