28th Jul 2017 13:07
Diamond Bank Plc
Unaudited Results for the Half Year ended 30th June 2017
http://www.rns-pdf.londonstockexchange.com/rns/4604M_-2017-7-28.pdf
DIAMOND BANK PLC REPORTS HALF YEAR PROFIT BEFORE TAX OF N10.8 BILLION
Half Year highlights
Financial
· Profit before tax up 2.78% year-on-year to N10.8 billion, due to the positive effect of gross income increasing at a faster rate than operating expense.
· Gross earnings increased 16.1% year-on-year to N114.1 billion, due to higher yields from the investments in government securities, and improved yield on loans.
· Interest income increased 31.5% year-on-year to N89.1 billion, reflecting success of efforts targeted at improving this income line.
· Impairment charge of N20.3 billion was a year-on-year increase of 6.91%, but is in line with the Bank's prudent approach to provisioning.
· Total deposits increased marginally by 0.5% while total assets increased by 0.8% year-on-year.
Strategic
· Consistent execution of technology-led retail strategy continues to drive customer acquisition and activation with the introduction of the group and personal savings plan (eSUSU) on our mobile platform, and helping to increase the retention rate of funds.
· Mobile first approach continues to deliver. Mobile banking's share of total transaction count grew from 46% in H1 2016 to 58% in H1 2017 amidst a growing customer base.
· E-payment solutions focusing on convenience, lifestyle, efficiency and mobility continue to grow with expanded revenue from ATMs, cards/POS and online banking.
· Diamond Bank won the 2016 Lafferty Global awards for excellence in Financial Inclusion, recognizing the Bank's leadership in this area, and its alignment with the federal government's drive on financial inclusion.
· Momentum for Diamond Bank's brand is enhanced by its involvement in multiple partnerships with domestic and international NGOs and similar organizations, including the Gates Foundation, Women's World Banking, MTN, Bank of Industry and EFinA, which continue to drive innovation in financial products and service delivery.
· Low cost deposits continue to account for more than 80% of deposits, as pursuit of diversified customer base across market segments through compelling retail offerings continues to succeed and contributes to material risk diversification.
Commenting on the results, Chief Executive Officer, Mr. Uzoma Dozie said: "The positive economic signals witnessed at the beginning of the year continued in the second quarter and we believe this will translate to greater productivity in the months ahead. There have been market driven adjustments in the exchange rate of the naira versus other currencies and this has helped supply into these markets. Overdue trade obligations, which were an issue some months ago, have been addressed significantly and demand is generally being satisfied providing the right conditions for trade activities. Inflation has continued to recede, with the prospect of some GDP growth by year end, even if marginal. Against this backdrop, our income streams remain resilient and considerable growth was recorded in gross earnings.
In the coming months, we plan to sustain the growth momentum by retaining focus on our digital retail strategy and lifestyle banking. A key component of this focus is to continue adding value driving services to our platforms and signing on more merchants to our network.
Looking ahead, we expect that macro conditions will continue to improve slowly as confidence returns to the economy. However, we are taking a patient, long term view, especially in relation to the Oil and Gas sector. Furthermore, we will stay committed to prudential provisioning of sub-par loans to ensure a better loan book in the future. As such, impairment charges may not subside during the year. This conservative approach ensures quality in the long run and will help deliver financial performance consistent with our long-term plan."
Strategic overview
Diamond Bank remained committed to its technology-led retail strategy over the period. Specifically, embedding of technology and digitalization across the business continues to provide benefits including cost optimization, operational efficiencies, improvements in customer experiences and greater access to financial services.
Strategically, the Bank will continue building on the progress made in H1 2017 by focusing on further digitalization of products, services and operations, a relentless focus on improving the quality of the loan book and the further strengthening of the balance sheet.
Group Statement of Comprehensive Income
30 Jun. 2017 N'000 | 30 Jun. 2016 N'000 | YoY Change | |
Interest and similar income | 89,083,306 | 67,763,120 | 31.5% |
Interest expense | (27,393,084) | (17,795,872) | (53.9%) |
Net interest income | 61,690,222 | 49,967,248 | 23.5% |
Net fee and comm. and other income | 21,561,582 | 26,473,257 | (18.6%) |
Impairment Charge | (20,312,100) | (18,998,498) | (6.9%) |
Net operating income | 62,939,704 | 57,442,007 | 9.6% |
Employee benefit expenses | (16,340,047) | (16,891,918) | 3.3% |
Operating expenses | (35,822,018) | (30,064,263) | (19.2%) |
Profit/(loss) before tax | 10,777,639 | 10,485,826 | 2.8% |
Income tax | (1,454,714) | (1,432,039) | (1.6%) |
Profit/(loss) after Tax | 9,322,925 | 9,053,787 | 3.0% |
Other comprehensive income (net) | 2,114,675 | 7,272,309 | (70.9%) |
Total comprehensive income | 11,437,600 | 16,326,096 | (29.9%) |
Group Statement of Financial Position
30 Jun. 2017 N'000 | 31 Dec. 2016 N'000 | YoY Change | |
Cash and bal. with central banks | 334,674,628 | 329,906,916 | 1.4% |
Financial assets held for trading | 12,361,079 | 6,870,235 | 79.9% |
Derivative assets | - | 2,088,208 | (100.0%) |
Assets pledged as collateral | 220,610,691 | 221,898,226 | (0.6%) |
Loans to banks | 92,790,219 | 100,342,964 | (7.5%) |
Loans and advances to customers | 984,345,468 | 995,334,118 | (1.1%) |
Investment securities | 208,540,207 | 235,564,889 | (11.5%) |
Assets held for sale | 3,885,082 | 3,870,200 | 0.4% |
Fixed and intangible assets | 75,191,539 | 72,792,142 | 3.3% |
Deferred tax | 4,984,388 | 4,984,388 | 0.0% |
Other assets | 128,350,260 | 76,146,470 | 68.6% |
Total assets | 2,065,733,561 | 2,049,798,756 | 0.8% |
Deposits from Banks | 136,440,117 | 103,409,297 | 31.9% |
Deposits from Customers | 1,398,790,233 | 1,424,689,527 | (1.8%) |
Current income tax liability | 1,733,282 | 2,027,948 | (14.5%) |
Other liabilities | 73,171,039 | 62,457,895 | 17.2% |
Borrowings | 154,694,565 | 169,182,279 | (8.6%) |
Long term debt | 62,758,761 | 61,323,847 | 2.3% |
Equity | 238,145,564 | 226,707,963 | 5.0% |
Total equity and liabilities | 2,065,733,561 | 2,049,798,756 | 0.8% |
Key Ratios & Per Share Data
• Capital Adequacy Ratio of 15.4% (15.0% Dec 2016)
• Loan to deposit ratio at 70.4% (69.9% Dec 2016)
• Liquidity ratio (Bank) 35.9% (42.3% Dec 2016)
• Cost of risk 3.8% (6.3% Dec 2016)
• Coverage Ratio of 77.5% (65.0% Dec 2016)
• Net Interest Margin of 6.4% (5.9% Dec 2016)
• Cost to income ratio of 62.7% (60.3% Dec 2016)
• NPL ratio of 10.5% (9.4 % Dec 2016)
• ROAE of 8.0% (1.6% Dec 2016)
• EPS of 81(k) (15k Dec. 2016)
The investors' conference call will be held on Thursday August 3, 2017 by 2.00pm. Call details are 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 Thursday August 3, 2017 at 2pm Lagos (2pm London / 9am New York / 3pm Johannesburg & Cape Town) with its senior management to discuss Diamond Bank Plc's financial results for the half year ended June 30th 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
And then entering the following access code:
42389048#
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 Thursday, August 3, 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 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.
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 |
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