Half Yearly Report

Diamond Bank Plc

Unaudited Results for the 6 months ended 30 June 2010

DIAMOND BANK PLC REPORTS RESULTS FOR THE 6 MONTH PERIOD ENDED 30 JUNE 2010, DEMONSTRATING CONTINUED GROWTH IN LOWER_COST DEMAND DEPOSITS AND COST EFFICIENY GAINS BEGINNING TO SHOW THROUGH

LAGOS, NIGERIA - JULY 20, 2010 - 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 6 months ended 30 June 2010.

Speaking from headquarters in Lagos, Emeka Onwuka, Managing Director of Diamond Bank commented: "The improving global financial and economic landscape has led to increased confidence in the Nigerian banking system and the gradual rebound of the stock market has given a clear indication of the renewed confidence in the Nigerian capital market. At Diamond Bank, we have adhered to our organic growth strategy and have continued to grow our deposits over the period. Importantly, low-cost deposits now account for over 60% of our total deposits. Our process reengineering project (Sparkle) initiative has also begun to deliver efficiency gains and in addition we have opened more office locations with improved cost efficiencies which are increasing our ability to sustainably secure low cost funding for the group.

The newly commissioned Enterprise Risk Management Framework and membership of two credit risk agencies has improved our risk metrics considerably and enabled the bank to set and manage its risk appetite according to our strategy. For the rest of the year, we will continue to focus on the retail segment of our business, with several initiatives already started this year including our reduction in lending rates and zero percent interest automobile loans. This, coupled with Project Sparkle actively re-engineering our processes within the bank, enables us to continue to enjoy the benefits of the rebounding economy while remaining a major player in the middle market and making in-roads to a larger share of the corporate and public sector banking spaces."

Financial Highlights

Profit & Loss - return to improving profitability with lower loss provisioning

·; Gross earnings of N46.1 billion for the 6 month period ended 30 June 2010 (N58.9 billion 6 month period ended 30 June 2009). Earnings slowed by reduction in lending to manage risk assets.

·; Net interest income of N22.7 billion for the period, a decrease of 3% versus the comparable prior year period (N23.5 billion June 2009)

·; Operating income of N34.9 billion (N38.5 billion June 2009)

·; Provision for losses of N5.5 , a decrease of 78% versus the comparable prior year period (N24.5 billion June 2009)

·; Profit before tax of N6.2 billion for the period, compared to loss before tax of (N7.9) billion for the comparable prior year period.

Balance Sheet - continued growth in customer deposits

·; Total Assets down 2% to N638 billion (N653.4 billion June 2009)

·; Loans and advances to customers down by 22.5% to N286 billion (N370 billion June 2009)

·; Customer deposits up 18% to N461 billion (N389 billion June 2009)

Key Ratios - key ratios well above CBN minimum reflecting strong balance sheet

·; Annualized ROAE of - 8.6 %

·; Capital adequacy ratio of 17.5% (CBN benchmark of 10%)

·; NPL ratio of 17.7%

·; Coverage ratio of 86.4%

·; Ratio of OPEX to number of branches is N108.6 million (N112.3 million June 2009)

·; Cost/income ratio of 66%

·; Loan to deposit ratio of 74%

·; Liquidity ratio of 44% (CBN Statutory minimum of 25%)

Strategic Business Units - Highlights

Regional Businesses (comprising Retail Banking and National Corporate)

- The division produced a profit before tax of N3.7 billion for the 6 month period ending 30 June 2010. This was up from a loss of N900 million for the comparable prior year period. "The growth is largely on the back of retail banking where deposits are up by 35% in the first half of the year, whilst cost of funds has more than halved. Retail asset growth is 38% in the first half of the year, helped by our successful partnership with Honda, Kia, Peugeot, Mitsubishi and Volkswagen. Sales of new accounts are close to 30,000 per month which has helped underlying recurring monthly fee income to grow by 41% in the half year to N312 million per month in June," said Garry Marsh, Head of the Retail Banking Unit.

Corporate Banking

- Corporate Banking produced a profit before tax of N2.3 billion for the 6 month period ending 30 June 2010. This compared to a loss before tax of N3.7 billion for the comparable prior year period. Commenting on the results Uzoma Dozie, ED Corporate Banking said; "The corporate banking division has continued to invest in expanding its customer base and collection strategies in the last quarter. We have expanded our pipeline while at the same time signed on new names with the potential for strong cash flows. We have also commenced cash pickups with some of our major clients and are introducing e-payment solutions to increase our client satisfaction. As part of our strategy for the rest of the year, the corporate banking division will deliver proposals to identified clients on dealer finance and distribution schemes which will increase account activity and business volumes."

Operational Highlights

- Improvement in staff productivity due to increase in centralized processing.

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- Business locations have increased to 212 from 203 at the end of December 2009 while the operating expense per branch has dropped

- Focus on recoveries and restructuring of non-performing facilities. Remedial Asset Management Division fully in place.

- Commenced in-depth analysis of subsidiary activities with the view to divest or integrate the business into the bank where possible.

 (For the detailed Profit and Loss Account, Balance Sheet, Cashflow statement and notes to the accounts, please visit our website - www.diamondbank.com)

- ENDS-

Conference Call for Results

Diamond Bank Plc will be hosting a teleconference call for analysts and investors on 22nd July 2010, at 4 pm UK time (11 am New York/ 4 pm Lagos) with its senior management to announce Diamond Bank Plc's results for the 6 months ended 30 June 2010. There will also 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:

+44 (0)20 7138 0816 International

+1 718 354 1171 in the US

And then entering the following access code: 1702425

Participants should register for the call at least five minutes before the start of the presentation.

For those who are unable to listen to the live call, a replay facility will be available until midnight on the 4th August by dialing +44 (0)20 7111 1244 (UK) and +1 347 366 9565 (US) and entering access code 1702425#

The presentation will be posted to Diamond Bank's website on morning of 22nd July at www.diamondbank.com

- ENDS -

For further information please contact:

Chiugo Ndubisi [email protected] +234 (1) 448 9832

Africa Practice / Financial Dynamics

London:

Ed Gascoigne-Pees [email protected]  +44 (0)20 7269 7132

Kat Bloom [email protected] +44 (0)20 7269 7223

Lagos:

Nick Chambers [email protected] +234 703 232 3089

Oberhi Majoroh [email protected] +234 805 193 7592 

Notes to editors:

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 one of the leading banks in Nigeria* - respected for its excellent service delivery, driven by innovation and operating on the most advanced banking technology platform in the market. Diamond Bank has over the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships.

We have retained excellent banking relationships with a number of well-known international banks, allowing us to provide a bouquet of world class banking services to suit the business needs of our clients. These international banking partners include Citibank; HSBC Bank; ANZ Banking Group; ING BHF Bank AG; Standard Chartered Bank; Belgolaise Bank S.A; Deutsche Bank; Commerzbank; and Nordea Bank Plc.

* Diamond Bank's A- rating by Fitch Ratings and A+ rating by GCR, reflects the bank's sustainable liquidity, sound and professional practices and good standing as a high investment grade institution.

More information can be found at www.diamondbankplc.com

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