Diamond Bank Post N11.55 Billion Loss Before Tax in 2017 after Delayed Filing

Uzoma Dozie, Chief Executive Officer Diamond Bank Plc

By InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s lender, Diamond Bank Plc on Friday reported a loss before tax (LBT) of N11.55 billion for the period ended December 31, 2017 compared to N3.37 billion posted a year earlier.

Similarly, the bank recorded a loss after tax (LAT) of N9.01 billion compared to N3.49 billion reported the same period of 2016.

However,gross earnings grew marginally 3.02 percent to N189.62 in the review period of 2017 from N184.04 billion posted the same period of 2016.

Also, interest income increased from N127.81 billion in 2016 end to N145.32 billion declared in the review period of 2017; indicting an increase of 13.7 percent, Diamond Bank said in a filing with the Nigerian Stock Exchange (NSE).

Part of an emailed statement from the Diamond Bank to InvestAdvocate said the bank recorded a decrease in profit before tax year-on-year because of higher operating expenses, although investments in technology are starting to drive operational efficiencies. Total asset increased by two percent (2%), which was mostly driven by marginal improvements recorded in customer deposits.

“Diamond Bank made good progress in executing its technology-led retail banking strategy in 2017.   We increased our market share and drove scale through a combination of technology and expansion of our services across additional platforms. For instance, we made additional inroads to the unbanked and underbanked populations with the support of our international partners. In addition, the rapid rollout of products and services for entrepreneurs, and small and medium business owners gained significant traction and is a trend that is set to continue.

The Bank’s Net fees and commission were down by 1.3 percent year-on-year although impairment charges also trended downwards 0.3 percent year-on-year to N56.8 billion following continued efforts to improve the quality of the loan book, particularly in the Oil and Gas mid-stream sector. Operating costs of the Bank rose by 6.2 percent due to foreign exchange rate impact following the devaluation of the naira during the year,” Uzoma Dozie, chief executive officer of the bank said while commenting on the results.

This is coming on the heels of delayed filing from the lender to the NSE citing the Unlikelihood that the review of accounts by the Central Bank of Nigeria (CBN) will be concluded in time for compliance with the NSE and other regulatory rules guiding release of annual audited financial statements.

Similarly, the bank posted an unimpressive report for the first quarter (Q1) period ended March 31, 2018 as it announced its pretax profit dropped 75.2 percent to N1.25 billion from N5.05 billion declared the same period of 2017.

Profit after tax (PAT) of the bank also declined 83.7 percent to N784.95 million from N4.80 billion posted in the Q1 of 2017.

Interest income in the review period depreciated from N38.64 billion to N38.13 billion recorded in the Q1 period of 2017; showing a drop of 1.3 percent.

Shares of Diamond Bank at the close of the week’s trading on the Nigerian bourse declined 9.95 percent to N1.90 from N2.11 traded the previous week; losing 0.21 kobo per share.

 

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