Diamond Bank Plc Audited Financial Results for the year ended 31st



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Diamond Bank Plc

Audited Financial Results for the year ended 31st December 2015

DIAMOND BANK PLC REPORTS FULL YEAR PROFIT BEFORE TAX OF N7 BILLION
Full Year highlights

  • Profit Before Tax of N7.1 billion from operations in 2015.

  • Interest and similar income of N157.9 billion, down only 2% in challenging environment.

  • Impairment charge of N55.2 billion reflecting prudent provisioning.

  • Operating costs and interest expense down 0.5% and 6% respectively in 2015 compared to 2014.

  • Mitigating actions taken to address impact of economic headwinds to deliver improved earnings and lower operating costs from 2016 onward.

  • Organizational restructuring underway in Q1 2016 to improve operations and services for clients.

  • Successful implementation of technology-led retail strategy to drive customer acquisition – landmark of 1 million customers acquired for Diamond Bank mobile app.

  • Increased focus on digital and IT infrastructure providing scale and efficiencies.


Strategic overview
2015 witnessed the successful roll out of Diamond Bank’s technology-led retail strategy which captures Nigeria’s favourable macroeconomic and demographic fundamentals, namely a large underbanked population who are increasingly digitally active. The strategy has led to the acquisition of 5,920,190 new retail customers in 2015.
The year was marked by a number of difficulties in the wider economy that have impacted on the banking sector, prompting the issuance of profit guidance announcement on March 11.
However, mitigating actions, including a focus on cost reduction, are being taken to address these challenges. As a result, Diamond Bank is better positioned for the future and expects to see improved earnings in 2016.
Commenting on the results, the Chief Executive Officer, Mr. Uzoma Dozie said:
2015 was undoubtedly a challenging year for us owing to a mixture of external factors not limited to regulatory headwinds and a difficult macroeconomic environment. Whilst this led to additional impairment charges following a prudent review, we have further tightened the criteria for loan originations in order to better align our loan portfolio with the macroeconomic conditions. As a result, we are confident that the overall quality of our loan book remains high.
Importantly, there are clear signs that the new strategy and initiatives to reduce costs are proving successful and are reflected in certain financial indicators. Fundamentally, by taking various mitigating actions and implementing the retail-led digital strategy, Diamond Bank has an excellent platform from which to achieve growth, profitability and shareholder returns in the years ahead. New retail accounts opened has grown more than fivefold and with a network of over 24,000 agents as at December 2015, active account ratio continues to improve. These, creates a measure of confidence going into the future”
Group Statement of Comprehensive Income

 

31 Dec. 2015

N'000

31 Dec. 2014

N'000

YoY

Change

Interest and similar income

157,860,427

161,129,626

(2.0%)

Interest expense

(48,454,172)

(51,553,435)

6.0%

Net interest income

109,406,255

109,576,191

(0.2%)

Net fee and comm. and other income

50,404,140

44,178,105

14.1%

Impairment Charge

(55,172,108)

(26,371,106)

(109.2%)

Net operating income

104,638,287

127,383,190

(17.9%)

Employee benefit expenses

(31,905,402)

(33,340,434)

4.3%

Operating expenses

(65,641,155)

(65,941,524)

0.5%













Profit/(loss) before tax

7,092,730

28,101,232

(74.8%)

Income tax

(1,436,108)

(2,616,013)

45.1%

Profit/(loss) after Tax

5,656,623

25,485,219

(77.8%)

Other comprehensive income (net)

2,244,104

(217,802)

1130.3%

Total comprehensive income

7,900,727

25,267,417

(68.7%)


Group Statement of Financial Position

 

31 Dec. 2015

N'000

31 Dec. 2014

N'000

YoY

Change

Cash and bal. with central banks

361,166,936

301,393,080

19.8%

Financial assets held for trading

13,116,843

3,481,299

276.8%

Derivative assets

161,622

50,012

223.2%

Assets pledged as collateral

172,100,785

103,397,647

66.4%

Loans to banks

60,103,340

296,098,561

(79.7%)

Loans and advances to customers

763,634,827

791,094,667

(3.5%)

Investment securities

267,337,206

342,834,637

(22.0%)

Investment in associates

-

2,918,000

(100.0%)

Assets held for sale

4,409,085

4,333,658

1.7%

Fixed and intangible assets

67,518,381

58,600,696

15.2%

Deferred tax

4,984,544

4,987,386

(0.1%)

Other assets

38,698,711

23,933,731

61.7%

Total assets

1,753,232,280

1,933,123,374

(9.3%)

Deposits from Banks

115,819,590

68,760,427

68.4%

Deposits from Customers

1,233,591,063

1,493,081,203

(17.4%

Current income tax liability

1,697,816

2,448,756

(30.7%)

Other liabilities

46,217,258

53,312,429

(13.3%)

Borrowings

102,719,571

74,637,231

37.6%

Long term debt

38,577,527

31,858,561

21.1%

Equity

214,609,455

209,024,767

2.7%

Total equity and liabilities

1,753,232,280

1,933,123,374

(9.3%)


Key Ratios & Per Share Data


• Capital Adequacy Ratio of 16.3% (17.5% Dec 2014)

• Loan to deposit ratio at 66.5% (55.6% Dec 2014)

• Liquidity ratio (Bank) 53.8% (41.7% Dec 2014)

• Cost of risk 6.7% (3.4% Dec 2014)

• Coverage Ratio of 100.4% (93.3% Dec 2014)

• Net Interest Margin of 6.1% (6.6% Dec 2014)

• Cost to income ratio of 61.0% (64.6% Dec 2014)

• NPL ratio of 6.9% (5.1 % Dec 2014)

• ROAE of 2.7% (14.7% Dec 2014)

• EPS of 24(k) (166k Dec. 2014)




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 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 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.

 

More information can be found at www.diamondbank.com




Investor Relations Contacts

Chiugo Ndubisi Cndubisi@diamondbank.com

Ag. Chief Financial Officer +234 (1) 448 9832


Ifeatu Onwuasoanya IOnwuasoanya@diamondbank.com

Head, Investor Relations +234 (1) 448 9866









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