- Diamond Bank Grows Q3 Profit by 71%
Diamond Bank Plc yesterday presented its third quarter ended September 30, 2017 financial result to the Nigerian Stock Exchange (NSE). The lender’s financials displayed moderate growth in key financial parameters despite the lull trailing economic activity after the country exited recession.
For the nine months business period, the bank’s gross earnings jumped by 11 per cent year-on-year to N168.4 billion while profit before tax surged by 71 per cent to N6.7 billion. Impairment charges shrunk by 16 per cent to N35.3 billion year-on-year, reflecting management’s prudent approach to loan underwriting.
Although operating costs rose by 16 per cent to N54.3 billion from N46.7 billion in the corresponding period last year; this increase, according to the bank, is due to the huge investment in technology acquisition in line with the management’s strategic set goal to continue to lead the digital revolution in driving the development and delivery of world-class financial products and services in the sub-sector.
During this business period, the Bank curtailed staff costs, which shrank by five per cent year-on-year. This was because of the migration of more transactions from branches and the banking hall to the digital mobile platforms, leading to 95 per cent increase in online banking and mobile transactions.
Commenting about the results, Chief Executive Officer, Uzoma Dozie, stated that the bank’s modest growth in the last three business quarters under review despite the lull in economic activity and hazy operating environment, was the result of management’s focus on key strategic projections across the three core segments of retail, business and corporate banking.
He added that the Bank has a lot to do as the management will continue to passionately pursue its technology-driven retail strategy to optimise cost, boost financial performance in the medium to long term and strengthen support for MSMEs.
“We are happy with the progress we have made against our technology-led retail strategy and in areas of our financial performance, but there is more to do in the remaining quarter and beyond.
Specifically, we are committed to further developing our technology and operational infrastructure that allows us to scale rapidly, efficiently and cost effectively across Nigeria”, Uzoma said.
Economists and keen industry observers are of the view that as the economy waddles on the path to full recovery and strong economic activity after the exit from recession, Diamond Bank’s resolve to strengthen its partnerships with domestic and international bodies.