Diamond Bank Plc, provider of comprehensive banking and other financial services to corporate and individual customers across Nigeria has announced its Group audited results for the twelve months ended 31 December 2010.
The audited result demonstrates continued growth in operating profit which recorded an annualized growth of 12% to N27.6 billion (N24.6 billion Dec 2009), while the operating income was up by an annualized rate of 8% to N74.2 billion (N68.8 billion Dec 2009). This growth is attributed to the Bank’s continued buoyancy in low-cost deposits and cost efficiency gains, emanating from its process reengineering initiatives implemented over the last 2 years.
According to a statement released by the Bank, the group made a provision of N22.9billion and a profit before tax of N4.8 billion which is a leap from loss of N12.4 billion in the previous 8-months financial year. The Group recorded a tax after profit of N1.3 billion from a loss of N8.2billion in the 8-months ended December 2009, while its liquidity ratio stood at 41.5%, (16.5% above the minimum regulatory ratio of 25%).
Speaking on the result, Dr. Alex Otti, Group Managing Director/CEO of Diamond Bank commented thus: “These improving results and our return to profitability are as a result of our employee’s hard work over the past few years. As the incoming Managing Director of the Group, I am in the exciting position of leading a Bank that has taken tough actions to strengthen its platform and now has the opportunity to become one of Nigeria’s top performing banks by 2012.”
“I have identified a number of key strategic initiatives that need to be addressed in order for us to reach our goal and I look forward to working with the Group to deliver top quartile returns for our shareholders, consistent service excellence and making our Company an employer of choice in all areas of expertise.”
The statement further hinted that Diamond Bank is positioned to deliver better performance given the high efficiency of its balance sheet. The Bank said that 2010 was characterized by sustained growth across its retail unit, with monthly fee income up 50% to an average of N320 million in 2010, from a customer base that grew from 1.3 million to 1.7 million. Retail deposits which include the Bank’s MSME and personal customers grew by 60% to N176 billion by year end and its retail liabilities now represent about 50% of the Bank’s total liabilities. Meanwhile, its retail asset base was N28 billion in 2010, up from N10 billion at the start of the year.
The above performance has helped the Group achieve the best of class net interest margin of almost 10%, and an improved cost to income ratio of 62.8% in 2010, from 70.9% in 2009. Although we saw improvement in cost of risk from 10.4% in 2009 to 6.4% in 2010, provisions remained high. It is expected that an increased focus on recovery will deliver lower figures in 2011.
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. The Bank has retained excellent banking relationships with a number of well-known international banks, allowing it to provide a bouquet of world class banking services to suit the business needs of our clients.