DIAMOND Bank Plc in its 2017 third-quarter financial result has recorded remarkable increase in profit, as profit before tax surged by 71 percent to N6.7 billion.
For the nine months business period, the Bank’s gross earnings jumped by 11 percent year-on-year to N168.4 billion while profit before tax surged by 71 percent to N6.7 billion from N3.89 billion recorded in the third quarter of 2016.
Impairment charges shrunk by 16 percent to N35.3 billion year-on-year, reflecting management’s prudent approach to loan underwriting.
Although operating costs rose by 16 percent to N54.3 billion from N46.7 billion in the corresponding period last year; this increase, according to the Bank, was 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 the period under review, the Bank curtailed staff costs, which decreased by five percent year-on-year. This, according to the bank was because of the migration of more transactions from branches and the banking hall to the digital mobile platforms, leading to 95 percent increase in online banking and mobile transactions.
Commenting on 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.
The Bank’s capital adequacy and liquidity ratios remained stable at 15.8 percent and 32.7 percent, which is far above the regulatory requirements of 15 percent and 30 percent respectively.
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