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Diamond Bank Stuns Shareholders with Worst Quarterly Result Since 2012

Diamond Bank Plc released its 2015 half year results showing earnings per share dropped year on year by 45% to N0.52 (2015 H1: N0.95) The Bank in its second quarter result posted Net Interest Income of N29.7billion 3.2% higher than the N28.8 billion it posted in the first quarter of the year. However, the bank […]

Research Team

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Diamond Bank Stuns Shareholders with Worst Quarterly Result Since 2012
  • Diamond Bank Plc released its 2015 half year results showing earnings per share dropped year on year by 45% to N0.52 (2015 H1: N0.95)
  • The Bank in its second quarter result posted Net Interest Income of N29.7billion 3.2% higher than the N28.8 billion it posted in the first quarter of the year.
  • However, the bank saw income from commissions and fees rise 14% to N9.5billion.
  • Things however went south for the bank after it posted an operating expense of N27 billion (N24.1billion).
  • Diamond Bank also continued to take in impairment charges recording another N6.5billion this quarter alone. Most of its provisions have come from bad overdraft loans
  • The Bank has now provided for a cumulative loan loss of N65billion since Q1 2013.
  • We also noted that the bank’s deposits dropped significantly by 9% to N1.4trillion
  • Also of note was the fact that the bank lent about 18.7% of its Loans and Advances to other banks.
  • See press release
Diamond Bank      
2015 Q1 Q2 %age Change
  N’m N’m  
Income Statement      
       
Gross Earnings     #DIV/0!
Interest Income        40,487          42,677 5.41%
Interest Expense      (11,642)        (12,902) 10.83%
Net Interest Income        28,846          29,775 3.22%
Exchange Commissions and Fees          8,362            9,578 14.54%
Investment & Other Income          1,822                  83 -95.45%
       
Total Operating Income        39,029          39,436 1.04%
Operating Expenses      (24,195)        (27,030) 11.72%
Operating Profit        14,835          12,406 -16.37%
Loan Impairment        (6,468)          (6,580) 1.75%
Share of Profit/(Loss) of associate                  –                      –    
Profit from discontinued operations                      –    
Profit before Tax          8,367            5,826 -30.37%
Taxation        (1,200)              (839) -30.07%
Profit after tax          7,168            4,987 -30.42%
Tax as a %age of PBT 14.34% 14.40%  
Indices      
EPS (Kobo)                      
Oustanding Shares   23,160.39     23,160.39  
Interest Margin 71.2% 69.8% 2.12%
Operating profit as a percentage of Operating Income 38.0% 31.5% 20.82%
Cost to Income Ratio 62.0% 68.5% -9.56%
Loan Impairment to Operating Profit 43.6% 53.0% -17.80%

 

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Comments 2

  1. Ogus

    I’m wondering why EPS increased on the table ! Likely error.
    I’m expecting further bearish sentiment to weigh on Diamond ! They are missing their former MD.

    Reply
    1. Nairametrics

      It is an error. Corrected

      Reply

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