Banking

Diamond Bank Shareholder Loses N21b

Published

7 years ago

27/11/2018

By Dipo Olowookere

There are strong indications that one of the major shareholders in Diamond Bank Plc, a financial institution on the Nigerian Stock Exchange (NSE), may eventually lose up to N20.6 billion or $67.2 million of its investment in the local lender.

Diamond Bank has been struggling lately and there are fears that it could go the way of defunct Skye Bank Plc, which had its operating licence revoked by the Central Bank of Nigeria (CBN) in September 2018 for low capital base.

Four years ago, an American firm believed to be the world’s largest private equity group, Carlyle Group, invested heavily in Diamond Bank.

At the time, Diamond Bank organized an operation to raise N50 billion (about $303 million at the exchange rate of N165 for $1 at that time), with Carlyle then acquiring about 4.16 billion shares at N5.80k each (at about N24.1 billion or $146.2 million), becoming the leading individual shareholder in the bank with 17.7 percent of the shares.

But today, with exchange rate at about N306 at the interbank segment of the foreign exchange market, Diamond Bank is only worth 86 kobo per share.

Business Post reports that Carlyle Group has already lost N4.94k per share of its investment in Diamond Bank, resulting in a total of N20.6 billion or $67.2 million.

At the present market value, Carlyle’s participation in Diamond Bank is worth about $11.7 million because the share’s prices never exceeded purchase price and yield per share has been negative.

Instead of the awaited expansion, Diamond Bank sold some of its operations in the West African region, Nigeria excluded, and, its profit kept falling. From N1.43 net profit per share in 2014, it fell to N0.36 due notably to a significant drop in trading revenues and there are fears already that the 2018 financial year could follow the same trend.

Indeed, even though trading revenues are important once again, they are negatively affected by a fall in the net interest margin at the end of the first nine months of 2018.

“Carlyle is very pleased to join the Diamond Bank Group as an investor. Diamond Bank is one of the most recognised retail banks in Nigeria, with a strong corporate culture, best-in-class management team, advanced technology, large retail franchise, and innovative product and service offerings,” Managing Director and Head of West Africa for the Carlyle Sub-Saharan Africa Fund which was the investment vehicle at the time, Geneviève Sangudi, had said four years ago when the firm keyed into the Diamond Bank dream.

But according to Ecofin Agency, things never went as planned for Carlyle Group because of the fall in oil prices and Diamond Bank was already suffering from an important volume of bad debts, which continued to lose value.

A solution: quickly find foreign investors to support the group

In such conditions, Diamond Bank cannot rely on its shareholders and is thus obliged to quickly find a solution to settle an important part of its international bonds that will mature in May 2019 and this is a great challenge since its liquid assets in foreign currency represents 25 percent of the $200 million Eurobond to be settled.

Recently, Moody’s downgraded Diamond Bank’s issuer rating from caa1 to caa3 due to two main reasons; first, there is a great volume of bad debts that the bank is not really able to solve yet; from 42 percent in December 2017, it lost two percent points at the end of the third quarter of 2018 to reach 40 percent.

Secondly, important members of its board resigned, signalling internal management problems. Moody’s thinks that this could impact the effort required to solve the bank’s bad debt problems (of which only 20 percent are sufficiently covered).

On November 23, 2018, Diamond Bank’s share gained 7.6 percent points after a week of value loss. It started the week of November 26, 2018, with a loss of 1.26 percent in value.

At the moment, Diamond Bank has a total of 23.1 million shares outstanding and an EPS of -70 kobo.

Banking

Proxy Share Acquisition: Nothing to Worry About—LivingTrust Mortgage Bank Assures Shareholders

Published

12 hours ago

07/04/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The board of LivingTrust Mortgage Bank Plc has assured the investing public, particularly its shareholders, that its operations are not being affected by reports of an alleged proxy share acquisition surrounding the organisation.

It was claimed that an investor attempted to take over the control of the real estate lender with funds alleged to have been from questionable sources.

In a clarification to the investing public through the Nigerian Exchange (NGX) Limited on Tuesday, April 7, 2026, the company said it cannot confirm if security operatives investigating the claims have submitted their report to the Central Bank of Nigeria (CBN).

However, it assured that, “Our bank is stable and that in the event of any change in ownership, we will file the necessary formal notifications and publish detailed announcements.”

In the notice today, LivingTrust Mortgage Bank narrated that, “As a company listed on the Growth Board of NGX, there are regular movements on the bank’s shareholder register.

“The bank’s monitoring of material movements showed an acquisition of 2.24 per cent of its shareholding by Apel Asset Ltd-Nominee, as per its register of June 25, 2025, as obtained from our registrar. However, one month later, in July 2025, the register obtained from the bank’s registrar showed the same shares to be listed in favour of Deril Academy Limited. We are further aware that in July 2025, Deril Academy Limited teamed up with some other shareholders in a takeover attempt via a matter filed in the Federal High Court, Lagos. The attempt failed, and the matter has now been withdrawn.

“Please note that we do not reveal the veil of corporations of juridical entities investing in the shares of the bank, below the level considered statutorily significant.

“While the CBN assesses the source of funds invested in financial institutions, persons purchasing shares of less than 5 per cent of total shareholdings in the open market are not required to be reported to the CBN.”

Business Post reports that the majority shareholders of LivingTrust Mortgage Bank, formerly Omoluabi Mortgage Bank, are Cititrust Holdings Plc and the Osun State Government.

Banking

Regulatory Push Drives BVN Enrollment to 68.6 million in Q1 2026

Published

20 hours ago

07/04/2026

Adedapo Adesanya

By Adedapo Adesanya

Nigeria’s Bank Verification Number (BVN) registry surged to 68.6 million in the first three months of 2026 from 67.8 million in the last quarter of 2025, reflecting continued uptake of the unique identity platform for bank customers amid new regulatory directives to strengthen the Nigerian financial landscape further.

Data released by the Nigeria Inter-Bank Settlement System (NIBSS) showed that the database expanded by 754,128 in the first quarter of the year.

Last year, the sector recorded 4.3 million new registrations, largely driven by the Non-Resident Bank Verification Number (NRBVN) initiative, which allows Nigerians in the diaspora to register remotely, thereby boosting cross-border financial inclusion.

The data for fresh enrolments in 2026 showed a slowing rate of registrations, with fewer than one million recorded in the first three months. The total number of active bank accounts in Nigeria stood at over 320 million as of March 2025, highlighting a gap between BVN coverage and the broader banking population. While a single BVN can be linked to multiple accounts, unlinked accounts remain a challenge for financial oversight.

Last month, the Central Bank of Nigeria (CBN) introduced a revised BVN regulatory framework to strengthen identity verification and fraud prevention. Among the new provisions, only individuals aged 18 and above are eligible for BVN enrolment, and customers are now permitted to update the phone number linked to their BVN only once.

The apex bank also directed financial institutions to maintain a temporary watch list of BVNs associated with suspected fraudulent transactions. Affected BVNs remain on the list for up to 24 hours, during which owners are contacted for clarification before further action is taken.

According to the CBN, the measures are designed to tighten fraud monitoring, protect transaction integrity, and enhance identity management across Nigeria’s banking system.

Banking

Wema Bank Creates Buzz With ALAT: The Evolution Jingle

Published

20 hours ago

07/04/2026

Modupe Gbadeyanka

By Modupe Gbadeyanka

One tune that is on the lips of young and energetic Nigerians is the new ALAT: The Evolution jingle.

The melodious clink was designed to capture the energy of a smarter and more seamless banking experience. It is bright, catchy, and full of life.

The lender said the ALAT: The Evolution jingle is more than just music, as it represents a clear statement of intent. It signals a shift towards banking that feels natural, responsive, and in tune with the user.

As customers update their app and explore ALAT: The Evolution, the jingle serves as a reminder that a better, smoother way to bank is already here. Wema Bank is not just evolving its technology; it is shaping how banking feels.

It was stated that the tune was introduced to mark the next phase of the financial institution’s digital banking journey.

Everyday banking can often feel routine or even stressful, with multiple steps and delays slowing things down. The ALAT: The Evolution jingle reimagines that experience with a lively and confident tone that mirrors the app’s capabilities.

From voice banking with SAW to Tap and Pay and bank uptime prediction, each feature is echoed in the rhythm and flow of the sound. It brings to life the speed, convenience, and reliability that define this new phase of ALAT: The Evolution.