Banking
Q1 2017: Diamond Bank Grows Assets Despite Fall in Profit
By Modupe Gbadeyanka
In the Q1 2017 financial accounts of Diamond Bank released to the Nigerian Stock Exchange (NSE) recently, the lender recorded strong growth in its asset base, customer base, quality service delivery, product development and deployment of cutting-edge technology to drive its operations.
However, its Profit Before Tax (PAT) mildly declined to N5.6 billion from N6.6 billion in the previous year, while Profit After Tax (PAT) depreciated to N4.8 billion from N5.8 billion.
But the bank remains optimistic that it is solidly committed to growing its corporate and mid-tier market segment in the business year and the years ahead, pointing out that it has outlined detailed strategies to help leverage the current business momentum in the economy.
Further analysis of the result showed that interest and similar income grew by 27 percent to N44.5 billion year-on-year, while the asset base leapfrogged to N2.07 trillion from N2.05 trillion, representing 1.2 percent with personal operating cost shrinking by 3 percent, reflecting management’s prudent resource use.
Commenting on the development, the Chief Executive Officer of Diamond Bank, Mr Uzoma Dozie, said despite the inclement operating environment that clouded the period under review, the gains of the last business year especially in customer acquisition, product development and the deepening of the bank’s retail strategy, helped in drilling a seamless business foothold and expansion in all market segments.
“Building upon positive momentum in 2016, Diamond Bank commenced 2017 focused on harnessing further benefits from its technology-led retail strategy.
“In particular, the bank continued to focus on cost containment, driving operational efficiencies, and the roll-out of technology and innovation to improve customer experiences and access to financial services.
“The bank’s strategy to expand reach and service through digital channels has helped customers connect to new markets,” Mr Dozie said.
He said further that, “Since the beginning of 2017, there have been positive developments in the wider economy which we believe will translate to greater productivity in the months ahead.
“For example, the inflation rate is beginning to recede and there appears to be more foreign exchange available to stimulate trade, though the quantum of unmet demand is still high. Against this economic background, our streams of income remain resilient.”
He stated that Diamond Bank’s focus on digital and mobile banking is gaining further traction, with the year on year increases in mobile revenue and app usage showing tangible results.
“It is clear that customers value the ease and convenience of our services across multiple platforms and that this is leading to greater volumes of activity and enhanced relationships.
“I am confident that by maintaining our focus on the technology-led retail strategy, we will continue to build upon this positive momentum”.
According to the CEO, the continued pursuit of a diversified customer base across all market segments through retail offerings has helped in the mobilization of low cost deposits accounting for over 80 per cent of total deposits, adding that the Bank’s philosophy of “mobile first” has continued to deliver expected results as revenue from mobile banking increased from N270 million in Q1 2016 to N1.2 billion in Q1 2017.
Also, the usage of Diamond Mobile Apps continued to surge as the value of quarterly transaction volume jumped to N2.6 billion from N1.1 billion in March 2016. The Bank’s retail customer count stood at over 13 million as at the end of March 2017, reflecting the strength of customer confidence and investor trust on the Bank.
“I am delighted that our focus on digital and mobile banking is gaining further traction, with the year on year increases in mobile revenue and app usage showing tangible results.
“It is clear that customers value the ease and convenience of our services across multiple platforms and that this is leading to greater volumes of activity and enhanced relationships.
“I am confident that by maintaining our focus on the technology-led retail strategy, we will continue to build upon this positive momentum,” he said.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
By Aduragbemi Omiyale
A partnership aimed to enable seamless, real-time and secure transactions for cardholders across Africa and the rest of the world has been entered into by Payattitude and PAPSSCARD, the card scheme initiative of the Pan-African Payment & Settlement System (PAPSS).
The collaboration will allow Payattitude cards issued by banks and other deposit-taking institutions to be co-branded with PAPSSCARD, Discover, Diners and Pulse for acceptance across their networks in Nigeria, Africa and worldwide.
As an initiative of the African Export-Import Bank (Afreximbank) and a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), the PAPSSCARD scheme will facilitate instant cross-border payments in local currencies.
“This partnership reflects our commitment to cross-enterprise alliances and enabling inclusive, efficient, and borderless payments across Africa and the world
“With Payattitude, Nigerian cardholders and financial institutions can now enjoy the benefits of a Nigerian card that can be used worldwide,” a director at Payattitude, Dr Agada Apochi, said.
The acting chief executive of PAPSSCARD, Mr John Bosco Sebabi, said the aim is “to connect African payment ecosystems, reduce the cost and inefficiencies of cross-border payments, and strengthen African sovereignty over payments infrastructure.
“Collaborating with Payattitude, a key innovator in Nigeria’s payment space, represents a significant step towards a more unified African payment landscape.”
The chief executive of PAPSS, Mr Mike Ogbalu, said, “By bringing together PAPSSCARD’s robust cross-border payment capabilities with Payattitude’s leadership in the Nigerian digital payments, we are taking tangible steps toward building a single African market where individuals and businesses can transact easily and securely, both within and beyond Africa.”
Payattitude is the first-in-kind Nigerian Payment Scheme to pioneer multibank App and USSD Code *569#.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn