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 Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has reaffirmed that the old and new Naira notes will continue to be used for financial transactions in the country beyond December 31, 2024.
There had been rumours that the old and redesigned N200, N500, and N1,000 banknotes would no longer be legal tender from Wednesday, January 1, 2025, because the central bank would phase out the notes in compliance with a Supreme Court judgement of November 29, 2023.
But the apex bank, in a statement signed by its acting Director of Corporate Communications, Mrs Hakama Ali, on Friday, clarified that the apex court’s judgement being cited did not authorise the bank to phase out the banknotes by the end of this year.
According to her, the court allowed the CBN to leave the old and new notes to be used concurrently until it decides to gradually phase out the former.
The central bank’s spokesperson urged members of the public to disregard claims suggesting the old series of these denominations would cease to be valid at the end of this year.
She urged them to continue to accept all Naira notes for daily transactions, encouraging banks to also adopt alternative payment methods such as electronic channels to reduce the pressure on physical cash usage.
“The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old N1000, N500, and N200 banknotes currently in circulation.
“In line with the bank’s previous clarifications and to offer further assurance, the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the N1000, N500, and N200 denominations of the Naira indefinitely.
“For the avoidance of doubt, all versions of the naira, including the old and new designs of N1000, N500, and N200 denominations, as well as the commemorative and previous designs of the N100 denomination, remain valid and continue to be legal tender without any deadlines,” the statement noted.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking6 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN