By Dipo Olowookere
The 2017 business year was not too good for tier-two lender, Diamond Bank Plc, going by the financial statements of the firm finally released on Friday after much anticipation and apprehension by investing public.
In the results released to the Nigerian Stock Exchange (NSE) today, the company declared a loss before tax of N11.6 billion compared with the profit before tax of N3.4 billion it achieved two years ago.
Also, Diamond Bank said it had loss after tax of N9 billion during the period under review against the profit after tax of N3.5 billion in 2016.
Business Post reports that these losses occurred amid the 3 percent growth recorded in the gross earnings of the lender.
As at December 31, 2017, Diamond Bank’s gross earnings stood at N189.6 billion in contrast to N184.1 billion as at December 31, 2016.
A critical look at the financial statements by Business Post showed that during the period under review, the company earned N145.3 billion as interest income compared with N127.8 billion in 2016, while the interest expense jumped to N47 billion from N31.3 billion, leaving the net interest income at N98.3 billion versus N96.5 billion in 2016.
Also, the bank recorded a net impairment loss on financial assets of N56.8 billion last year against N57 billion two years ago, while the net interest income after impairment loss on financial assets closed at N41.5 billion in contrast to N39.5 billion a year earlier.
During the period under review, fee and commission income dropped to N37.1 billion from N41.4 billion in 2016, while it slightly pruned down its fee and commission expense to N8.5 billion last year from N8.8 billion two years ago.
This left the net fee and commission income closing at N28.6 billion in 2017 against N32.6 billion in 2016.
Also, the net operating income went down to N77.3 billion last year from N86.9 billion a year earlier with the total expenses during the year under review at N88.9 billion against N83.6 billion in 2016.
For its balance sheet, the total assets of Diamond Bank as at December 2017 stood at N1.7 trillion against N2.1 trillion in 2016, while the total liabilities reduced to N1.5 trillion from N1.8 trillion.
With these figures, Business Post anticipates the market to punish Diamond Bank Plc at the trading floor of the stock exchange next Monday when the market resumes.
Diamond Bank shares traded at N1.90k at the stock market on Friday, losing 10 kobo or 5 percent at the close of business.
View the full financial statements of Diamond Bank for the 2017 FY below.
