Banking
Diamond Bank’s Recent Performances Worry Shareholders, Investors
By Modupe Gbadeyanka
Shareholders and investors at Nigerian stock market are really not happy with the results recently churned out Diamond Bank Plc.
Some of those who spoke with Business Post said they are disappointed with the performance of the mid-level financial institution lately.
For example, Diamond Bank, in its financial statements for the period ended December 31, 2017, 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, the firm recorded a loss after tax of N9 billion during the period under review against the profit after tax of N3.5 billion in 2016.
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.
On Monday, July 30, 2018, the bank released its financial scorecard for the first six months of this year and the performance was not too different from the previous ones, leaving shareholders to worry about the health status of the bank.
For example, in H1 2018, the lender’s profit after tax went down by N6.2 billion or 77.6 percent to N1.8 billion from N8 billion, while the profit before tax declined by 69.3 percent from N9.5 billion to N2.9 billion.
Also, its interest and similar went down to N75 billion from N76.5 billion, while the interest and similar expenses shot up to N28.5 billion from N22.5 billion.
In the period under review, the net interest income dropped by 14 percent to N46.5 billion from N54.1 billion, while the impairment charge for credit losses closed at N18.4 billion as at June 30, 2018 against N18.9 billion as at June 30, 2017.
Also, the net interest income after impairment charge for credit losses stood at N28.1 billion versus N35.1 billion, with the fee and commission income at N19.2 billion in contrast to N19.2 billion.
Under the operating expenses, the lender posted N11.6 billion against N12.5 billion, representing 6.9 percent reduction, while the depreciation and amortization stood at N4.1 billion versus N4 billion, while the operating lease expenses closed at N507.9 million compared with N484.7 million, with the total expenses rising by 1.7 percent to N44.3 billion from N43.5 billion.
A look at the balance sheet by Business Post showed that the total assets dropped by 23.2 percent to N1.6 trillion from N2.1 trillion, while the total liabilities reduced to N1.4 trillion from N1.8 trillion with the shareholders’ fund shedding 7 percent to N221.5 billion from N238.2 billion.
The earnings per share (EPS) depreciated by 77.6 percent in the period under review to 8 kobo from 35 kobo, while the return on assets closed at 0.11 percent from 0.39 percent with the return on equity ending at 0.81 percent from 3.37 percent
However, the gross earnings grew by 0.62 percent to N98.5 billion in H1 2018 from N97.9 billion in H1 2017.
“Diamond Bank’s results lately are not encouraging. We don’t know what is wrong with the bank,” an investor in the nation’s bourse told Business Post on Tuesday.
But the Chief Executive Officer of Diamond Bank, Mr Uzoma Dozie, assured that all was well with the financial institution.
While commenting on the H1 2018 results of the company, Mr Dozie said, “At a macro level the Nigerian economy continued to record improvements because of stable, higher than anticipated oil prices.
“We have witnessed 15 months of expansion reflected in monthly PMI data, but investor sentiment has remained mixed caused in part by the election season factor.
“We have capitalised on the positive macro environment to sustain interest income in the short run with positive prospects for growth and have made progress in growing non-interest income.
“Importantly, we have continued to build awareness of Diamond Bank in the wider financial ecosystem to develop new frontiers in retail banking.
“Amongst this activity were the Beauty Souk and TechFest events, targeted at entrepreneurs and emerging businesses in the fashion and technology sectors respectively.
“Our partnership with Lagos Business School’s Enterprise Development Center to support young entrepreneurs continued with the seventh season of the Building Entrepreneurs Today program.
“In addition to retail banking, we are investing more resources in our mid-market business banking services to seize the opportunities emerging in that segment. In the second half of 2018, these investments will lead to improved profitability overall.
“Despite a tough six months being reported, the outlook for 2018 remains bright for the bank as we continue to focus on a return to strong profitability and improvement in other KPIs.”
Business Post reports that Diamond Bank shares lost 14 kobo or 10 percent on Tuesday to settle at N1.26k per share.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, says Nigeria anticipates remittances from citizens living abroad to increase by two-thirds in 2026 as it seeks to bolster its foreign-exchange reserves to $1 billion monthly.
“We are expecting that by the end of the year, we will hit about a billion Dollars a month from diaspora remittances,” he said at the 14th Annual BusinessDay CEO Forum in Lagos on Thursday, themed From Stability to Shared Prosperity.
Mr Cardoso said remittances are expected to be boosted from more than $600 million currently, banking on the CBN’s deliberate target at remittances to diversify reserve sources beyond oil earnings.
According to him, the apex bank engaged Nigerians abroad, banks and international partners to identify barriers to official remittance flows.
He said the lender subsequently reviewed policies to ensure easier movement of funds into and out of the country.
Mr Cardoso described the approach as providing free entry and free exit for foreign exchange.
He said the reforms helped double diaspora inflows within one year and exceeded initial expectations, also projecting annual remittances could reach about $8 billion if the current momentum was sustained, adding that the development reflected growing confidence in Nigeria’s financial system and foreign exchange market.
Mr Cardoso said reforms introduced by the apex bank had restored stability in the foreign exchange market and improved investors’ confidence.
He identified exchange rate unification as one of the central bank’s major achievements under the reforms programme.
According to him, replacing multiple exchange rate windows with a market-driven system eliminated distortions and improved transparency.
Mr Cardoso said improved foreign exchange liquidity and stronger reserves were among the gains from the reforms.
He said Nigeria’s net external reserves had risen from about $3 billion at the start of the reforms to above $40 billion currently, noting that gross external reserves had grown to about $52 billion, representing about 10 months of import cover.
According to him, the reserves are designed to shield the economy from external shocks and excessive market volatility.
He said the reserves were not meant for routine interventions or day-to-day exchange rate management.
By Modupe Gbadeyanka
The flagship banking subsidiary of Guaranty Trust Holding Company (GTCO) Plc, Guaranty Trust Bank (GTBank) Limited, has been announced as the winner of Nigeria’s Best Digital Bank award at the Euromoney Awards for Excellence 2026.
The lender clinched this accolade at the Euromoney Awards for Excellence 2026 ceremony, held on July 17, 2026, at The Peninsula London, England, for its outstanding performance, innovation, customer service, and leadership.
GTBank’s recognition as Nigeria’s Best Digital Bank reflects its continued leadership in digital innovation and its commitment to delivering seamless, secure, and customer-centric financial solutions.
As the banking franchise of GTCO, GTBank has consistently set industry benchmarks in digital transformation, pioneering solutions that have redefined how individuals and businesses access, manage, and experience financial services.
Over the years, GTBank has transformed the banking experience through a suite of innovative digital platforms, including the GTWORLD mobile app and solutions that provide millions of customers with seamless, secure, and convenient access to financial services.
The bank continues to strengthen its digital capabilities by introducing products and services that meet evolving customer needs while maintaining the highest standards of security, reliability, and service excellence.
This latest recognition underscores the company’s position as a market leader and reflects its sustained investment in technology, operational excellence, and innovation.
“This recognition is a testament to the legacy upon which GTBank was built and the vision that continues to guide us today.
“From inception, our goal has been to deliver on the Group’s vision to make end-to-end financial services accessible to everyone by leveraging technology to remove barriers, simplify experiences, and create meaningful value for our customers,” the chief executive of GTBank, Mrs Miriam Olusanya, stated.
“While we are honoured by this recognition, we see it as an acknowledgement of what we have achieved and a motivation to do even more.
“We remain focused on raising the bar for digital banking, investing in innovative solutions, and delivering exceptional experiences that create lasting value for our customers.
“As the financial services landscape continues to evolve, we will continue to innovate, adapt, and lead with the same commitment to excellence that has defined our franchise for decades,” she added.
The Euromoney Awards for Excellence 2026 convened leading financial institutions, industry executives, and policymakers from across the globe to celebrate excellence, innovation, and leadership in the financial services sector.
By Aduragbemi Omiyale
A collaboration to enable fast money transfers into Nigeria has been entered into between Flutterwave and Xoom, PayPal’s international digital money transfer service.
The partnership allows Xoom transfers to be converted by Flutterwave and settled locally in Naira, enabling quick transfers directly into recipients’ bank accounts at Access Bank, UBA, Zenith Bank, First Bank, GTBank, and additional participating banks across Nigeria.
The deal also enables Xoom’s global network with Flutterwave’s local payout infrastructure, allowing users globally to send funds directly into Nigerian bank accounts with improved speed and efficiency.
Nigeria is the leading remittance recipient in Sub-Saharan Africa, receiving over $20 billion in personal remittances in 2024. Despite this volume, receiving international payments has historically remained complex due to FX constraints and settlement delays. This collaboration helps address those challenges in a market of more than 232 million people, where the ICT sector is projected to contribute 21 per cent of GDP by 2027.
By combining Xoom’s expansive reach with Flutterwave’s local compliance and banking partnerships, the two companies are providing a more accessible financial corridor for the continent.
Xoom, a PayPal service, is a fast and secure international digital money transfer service that enables consumers to send money, pay bills, and reload phones for friends and family in approximately 160 markets globally.
As part of PayPal’s global payments ecosystem, Xoom leverages advanced fraud protection, compliance capabilities, and a trusted global network to help millions of customers move money quickly and securely across borders.
“We’re excited to have been chosen by Xoom for their Nigeria expansion. Millions of Nigerians rely on money from abroad to support everyday needs, whether it’s families receiving help from loved ones, freelancers getting paid for their work, or individuals earning income from the global economy. This helps make it easy and more reliable for people in Nigeria to receive funds and stay connected to opportunities beyond borders,” the chief executive of Flutterwave, Mr Olugbenga GB Agboola, stated.
