Banking
Investors Dump Diamond Bank Shares amid Fears over Company’s Future
By Modupe Gbadeyanka
In order not to be caught unawares, some investors having shares of Diamond Bank Plc in their portfolio are beginning to offload them as a result of uncertainty over the financial institution’s future.
In recent times, Diamond Bank has not been churning out good results, a development Business Post gathered has given some shareholders of the mid-tier lender sleepless nights.
For example, the 2017 full year financial statements of Diamond Bank was nothing to write home about and just when some observers and investors thought things would get better in the first quarter of 2018, their expectations were cut short as the firm further failed to impress.
In its second quarter 2018 results, things did not get any better and so also in the third quarter.
In late September 2018, the Central Bank of Nigeria (CBN) revoked the operating licence of Skye Bank Plc, making shareholders of the lender lose their hard-earned money. This development triggered panic in the banking sector, especially among those in the same tier with Skye Bank, which the bank in focus is among.
Making matter worse for Diamond Bank was the downgrading of firm’s long and short-term issuer credit ratings by S&P as well as the recent reports of a possible acquisition of the company by a tier-1 bank, Access Bank Plc, though both have since denied this.
But what seemed to be more confusing was the resignation of Chairman of the bank, Mr Oluseyi Bickersteth, and three other directors last month, which reports said was to allow the rumoured new investors have their own representatives on the board of the firm.
Even Mr Bickersteth was quoted as saying in an interview that the board considered selling Diamond Bank to another bank, which the present management has described as untrue.
However, in order not to fall into a similar situation with Skye Bank, shareholders of Diamond Bank are already selling off their holdings, Business Post has learnt.
According to data from the Nigerian Stock Exchange (NSE), trading in Diamond Bank Plc, Ikeja Hotel Plc, and FBN Holdings Plc, (measured by volume) accounted for 708 million shares worth N1.8 billion in 1,957 deals, contributing 55.11 percent and 15.23 percent to the total equity turnover volume and value respectively last week.
Also, Diamond Bank, which opened last week at N1.28k per share, closed last Friday at 90 Kobo per share, indicating as 29.69 percent loss in one trading week.
But despite the troubles, the CEO of Diamond Bank, Mr Uzoma Dozie, has expressed optimism that all will be well.
According to him, the conclusion of the sale of Diamond Bank’s subsidiary in the United Kingdom this quarter and other strategies being put in place should propel the company back to profitability.
“As we move into the final quarter of the year, we expect headwinds to continue driven by emerging situations in developed economies as well as our domestic political realities.
“Despite this, our investors can expect a further decline in Non-Performing Loans (NPLs), a further increase in our digital footprint and completion of the sale of the UK subsidiary.
“Through these actions, we remain optimistic about the medium to long term outlook of Diamond Bank and its return to strong profitability,” Mr Dozie was quoted as saying in a statement issued last week by bank’s PR agency, Prize Communications Limited, which was obtained by Business Post.
Whether investors will take Mr Dozie for his words is one thing many cannot answer at the moment especially when some have blamed him for the bank’s recent misfortunes. In fact, some have even started to call for his removal as Diamond Bank MD/CEO.
By Aduragbemi Omiyale
In recognition of its unwavering commitment to fostering access to financing for Nigerian micro, small and medium enterprises (MSMEs), Development Bank of Nigeria Plc has been rewarded with the Financial Inclusion Leadership Award at the Champions of Inclusion Nigeria Financial Inclusion Awards.
This was at the 2024 International Financial Inclusion Conference (IFIC) organised by the Central Bank of Nigeria (CBN) in collaboration with the World Bank and other stakeholders.
The chief executive of the lender, Mr Tony Okpanachi, said the recognition affirms the company’s efforts in expanding access to financial services for MSMEs in Nigeria.
“We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our bank’s commitment to expanding access to financial services for all Nigerians. This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs.
“Additionally, this award is a validation of our strategic focus on driving financial inclusion for small businesses, and we are proud to be at the forefront of this initiative that drives that. We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services,” he stated.
On his part, the Chief Operating Officer of DBN, Mr Bonaventure Okhaimo, said the accolade demonstrates the firm’s dedication to driving financial inclusion and economic growth in Nigeria.
“This award acknowledges our Bank’s innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” he said.
“This award will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact.
“We are committed to ensuring that more small businesses and startup enterprises in Nigeria have access to financial services, this award will further inspire us to accelerate our efforts in this regard,” he stated.
By Modupe Gbadeyanka
The Banker Magazine of the Financial Times Group in the United Kingdom has announced Zenith Bank Plc as Bank of the Year, Nigeria.
At the Banker’s Bank of the Year Awards 2024 held on in London on Wednesday, December 4, 2024, it was stated that Nigerian lender clinched the award for its strong management, sound business model and strategy, and approach to sustainability and ESG banking practices.
The chief executive of Zenith Bank, Ms Adaora Umeoji, described the recognition as a “testament to the unwavering trust and loyalty of our esteemed customers, the unparalleled leadership and guidance of the board and management as well as the hard work and dedication of our staff.”
She said, “It also reflects our bank’s steadfast commitment to delivering excellent services to our customers and contributing to the growth and development of the Nigerian economy.”
“We will continue to invest in innovative technologies, expand our range of products and services, and maintain our commitment to exceptional customer service in order to sustain our position as Nigeria’s Number One Bank,” Ms Umeoji assured.
The Banker’s Bank of the Year accolade is among the most coveted and widely regarded award in the banking industry.
Often contested by the world’s leading financial institutions, the winners span across Africa, Asia-Pacific, Central & Eastern Europe, Latin America, the Middle East, North America and Western Europe.
Recall that last month, Zenith Bank commissioned its branch in Paris, France following the granting of the final approval by the country’s banking regulator, the Autorité de ContrôlePrudentiel et de Résolution (ACPR).
This is part of the bank’s global expansion strategy, and its commitment to serving clients wherever their businesses are around the world.
Zenith Bank has continued to earn numerous awards, with this latest accolade coming on the heels of several recognitions, including being the Number One Bank in Nigeria by Tier-1 Capital for the 15th consecutive year in the 2024 Top 1000 World Banks Ranking, published by The Banker Magazine.
By Modupe Gbadeyanka
The Central Bank of Nigeria (CBN) has published some phone numbers citizens can call to report any bank that fails to give them cash over-the-counter or at Automated Teller Machines (ATMs).
In a circular, the banking sector regulator said cash has been made available to lenders to disburse to their customers, saying they have no reason to do so.
DMBs are directed to ensure efficient cash disbursement to customers OTC and through ATMs as the CBN will intensify its oversight roles to enforce this directive and ensure compliance,” a part of a circular signed by acting Director of Currency Operations, Solaja Mohammed Olayemi; and the acting Director for Branch Operations, Isa-Olatinwo Aisha, stated.
It encouraged members of the public who are unable to obtain cash at their banks to “report these instances using the designated reporting channels and format provided,” saying it will “assist the CBN in addressing issues hindering the availability of cash and further improve currency circulation.”
They are to reach the central bank through designated phone numbers of the CBN branch in the state where the incident occurred or via email.
According to the circular, the complaints should be sent with “the relevant details which shall include account name/name of the DMB/amount/time and date of incidents, amongst others.”
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