Download Diamond Bank Plc Audited Financial Results for the year ended 31st

Diamond Bank Plc
Audited Financial Results for the year ended 31st December 2015
DIAMOND BANK PLC REPORTS FULL YEAR PROFIT BEFORE TAX OF N7 BILLION
Full Year highlights
 Profit Before Tax of N7.1 billion from operations in 2015.
 Interest and similar income of N157.9 billion, down only 2% in challenging environment.
 Impairment charge of N55.2 billion reflecting prudent provisioning.
 Operating costs and interest expense down 0.5% and 6% respectively in 2015 compared to
2014.
 Mitigating actions taken to address impact of economic headwinds to deliver improved
earnings and lower operating costs from 2016 onward.
 Organizational restructuring underway in Q1 2016 to improve operations and services for
clients.
 Successful implementation of technology-led retail strategy to drive customer acquisition
– landmark of 1 million customers acquired for Diamond Bank mobile app.
 Increased focus on digital and IT infrastructure providing scale and efficiencies.
Strategic overview
2015 witnessed the successful roll out of Diamond Bank’s technology-led retail strategy which
captures Nigeria’s favourable macroeconomic and demographic fundamentals, namely a large
underbanked population who are increasingly digitally active. The strategy has led to the
acquisition of 5,920,190 new retail customers in 2015.
The year was marked by a number of difficulties in the wider economy that have impacted on the
banking sector, prompting the issuance of profit guidance announcement on March 11.
However, mitigating actions, including a focus on cost reduction, are being taken to address these
challenges. As a result, Diamond Bank is better positioned for the future and expects to see
improved earnings in 2016.
Commenting on the results, the Chief Executive Officer, Mr. Uzoma Dozie said:
“2015 was undoubtedly a challenging year for us owing to a mixture of external factors not
limited to regulatory headwinds and a difficult macroeconomic environment. Whilst this led to
additional impairment charges following a prudent review, we have further tightened the criteria
for loan originations in order to better align our loan portfolio with the macroeconomic
conditions. As a result, we are confident that the overall quality of our loan book remains high.
Importantly, there are clear signs that the new strategy and initiatives to reduce costs are proving
successful and are reflected in certain financial indicators. Fundamentally, by taking various
mitigating actions and implementing the retail-led digital strategy, Diamond Bank has an
excellent platform from which to achieve growth, profitability and shareholder returns in the
years ahead. New retail accounts opened has grown more than fivefold and with a network of
over 24,000 agents as at December 2015, active account ratio continues to improve. These,
creates a measure of confidence going into the future”
Group Statement of Comprehensive Income
31 Dec. 2015 31 Dec. 2014
YoY
N'000
N'000
Change
Interest and similar income
157,860,427 161,129,626
(2.0%)
Interest expense
(48,454,172) (51,553,435)
6.0%
Net interest income
109,406,255 109,576,191
(0.2%)
Net fee and comm. and other income
50,404,140
44,178,105
14.1%
Impairment Charge
(55,172,108) (26,371,106) (109.2%)
Net operating income
104,638,287 127,383,190 (17.9%)
Employee benefit expenses
(31,905,402) (33,340,434)
4.3%
Operating expenses
(65,641,155) (65,941,524)
0.5%
Profit/(loss) before tax
Income tax
Profit/(loss) after Tax
Other comprehensive income (net)
Total comprehensive income
7,092,730
(1,436,108)
5,656,623
2,244,104
7,900,727
28,101,232
(2,616,013)
25,485,219
(217,802)
25,267,417
(74.8%)
45.1%
(77.8%)
1130.3%
(68.7%)
Group Statement of Financial Position
Cash and bal. with central banks
Financial assets held for trading
Derivative assets
Assets pledged as collateral
Loans to banks
Loans and advances to customers
Investment securities
Investment in associates
Assets held for sale
Fixed and intangible assets
Deferred tax
Other assets
Total assets
Deposits from Banks
Deposits from Customers
Current income tax liability
Other liabilities
Borrowings
Long term debt
Equity
Total equity and liabilities
31 Dec. 2015
31 Dec. 2014
YoY
N'000
N'000
Change
361,166,936
301,393,080
19.8%
13,116,843
3,481,299 276.8%
161,622
50,012 223.2%
172,100,785
103,397,647
66.4%
60,103,340
296,098,561 (79.7%)
763,634,827
791,094,667
(3.5%)
267,337,206
342,834,637 (22.0%)
2,918,000 (100.0%)
4,409,085
4,333,658
1.7%
67,518,381
58,600,696
15.2%
4,984,544
4,987,386
(0.1%)
38,698,711
23,933,731
61.7%
1,753,232,280 1,933,123,374
(9.3%)
115,819,590
68,760,427
68.4%
1,233,591,063 1,493,081,203
(17.4%
1,697,816
2,448,756 (30.7%)
46,217,258
53,312,429 (13.3%)
102,719,571
74,637,231
37.6%
38,577,527
31,858,561
21.1%
214,609,455
209,024,767
2.7%
1,753,232,280 1,933,123,374
(9.3%)
Key Ratios & Per Share Data
•
•
•
•
Capital Adequacy Ratio of
16.3% (17.5% Dec 2014)
Loan to deposit ratio at
66.5% (55.6% Dec 2014)
Liquidity ratio (Bank) 53.8%
(41.7% Dec 2014)
Cost of risk 6.7% (3.4% Dec
2014)
•
•
•
•
Coverage Ratio of 100.4%
(93.3% Dec 2014)
Net Interest Margin of 6.1%
(6.6% Dec 2014)
Cost to income ratio of
61.0% (64.6% Dec 2014)
NPL ratio of 6.9% (5.1 %
Dec 2014)
•
•
ROAE of 2.7% (14.7% Dec
2014)
EPS of 24(k) (166k Dec.
2014)
For the detailed Profit and Loss account, Balance Sheet, Cashflow statement and notes to accounts,
please visit our website - http://www.diamondbank.com
About Diamond Bank Plc
Diamond Bank Plc began as a private limited liability company on March 21, 1991 (the company was
incorporated on December 20, 1990). Ten years later, in February 2001, it became a universal bank. In
January 2005, following a highly successful Private Placement share offer which substantially raised the
Bank's equity base, Diamond Bank became a public limited company. In May 2005, the Bank was listed
on The Nigerian Stock Exchange.
Today, Diamond Bank is the fastest growing retail bank in Nigeria with a track record of high quality
banking solutions for customers. It’s the lead driver of financial inclusion and enhanced customer
experience through innovation and technology. Regarded as supporter of lifestyle trends, it mobile
banking app, “Diamond Mobile” currently has over 1 million active subscribers on its platform. Diamond
Bank has over the years leveraged on its underlying resilience to grow its asset base and to successfully
retain its key business relationships.
It has also played a leading role in partnering with domestic and International bodies such as Women’s
World Banking, Bill and Melinda Gates Foundation, MTN etc. to create easy access to financial services
for the unbanked.
We have retained excellent banking relationships with a number of well-known international banks,
allowing us to provide a bouquet of world class banking services to suit the business needs of our
clients. These international banking partners include Diamond bank UK, Bank of Beirut; BanqueLibanoFrancaise, BHF Bank, BNP Fortis, BNP Paribas, Byblos Bank, Citibank, Commerzbank, Credit Suisse,
Deutsche Bank, FBN (UK) Limited, HSBC Bank, ING Bank, KBC Bank, Mashreq Bank, Nordea Bank, SMBC
Ltd, Standard Bank, Standard Chartered, SvenskaHandelsbanken, UBS Zurich.
More information can be found at www.diamondbank.com
Investor Relations Contacts
Chiugo Ndubisi
Ag. Chief Financial Officer
Ifeatu Onwuasoanya
Head, Investor Relations
[email protected]
+234 (1) 448 9832
[email protected]
+234 (1) 448 9866