Diamond Bank records 15% profit drop in Q1

Diamond Bank Plc suffered a 15.1 per cent decline in its profit after tax for the first quarter of 2015, the bank’s financial statements for the period, which were filed with the Nigerian Stock Exchange on Monday, showed.

The statements for the three-month period ended March 31, 2015 showed that the bank’s PAT fell from N8.446bn in the first quarter of 2013 to N7.167bn.

The bank, which grew its interest and similar income by 5.9 per cent year-on-year from N38.244bn to N40.487bn in the review period, recorded a 9.5 per cent drop in its profit before tax. Its PBT fell to N8.367bn from the N9.240bn it declared for the corresponding quarter of 2013.

Diamond Bank’s basic earnings per share fell by 46.6 per cent, while its diluted earnings per share plunged by 70.6 per cent.

Diamond Bank had also reported a drop in profit for the financial year ended December 31, 2014.

The results for the year, which it released earlier, had shown that the group’s full-year 2014 profit after tax had declined by 10.7 per cent year-on-year from N28.544bn in 2013 to N25.485bn.

Diamond Bank had also suffered a 12.4 per cent drop in profit before tax as PBT fell from N32.079bn a year earlier to N28.101bn in 2014.

This was despite a 12.57 per cent rise in the group’s interest and similar income to N161.129bn from N143.127bn.

In 2014, the bank had increased its loans and advances to customers by 14.8 per cent from N689.168bn to N791.094bn, while its total assets jumped by 27.3 per cent to N1.933tn from N1.518tn.

Diamond Bank had last year raised N50.37bn via rights issue to enhance its operations.

Under the issue, which opened on July 30, 2014 and closed in August, the bank had offered a total of 8,685,145,863 ordinary shares of 50 kobo each to its shareholders in the ratio of three new ordinary shares for every five ordinary shares held as of June 13, 2014 at N5.80 per share.

Ahead of the rights issue the bank explained that the net proceeds would be applied towards the development of the bank’s Information and Communications Technology infrastructure.

It added that the fund would also be used as working capital support as well as for the expansion and refurbishment of the bank’s business locations.

The issue was also expected to improve Diamond Bank’s tier 1 capital and position it to seize bigger opportunities in the sector.

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