Diamond Bank Plc FY 2016 and Q1'17 Conference Call & Earnings Presentation - The Key Takeaways


Tuesday, May 09, 2017  6:40 PM/ Proshare Markets

Diamond Bank Plc today held its FY 2016 and Q1’17 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.

The bank started by stating its key strengths which are technology and innovation to provide beyond banking lifestyle solutions for customers; leading digital transformation in response to changing consumer lifestyles; new and existing partnerships with third parties to broaden access to financial services with its key partners being MTN, WWB and UASID; and setting new governance benchmarks.

The bank’s Gross earnings decreased by 2.2% YoY to N212.4 billion in FY 2016. This was driven by lower interest income earned during the year while profit also went down within the same period under review due to impairment charges. However, the bank stated that action is underway to deliver future improvement.

Its operating expenses stabilized as the bank stated that greater  cost discipline is underway. Its NPL ratio is up to 9.5% in FY 2016 from 6.9%in FY 2015  while the bank stated that its strengthened risk management is delivering value.

A breakdown of the bank’s gross loan by economic sector showed its lending is concentrated in the following sectors in FY 2016 and they are Oil & Gas (40%), General Comm (16%), Manufacturing (11%), Others (8%), Real Estate and Construction (7%), Power & Energy (7%) etc.

In March 2017, the gross loan breakdown stands thus; Oil & Gas (40%), General Comm (15%), Manufacturing (11%), Others (10%), Real Estate and Construction (7%), and Power & Energy (7%).

In a nutshell, below are the key takeaways from the earnings presentation made by the bank management;

·         The bank plans to achieve ROE of 8% as its FY 2017 guidance 

·         The improved usage of the bank’s mobile APP will help drive its non-interest income. 

·         Two million customers have signed on to the bank’s flagship app, Diamond Mobile as at January 2017. 

·         In furtherance of its retail banking strategy, the bank plans to access new people and connect markets; increase channel footprint; improve fees and income by encouraging more transactions and as well expand service offerings on its e-payment solutions. 

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