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Diamond Bank Plc Q3 2017 Conference Call " Earnings Presentation - The Key Takeaways

Proshare

Monday, November 06, 2017 5:56PM / Proshare Markets 


Diamond Bank Plc held its Q3’17 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.
 

The management of the bank stated that the naira, within the macroeconomic environment, stabilizes after consistent CBN interventions and in foreign reserves just as oil productions also stabilizes as attacks on oil and gas infrastructures reduces while prevalent high food prices remain a concern amidst slowing inflation rate. The economy was said to be still vulnerable as output in many sectors are still negative.
 

Key developments around the bank’s 2017 financial year reflected that impairment charges decreased year on year due to strengthened risk management and credit process yielding results. The bank’s net interest income increased year on year whilst non-interest income declined as the bank expects increased transactions and product offerings on digital platforms to improve non-interest revenue in the medium to long term.
 

According to the bank, its retail banking is delivering the strategy as its retail loan portfolio remained flat Q-o-Q but declined by N14 billion Y-o-Y. This reflects a conservative approach to underwriting with many loans of a short term nature i.e. less than 12 months. The bank’s
deposits declined Y-o-Y and Q-o-Q, reflecting attractive government securities while the Mobile banking share of transactions increased Q-o-Q and Y-o-Y as branch banking continues to decline. Thus, digital service delivery is now preferred. 

In a nutshell, below are the key takeaways from the Q3 2017 earnings presentation made by the bank’s management;

1.  
The bank’s currently has 1,140 active ATMs with ATM transaction count put at 59m and N1,041m earned as ATM income. 

2. The bank’s flagship app, Diamond Mobile continues to deliver conveniences in banking to its customers with over 2.6m customer on the platform. Over 160,000 signed on in Q3 2017 alone.
 

3. The bank recorded drop in the number of accounts driven by internal recategorization of accounts and not as a result of customers leaving the bank.
 

4. The bank’s gross loan breakdown by business segments showed that corporate banking accounted for 83%; business banking 11% ;and retail banking 6%; and
 

5. Its gross loan breakdown by sectors also showed that the oil and gas sector accounted for 40% of the group’s lending at September 2017.
 

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