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Diamond Bank shareholders to reap N4 billion dividend
DIAMOND Bank has declared a dividend of N4.2 billion to its shareholders, translating to 55k per share. This development was endorsed by the bank's shareholders at its 16th yearly general meeting held at the Ladi Kwali Hall of Abuja Sheraton Hotels and Towers on Tuesday.
This represents a growth of 65.4 per cent over N5.4 billion recorded in 2006. This development followed the writing-off of the goodwill in the bank's books arising from the consolidation with the former Lion Bank Plc. The bank's shareholders, at last year's AGM, had passed a resolution towards writing-off the goodwill.
The Profit Before Tax was achieved from gross earnings of N39.4 billion, an increase of 73.8 per cent over N22.8 billion earned in the previous year. The Profit After Tax (PAT) for the year grew by 78.2 per cent to N7.1 billion, as against N4.0 billion achieved in 2006. The PAT resulted in an earning per share of 91k for the year compared to 59k in 2006.
These achievements are indications that the implementation of the bank's post-industry consolidation growth strategies have started to yield good results. Details of the audited results for the year under review also indicate significant improvements in other performance indices.
The deposit base achieved a 46.2 per cent growth, moving from N148.6 billion in 2006 to N217.2 billion in 2007 while total assets plus contingent liabilities rose to N416.4 billion, a growth of 57.6 per cent over the figures for last year.
The Group Managing Director/CEO, Mr. Emeka Onwuka, explained that the bank achieved the accelerated growth in earnings and profitability by attracting, retaining and deepening customer relationship in all its markets.
The bank launched a number of initiatives that create value by enhancing its capability to serve the customer, including the introduction of a number of products and services focused on the needs of the customers.
The value-adding products include Diamond BusinessXpress Account - a specialised current account designed to support the growth of Micro, Small and Medium Enterprises (MSMEs) with attractive features like free transaction cost and easy access to credit facilities.
In response to the need to facilitate effective payment for trade transactions between Nigeria and the Francophone West African countries, especially Benin Republic, the bank launched Diamond NGN/CFA Easy Trade.
The bank also raised the bar in the international trade operations in Nigeria with the introduction of a document and transaction monitoring service tagged Diamond Trade Tracker. This is a web-based service designed to provide corporate customers access to on-line, real-time information on their international trade transactions at no extra cost.
As part of the bank's commitment to excellent customer service, its Information Technology infrastructure was upgraded by the adoption of the latest version of Flexcube Banking Application, the number one rated bank application in the world. The new application has internal and external connectivity to create synergy of operations and significantly improve efficiency in service delivery to the delight of its customers.
Diamond Bank is improving its positioning in the various market segments. It will be recalled that the bank entered into strategic equity partnership with Actis Capital LLP towards the end of the last financial year. The later injected $134 million (N17.1 billion) fresh equity capital into the bank to finance some of its growth strategies.
According to Onwuka, "Actis is introducing expert consultancy services to the bank to accelerate the delivery of the bank's strategy and maximise shareholder value creation. In this regard and towards driving the growth, size and efficiency of the bank's balance sheet to achieve the desired trend in earnings and profitability, we are working with the consultants in the areas of retail banking, balance sheet management, joint venture partners, risk management and people strategy."
The recent investments in promising financial services sub-sectors, including insurance, mortgage and pension funds, will improve the growth, earning mix and profitability of the bank's business over time.
"Conscious of the fact that these businesses are outside its core competence areas, the bank is working with very competent and experienced firms to speedily position the subsidiaries for market penetration," Onwuka added."
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