Diamond Bank ‘s second quarter (Q2) unaudited financial report for the period ended June 30, 2018, made available to the Nigerian Stock Exchange (NSE), showed that the digital strategy adopted to grow the retail business attracted additional three million new customers.
The bank said the improved performance recorded in digital penetration strategy as well as the significant increase on its mobile platform emphasized its strong focus on the Nigerian market.
According to the bank, non-interest income within the period went up 6.4 per cent to N18.8billion on higher fees from retail transactions on mobile platform, while customers’ loan volume decreased by 3.6 per cent to N728.7billion as maturities exceeded new loans during the period.
However, investments in fixed income securities increased 8.0 per cent to N241.7billion during the period.
Its net interest income reduced year-on-year by 14.4 per cent to N46.2billion due to lower interest income from loans and investments, and higher interest expense on deposits, just as impairment charges declined 2.9 per cent to N18.39billion.
The bank’s profit after tax for the first half year stood at N2.2billion.
The Chief Executive Officer, Uzoma Dozie, said: “At the macro level the Nigerian economy continued to record improvements because of stable, higher than anticipated oil prices.
We have witnessed 15 months of expansion reflected in monthly PMI data, but investor sentiment has remained mixed caused in part by the election season factor.”
“We have capitalised on the positive macro environment to sustain interest income in the short run with positive prospects for growth and have made progress in growing non-interest income.
“Importantly, we have continued to build awareness of Diamond Bank in the wider financial ecosystem to develop new frontiers in retail banking.
Amongst these activities were the Beauty Souk, and TechFest events targeted at entrepreneurs and emerging businesses in the fashion and technology sectors respectively.
“Our partnership with the Lagos Business School’s Enterprise Development Centre, to support young entrepreneurs continued with the seventh season of the Building Entrepreneurs Today programme.”
In addition to retail banking, Dozie said the bank would invest more resources in the mid-market business banking services to leverage emerging opportunities in that segment.
“In the second half of 2018, these investments will lead to improved profitability overall.
Despite a tough six months being reported, the outlook for 2018 remains bright for the Bank as we continue to focus on a return to strong profitability and improvement in other KPIs.”
Source: G Business