Diamond Bank Plc is on the ropes in respect of 2O15 annual accounts as bad loans trounce earnings in the period, as against 2O14.
Accordingly, the bank has issued a profit warning on its 2O15 result to the Nigerian Stock Exchange [NSE]. The notice to the NSE read in part:
“The continuing deterioration in Nigeria’s macro-economic conditions has resulted in Diamond Bank Plc recognising higher than expected impairment charges on loans made to the Energy and Commercial Business sectors.
In light of these deteriorating conditions, and subsequent review of Diamond Bank Plc’s management accounts for the financial year ended December 31, 2015, preliminary indications are that earnings will be lower than in 2014.
Detailed financial statements for the year ended December 31, 2015 are expected to be released on or before March 31, 2016.
Diamond Bank wishes to reiterate that in recent years it has deployed considerable resources in building a dependable risk management framework, and the quality of its loan portfolio in general, remains high.
Mitigating Action
The Bank remains determined to deliver on its stated strategy of creating Nigeria’s leading technology-led retail bank. Already, in 2016 the business has made significant changes to its operating structure that will result in reductions in operating costs.
Further investment has been made to improve customer relationships and revenue in our core business segments. These actions aim to deliver improved earnings and lower operating costs from 2016 onward.
Overall, despite the headwinds and the fact that 2016 presents a tough operating environment for the industry, we remain optimistic on the fundamentals underpinning our long term retail-led business strategy.”
