- Diamond Bank Plc released its 2015 half year results showing earnings per share dropped year on year by 45% to N0.52 (2015 H1: N0.95)
- The Bank in its second quarter result posted Net Interest Income of N29.7billion 3.2% higher than the N28.8 billion it posted in the first quarter of the year.
- However, the bank saw income from commissions and fees rise 14% to N9.5billion.
- Things however went south for the bank after it posted an operating expense of N27 billion (N24.1billion).
- Diamond Bank also continued to take in impairment charges recording another N6.5billion this quarter alone. Most of its provisions have come from bad overdraft loans
- The Bank has now provided for a cumulative loan loss of N65billion since Q1 2013.
- We also noted that the bank’s deposits dropped significantly by 9% to N1.4trillion
- Also of note was the fact that the bank lent about 18.7% of its Loans and Advances to other banks.
- See press release
| Diamond Bank | Â | Â | Â |
| 2015 | Q1 | Q2 | %age Change |
| Â | N’m | N’m | Â |
| Income Statement | Â | Â | Â |
| Â | Â | Â | Â |
| Gross Earnings | Â | Â | #DIV/0! |
| Interest Income | Â Â Â Â Â Â 40,487 | Â Â Â Â Â Â Â Â 42,677 | 5.41% |
| Interest Expense | Â Â Â Â (11,642) | Â Â Â Â Â Â (12,902) | 10.83% |
| Net Interest Income | Â Â Â Â Â Â 28,846 | Â Â Â Â Â Â Â Â 29,775 | 3.22% |
| Exchange Commissions and Fees | Â Â Â Â Â Â Â Â 8,362 | Â Â Â Â Â Â Â Â Â Â 9,578 | 14.54% |
| Investment & Other Income | Â Â Â Â Â Â Â Â 1,822 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 83 | -95.45% |
| Â | Â | Â | Â |
| Total Operating Income | Â Â Â Â Â Â 39,029 | Â Â Â Â Â Â Â Â 39,436 | 1.04% |
| Operating Expenses | Â Â Â Â (24,195) | Â Â Â Â Â Â (27,030) | 11.72% |
| Operating Profit | Â Â Â Â Â Â 14,835 | Â Â Â Â Â Â Â Â 12,406 | -16.37% |
| Loan Impairment | Â Â Â Â Â Â (6,468) | Â Â Â Â Â Â Â Â (6,580) | 1.75% |
| Share of Profit/(Loss) of associate | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â –Â Â | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â –Â Â | Â |
| Profit from discontinued operations | Â | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â –Â Â | Â |
| Profit before Tax | Â Â Â Â Â Â Â Â 8,367 | Â Â Â Â Â Â Â Â Â Â 5,826 | -30.37% |
| Taxation | Â Â Â Â Â Â (1,200) | Â Â Â Â Â Â Â Â Â Â Â Â (839) | -30.07% |
| Profit after tax | Â Â Â Â Â Â Â Â 7,168 | Â Â Â Â Â Â Â Â Â Â 4,987 | -30.42% |
| Tax as a %age of PBT | 14.34% | 14.40% | Â |
| Indices | Â | Â | Â |
| EPS (Kobo) | Â Â Â Â Â | Â Â Â Â Â Â | |
| Oustanding Shares | Â 23,160.39 | Â Â 23,160.39 | Â |
| Interest Margin | 71.2% | 69.8% | 2.12% |
| Operating profit as a percentage of Operating Income | 38.0% | 31.5% | 20.82% |
| Cost to Income Ratio | 62.0% | 68.5% | -9.56% |
| Loan Impairment to Operating Profit | 43.6% | 53.0% | -17.80% |
I’m wondering why EPS increased on the table ! Likely error.
I’m expecting further bearish sentiment to weigh on Diamond ! They are missing their former MD.
It is an error. Corrected