Diamond Bank Stuns Shareholders with Worst Quarterly Result Since 2012

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
2015	Q1	Q2	%age Change
	N’m	N’m
Income Statement

Gross Earnings			#DIV/0!
Interest Income	40,487	42,677	5.41%
Interest Expense	(11,642)	(12,902)	10.83%
Net Interest Income	28,846	29,775	3.22%
Exchange Commissions and Fees	8,362	9,578	14.54%
Investment & Other Income	1,822	83	-95.45%

Total Operating Income	39,029	39,436	1.04%
Operating Expenses	(24,195)	(27,030)	11.72%
Operating Profit	14,835	12,406	-16.37%
Loan Impairment	(6,468)	(6,580)	1.75%
Share of Profit/(Loss) of associate	–	–
Profit from discontinued operations		–
Profit before Tax	8,367	5,826	-30.37%
Taxation	(1,200)	(839)	-30.07%
Profit after tax	7,168	4,987	-30.42%
Tax as a %age of PBT	14.34%	14.40%
Indices
EPS (Kobo)
Oustanding Shares	23,160.39	23,160.39
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%

No Result