In a statement made available to the public, Diamond Bank Plc has confirmed the disbursement of N1 billion loan to micro, small and medium-sized enterprises (SMEs).
The bank said its retail strategy led to the fund disbursement to small business owners under the cash flow-based SME lending scheme in partnership with the Women’s World Banking.
“The global economy is currently witnessing a shift in trade relations alongside continued interest rate adjustments. This has led to greater volatility across markets and increasingly fragile economies.
“The Nigerian economy has not been immune to certain headwinds; so that while the economy recorded quarters of expansion, the rate of growth has weakened. However, against this backdrop, our digital-led retail strategy has remained robust.” The Chief Executive Officer, Diamond Bank, Uzoma Dozie was quoted.
According to Dozie, through the strategy, the bank had been able to continue scaling up by reaching a wide pool of customers both cost-effectively and efficiently.
SMEs access to credit facility
Small and Medium-sized Enterprises make a significant contribution to the socio-economic and political infrastructure of developed and developing countries. The ability of SMEs to develop, grow, sustain and strengthen themselves is heavily dependent on their capacity to access and manage finance.
While many SMEs face a lot of challenges acquiring loans from banks, the ability to access finance is a major factor affecting the growth and success of SMEs.
Diamond Bank Plc had released its financial result for the quarter ended 30 September 2018. The bank’s Gross earnings for the group dropped from ₦143 billion in 2017 to ₦142 billion in the year under review. This represents a 0.77% drop year on year.
Profit Before Tax also fell from ₦4.7 billion in 2017 to ₦3.08 billion. This represents a 35.4% reduction year on year.
Profit After Tax also dipped from ₦3.9 billion in 2017 to ₦1.6 billion. This represents a 57.6% shrink year on year.
The Earnings Per Share also dropped sharply from ₦17 in 2017 to ₦7 in 2018. This represents a 58.8% increase year on year.
Diamond Bank Plc closed at ₦1.44 in Thursday, November 1, 2018’s trading session on the floor of the Nigerian Stock Exchange (NSE).