Diamond Bank Joins FBN Holdings To Warn Investors On Profit Decline

By OLUSHOLA BELLO
Diamond Bank Plc has joined First Bank of Nigeria Holdings (FBN Holdings) to warn its investors of decline profit for the financial year ended December 2015.

The condition given by the financial institution include hike in impairment charges on loan and increased operating expenses.

Diamond Bank had reported 33 per cent growth in impairment charges to N19.5 billion in nine-month ended September, 2015 as against N14.69 billion in nine-month 2014 while operating expenses

Also, profit after tax dropped by 21 per cent from N20.18 billion to N15.97 billion for the period under review.

To mitigate further decline in profit, the lender vowed to deliver on its stated strategy of creating technology-led retail banking and reducing its operating expenses in order strengthen its profit.

Diamond Bank statement that was posted on Nigerian Stock Exchange (NSE) website stated, “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.”