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Tag: Diamond Bank

  • Diamond Bank provides financial support for firms

    Do you face financial constraint in running your healthcare facility?

    Good News. Diamond bank is providing “medi-loan” for for entrepreneurs in healthcare sector to help them improve on their operating standard.

    Dr Uzoma Dozie, the Deputy Managing Director (DMD) of Diamond Bank, said the loan is to provide financial support for healthcare enterprise, “because the sector lacks access to capital and this initiative allows for free advisory services to improve the operating standard of the healthcare sector in Nigeria.”

    Dozie broke the news at the launch of Diamond Medi-Loan Qualitycare which took place at the Lagos Oriental Hotel, Lagos, Nigeria.

    The programme will be rolled out at these regions- Lagos, Ibadan, Enugu,Akwa, Owerri and Umuahia.

    According to him  most healthcare providers do not see the sector as a business. “I am canvassing for a change of attitude where medical activities will be conducted with all seriousness with business in focus, once the right setting is achieved.

    “Any wonder Nigeria with 170 million population is far from achieving Millennium Development Goals (MDGs) and has one of the highest maternal death ratios in the world.”

    He said: “Would be beneficiaries of Medi-loan Qualitycare include clinics and hospitals either in private or public primary and secondary healthcare; pharmacy and medical laboratory practices., he said.

    Diamond Bank, he said, do not just provide lending services to customers but also provides technical assistance in terms of how to help improve the quality of its customers and how to run their businesses not only from the healthcare perspective.

    He said with the Medi-Loan, the bank will provide the customers with assistant services to manage their health and business.

    Dozie said: “the loan is mainly for the private sector but we are actually working with the public sector to provide the service. Pharma Access and Safe Care have been collaborating with the public sector to come up with the package to deliver it to private sector practitioners.”

    Dozie said to be eligible for this service, the company or oganisation must have been in the business for two years, must have proper healthcare registration.

    “The enterprise must have the willingness to work with Safe Care (quality standards), its must service at least 10 customers per day. Also, it must have no exclusive focus on affluent patients.

    “Loans that would be offered are of different categories. They include N200, 000  to N1m for starters. For small loan it is N1m to 1.6 m, medium loan N1.6m to eight million. Large loan offered to the enterprise is between N5.6m toN8m,” he said.

    Program Director of Medical Credit Fund (MCF), Uzodinma Ken Osisiogu, said MCF is the sister partner to Safe Care under Pharma Access.

    “MCF stands in the middle of three parties coming together, which is the providers, the banks and the CFM team to ensure that pre-assessment is done for the parties. MCF assesses the business to know if it will be profitable.

    He said: “Anyone coming for the loan must be in business and the business must be profitable.MCF has the responsibility to come up with the business plan and therefore hand it over to Diamond Bank who does the regular credit due diligence (CDD).

    “MCF provides the technical expertise before the individual or healthcare enterprise goes to the bank, then Safe Care implements what is in the business plan. This is done to ensure the loans will come back.”

    Osisiogu said: “Once the loan is being offered, MCF will help to assess the loan, develop the business plan and put the practice into shape and hence provide business quality training for both the staff and facilities to aid growth”.

  • Diamond Bank’s rights issue opens for trading on NSE

    Diamond Bank’s rights issue opens for trading on NSE

    The Nigerian Stock Exchange (NSE) has listed the rights issue by Diamond Bank Plc for trading, paving the way for non-shareholders to buy renounced rights from existing shareholders.

    Diamond Bank is raising about N50.4 billion from its shareholders through a rights issue of about 8.69 billion ordinary shares of 50 kobo each at N5.80 per share. Diamond Bank’s share price closed at the weekend at N6.35 per share. The rights issue had been pre-allotted to shareholders of the bank as at June 13, 2013.

    The rights issue opened on July 30, 2014 and it is expected to run till August 26, 2014.

    Rights issue gives the first right of refusal to existing shareholders and thus preserve existing shareholding structure. It however provides window for new investors to buy into the company through rights trading on the secondary market.

    Half-year report of Diamond Bank for the period ended June 30, 2014 showed that profit before tax dropped from N17.56 billion in first half 2013 to N16.07 billion in first half 2014. However, profit after tax increased from N12.64 billion to N13.79 billion.

    Diamond Bank had announced a 16.7 per cent increase in profit before tax to N32.1billion for the full year ended December 31, 2013. The bank declared a dividend of 30 kobo per ordinary share.

    Group managing director, Diamond Bank, Dr. Alex Otti, had noted that the pre-tax profit exceeded its N30 billion profit guidance pointing out that the result is rooted in the bank’s strength to attract low-cost deposits and deploy these into various assets at profitable yet acceptable risk levels.

    While the bank achieved a net interest income of N104.6 billion, an increase of 17.1 per cent from N89.3billion recorded in 2012, it generated interest and similar income of N143.1 billion, an increase of 27.3 per cent from N112.4 billion earned in 2012. Diamond Bank also achieved a 46.2 per cent increase in other income from N23.8 billion it recorded in the preceding year to an impressive to N34.8 billion in 2013.

    Diamond Bank’s 2013 financial results also showed improvements in various areas of the group balance sheet with loans and advances to customers increasing by 17.8 per cent to N689.2 billion; deposits from customers increasing by 32.5 per cent to N1, 206 billion.

     

     

     

  • Diamond Bank seeks N50.4b from existing shareholders

    Diamond Bank seeks N50.4b from existing shareholders

    Diamond Bank Plc plans to raise about N50.4 billion from its shareholders as it seeks to strengthen its capital base.

    A regulatory filing obtained at the weekend by The Nation indicated that Diamond Bank plans to undertake a rights issue of about 8.69 billion ordinary shares of 50 kobo each at N5.80 per share. Diamond Bank’s share price closed at the Nigerian Stock Exchange (NSE) at N6.70 per share.

    According to the report, the rights issue would be pre-allotted to shareholders of the bank as at the weekend, June 13, 2013.

    Already, the bank has submitted application for the rights issue to the NSE.

    The Nation had recently reported exclusively that many banks might be consider raising new capital to complement their balance sheet to place them in better position to increase lending and further their expansion.

    Investment banking sources had told The Nation that although the average capital adequacy ratio in the Nigerian banking industry remains considerably high and most banks are above regulatory benchmark, banks have indicated they might seek new capital.

    The banks were said to be considering raising new capital mostly through debt and quasi-equity instruments but some were also considering equity issues.

    Sources said banks were being proactive to ensure adequate long-term capital plan for their expansion plans. Other banks that have initiated plans to raise funds included Skye Bank Plc and Sterling Bank

    Recent analysts report indicated that Nigerian banks were generally adequately capitalised with several banks.

    According to analysts, most of the banks are adequately capitalised to absorb losses without requiring emergency capital injections in case of any further write-offs.

    Analysts however noted that the rebasing of the Nigerian economy has created lending space that banks will require more capital to fill.

    Diamond Bank had announced a 16.7 per cent increase in profit before tax to N32.1billion for the full year ended December 31, 2013. The bank declared a dividend of 30 kobo per ordinary share.

    Group managing director, Diamond Bank, Dr. Alex Otti, had noted that the pre-tax profit exceeded its N30 billion profit guidance pointing out that the result is rooted in the bank’s strength to attract low-cost deposits and deploy these into various assets at profitable yet acceptable risk levels.

    While the bank achieved a net interest income of N104.6 billion, an increase of 17.1 per cent from N89.3billion recorded in 2012, it generated interest and similar income of N143.1 billion, an increase of 27.3 per cent from N112.4 billion earned in 2012. Diamond Bank also achieved a 46.2 per cent increase in other income from N23.8 billion it recorded in the preceding year to an impressive to N34.8 billion in 2013.

    Diamond Bank’s 2013 financial results also showed improvements in various areas of the group balance sheet with loans and advances to customers increasing by 17.8 per cent to N689.2 billion; deposits from customers increasing by 32.5 per cent to N1, 206 billion.

  • Diamond Bank, firm partner on travel cards

    Diamond Bank, firm partner on travel cards

    Diamond Bank has announced its partnership with Wakanow, Nigeria’s leading online travel firm.

    The partnership will see the introduction of the Wakanow cards, a collection of MasterCard-branded pre and post-paid cards that will enable prospective travellers to enjoy special discount and pocket friendly travelling.

    The Deputy Managing Director, Diamond Bank Plc, Uzoma Dozie, said the launch was borne out of a need to give travellers the best deals.

    “As a key player in the country’s financial industry, we are always looking out for innovative ways to impact the lives of Nigerians. That was what informed our decision to work with Wakanow. What we are doing essentially is to give financial ease to the teeming Nigerians who wish to travel whether outside or within the shores of this country for whatever reasons,” he said.

    He added that the bank’s decision to work with Wakanow stems from the company’s immense contribution to the travel/tourism industry.

    “The decision to work with Wakanow was not a hard one for Diamond Bank to make. Wakanow is a prominent player in the travel and tourism industry and just like Diamond Bank, Wakanow is renowned for putting the customers first in all they do. This partnership coming at a crucial time when Nigerians are preparing to travel to Brazil for the World Cup to support the national team, the Super Eagles,” explained Dozie.

    The Chief Executive Officer of Wakanow, Obinna Ekezie, said the firm is at the forefront of making travelling affordable to Nigerians. “This is just one of the ways we intend to fulfill that mandate. With Diamond Bank coming on-board to support us, we have raised the bar a notch higher.”

    However, the Head, Corporate Communications Division, Diamond Bank, Ayona Trimnell, said users will enjoy discounts on flight tickets and hotels, and earn loyalty points on every purchase which can be exchanged for free services on Wakanow Reward programme.

  • Diamond Bank backs MSMEs

    Diamond Bank backs MSMEs

    Diamond Bank has reiterated its commitment to Micro, Small and Medium Scale Enterprises (MSMEs) through its BusinessXpress that provides financial and non-financial interventions to the sub-sector.
    It made the promise at a seminar in Lagos aimed at educating MSMEs on how to build capacity in financial management.
    The topics discussed included: “Build up to breakthrough”, “Introduction to cash flow and Diamond Bank offerings for MSMEs”.
    Addressing participants, its Executive Director, Retail Banking, Mr. Uzoma Dozie, stressed the need for entrepreneurs to have well-articulated visions for their businesses.
    He said: “Entrepreneurs need to have a well-articulated vision, which involves understanding the perspective of their customers and staff, because a business grows as her customers grow and capacity building is what will help MSMEs to sustain the growth of their businesses.”
    “Reduction of physical cash flow in MSMEs, by making use of electronic banking channels, which helps to monitor expenses and inculcate financial discipline, is fundamental to the ultimate success of a business,” Dozie added.
    Head of Retail Banking, Mr. Jude Anele, who spoke on the contribution of MSMEs to the growth of the economy, said the bank is not just providing loans, but building the capacities of MSMEs, while insisting that the success of MSMEs is crucial to Diamond Bank and the economy at large.
    On the bank’s determination to continue with the seminars, Head, Micro, Small and Medium Enterprises Segment, Mr. Chima Nnadozie, revealed that the lender has been supporting MSMEs with loans without collateral since 2009, offering a total range of solutions that MSMEs need and has been encouraged to continue the seminars because the feedback from participants has been very positive.
    Successful entrepreneurs, who shared their stories at the event, included the Executive Director of Mopeth Group of Companies, Mrs. Odunola Oyegade and the CEO of Avis Nigeria, Mr. Kolawole Ogunbanjo. They stressed the importance of reading to entrepreneurs.

  • Diamond Bank promotes over 450 Staff

    Diamond Bank PLC recently announced the promotion of more than 450 of its staff across various grade levels.

    According to the bank’s Head of Corporate Communications Division, Mrs. Ayona Trimnell, “this recent promotion exercise is part of the bank’s annual performance review exercise as the bank seeks to continuously recognize and reward members of staff who have excelled in the workplace.

    “At Diamond, we have always maintained that the Bank’s performance is linked to the quality of the staff it retains. As such, in the last few days, more than 450 members of staff who have excelled have been promoted.

    “This recent promotion exercise marks a double celebration for staff of the Bank as the Bank recently declared an unprecedented profit after tax of N28.5billion for the last financial year ended. This signifies an impressive 29 per cent growth in the Bank’s profit in an industry that showed largely dwindling financial performance in the last financial year as a result of stifling regulations and negative global economic outcomes.

    “For us to continue to perform excellently like we did in 2013, we have to recruit and retain the best people in the industry. That is why, every year, we recruit the best talent in the industry, and also assess our staff on the basis of key performance indicators (KPIs) and deliverables, said’’ Mrs. Trimnell.

    Diamond Bank has consistently emerged as one of the largest employer of talent in the Nigerian Banking industry with well over 2,224 new recruits in the last financial year, of which 1,181 are fresh graduates from reputable Universities around the country. The Bank boasts of a robust personnel engagement strategy that helps it to continually attract and retain the best talent in the industry.

    This is in fulfillment of its corporate vision of becoming a leading financial institution, with the best people, providing unequalled customer experience and delivering superior shareholder value.

  • Shell, Diamond Bank, others float $30m fund for SMEs

    Shell, Diamond Bank, others float $30m fund for SMEs

    Shell Petroleum Development Company, Diamond Bank Plc and GroFin of South Africa have partnered to float a $30m fund branded ASPIRE NIGERIA to serve as a catalyst for the development and growth of Nigerian Small and Medium Enterprises (SMEs).

    All agreements establishing the fund under a Private Trust have just been signed.

    The fund – ASPIRE NIGERIA – is expected to enhance the operations of indigenous small and medium enterprises through the provision of much needed business development assistance and appropriate finance.

    The objective of the pilot scheme is two folds, and characterises the business vision of its co-promoters.

    In the first instance, it would demonstrate their interest in contributing to the development of SMEs as a means of enhancing wealth creation in the economy; and secondly, the unique approach of the business model introduced by GroFin ensures that SMEs are not just given funds, but also business development assistance.

    ASPIRE NIGERIA is an innovative and important step towards creating sustainable growth of the Nigerian SME sector. Historically, businesses in this sector have not only lacked access to capital, but also skill development. This combination has limited their ability to grow and achieve their potential.

    By integrating the provision of business development assistance and appropriate finance, ASPIRE NIGERIA will support the growth and expansion of SMEs in all sectors of the Nigerian economy.

    It is important to note that the ASPIRE NIGERIA Fund is a joint step in a deliberate effort to address the funding and developmental problems of small and medium scale Nigerian entrepreneurs.

    The Fund will enable credible SME operators to access medium-term, competitively priced financing and business development assistance, ranging between N6 million and N125 million and would hopefully enable them to achieve their growth aspirations.

    Preference will be given to Nigerian enterprises that have limited capability for meeting collateral requirements, and who typically employ fewer than 50 employees, with an annual turnover not exceeding N600 million or gross assets not exceeding N400 million.

    This new and unique service envisioned by ASPIRE NIGERIA would thus help to overcome the barriers faced during start-up and early stage growth of enterprises.

    GroFin, an African specialist business developer and financier, has established GroFin Nigeria to manage the fund on behalf of the Trustees.

    Grofin Nigeria\’s service delivery is based on an innovative business model, which was jointly developed by GroFin and the Shell Foundation, and has been implemented successfully in other African countries. It has the potential for unlocking the entrepreneurial talent in Nigeria and would also help to address the many challenges faced by SME operators in the country.

    Economic development across Africa requires a focus on assisting local enterprises with the potential for growth and expansion. Many enterprises, however, lack the business skills, collateral and documented trading history necessary to access local finance for their start-up / early growth. The Aspire Fund model will address this challenge.

    Shell Foundation (SF), SPDC, and Diamond Bank have different but complementary reasons for supporting this project. For Shell Foundation, the project represents a unique opportunity to pursue its current global strategy of assisting SMEs. For SPDC, the project is part of its continuous efforts to demonstrate commitment to the development of the Nigerian economy and support government initiative to develop SMEs in particular. By providing local entrepreneurs with access to medium-term, competitively-priced credit, SPDC expects the project to act as a force in the development of the local enterprise sector, thereby generate wealth, employment, economic growth and social development.

    For Diamond Bank, it is an opportunity to give back to the community and also apply the expected five per cent of its\’ annual profit to the growth and development of the SMEs in the country.

    The fund will be made up of the following respective contributions:- Shell – US$10 million; Diamond Bank, – US$20 million; and GroFin – US$0.6 million

  • Hyundai Motors partners Diamond Bank on car offer

    Hyundai Motors partners Diamond Bank on car offer

    Hyundai Motors Nigeria Limited (HMNL) in collaboration with Diamond Bank PLC has announced the introduction of flexible sales offer at affordable price.

    Announcing the incentive which promises to be resilient, HMNL Head, Sales and Marketing, Mr Jatin Nadkarni, said: “The objective of the campaign is to woo perceptive customers to ‘live brilliantly’ by buying precision engineered Hyundai vehicles that reassures, on value.”

    He explained that the campaign was part of efforts to implement Hyundai’s brand essence of ‘Modern Premium’ – which seeks to reassert Hyundai’s commitment with new experience and values that are beyond customers’ expectations.

    The offer is not limited to Accent, Elantra and Santa Fe models.

    “The sales offer is exclusively seamless without any hidden charges and is open to individuals and fleet buyers,” Nadkarni noted.

    Prospective customers, including those without pragmatic account with bank, can also access the scheme to procure any of the aforementioned Hyundai vehicles, the sales and marketing helmsman affirmed.

    He added that the scheme offers the first three services free in line with Hyundai Service Schedule.

    Nadkarni said: “The Hyundai experience begins from the very moment a customer walks into any Hyundai Motors Nigeria showrooms nationwide to process an application for a Hyundai car to discover Hyundai’s Brilliant Moment.”

  • Why Diamond Bank lent N75b to MSMEs, by Otti

    Why Diamond Bank lent N75b to MSMEs, by Otti

    Diamond bank has lent over N75 billion to the Micro and Medium Scale Enterprises (MSMEs), the Managing Director of Diamond Bank Plc, Dr. Alex Otti has said, explaining that the bank has continuously focused on small businesses in its portfolio lending because those businesses help to create jobs in the economy.

    Otti, who spoke during the just concluded International Monetary Fund/World Bank conference in Washington DC, on the topic, ‘Beyond 2015: Pathways to Addressing Africa’s Unemployment Challenge,’ said MSMEs, are better placed to create and provide jobs and boost the Gross Domestic Product (GDP) than the multinationals in our midst.

    “That is what we have started doing in Diamond Bank, having a change in mindset. Basically if we look at your business, your cash flow and everything and we think the business can pay itself, we lend the money,” he said, adding, “we have found out we are not losing money by doing that, instead we are creating jobs and opportunity for people, and by doing that, we have over N75billion in the hands of MSMEs.”

    He said if you look at it critically, about 99.7 per cent of every business will qualify as MSMEs, meaning that is about 99 per cent of the Gross Domestic Product (GDP). He said In India, 90 per cent of the GDP is accounted for by the MSMEs, “ but you find out that the big businesses that we are talking about, like MTN, Chevron, Shell, they may be big in their numbers, but may not generate the kind of employment that will take our people out of the streets, stating that apart from Uganda, every other African country is under the scourge of unemployment.

    He warned that if nothing was done, the development could result in dire consequences for the Continent. “People easily become tools in the hands of people who use them because they are unemployed, and that is why you see a young person tie a bomb around his waist and blow himself up, because he looks at himself and doesn’t see a future. We have a collective responsibility to support every initiative that will create jobs and employment for people.”

    Otti who made his presentation alongside former U.S Ambassador to Nigeria, Dr. Robin Renee Sanders, among others, said virtually all the countries in Africa have high unemployment rate. “Nigeria has over 24 per cent unemployment rate, South Africa has over 26 per cent, while Congo has over 50.6 per cent, wih the exception of Uganda which has four per cent. When compared with other countries, India has 3.5 per cent with a population of over 1.3billion people, and China has four per cent, with a population of over two billion people. So its incredible that those people we are comparing ourselves with have four per cent and we have over 24 per cent, and you see America and the UK talking of unemployment rate of over seven per cent, so it is a disaster that is waiting to happen., and the earlier we addressed it the better,” he added.

    He said despite the challenges associated with financing small businesses, the risks are minimal, urging that financial institutions should have a paradigm shift away from insisting on provision of collaterals to engaging the MSMEs to develop their businesses and generate bankable products. To achieve this, he said Diamond Bank has lined up a series of engagements, involving experts and the World Bank Group to raise and nurture MSMEs.

  • Diamond Bank pledges more support for MSME

    Diamond Bank Plc has reiterated its resolve to continue to encourage entrepreneurs in the micro, small and medium scale enterprises (MSME) sector of the economy.

    In a statement, Head, MSME Propositions of Diamond Bank, Mr. Chima Nnadozie, said in Abuja, the Federal Capital Territory (FCT) while addressing participants at the 34th Diamond BusinessXpress Enterprise Series.

    Nnadozie noted that the purpose of the seminar, which is being hosted across the country was to support owners of MSME grow their businesses through capacity building.

    He disclosed that the bank is supporting the SMEs with the realisation that the wealth of a nation is directly connected to the level of entrepreneurship in that nation.

    “We are supporting the growth of SMEs because we recognise that the future of this nation lies in the hands of entrepreneurs, so any energy expended in building up that sector cannot be wasted. It is something that is going to benefit the economy in years to come,” he said.

    Nnadozie noted that the business express seminar is a complete package of everything a bank could provide to a small business to enable it grow.

    He explained that for MSMEs to attract loans from the bank, the entrepreneur should have an account with the bank, invest in the business and have a location from which it operates. He added that collateral security which used to be a big issue in loan consideration and approval was no longer the case.