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Tag: Diamond Bank

  • CBN okays Access, Diamond merger

    THE Central Bank of Nigeria (CBN) has given a “No Objection” nod to the merger plans of Access Bank Plc and Diamond Bank Plc, the boards of both banks said yesterday.

    The deal is expected to be completed in the first half of 2019. Transaction completion is subject to Access Bank and Diamond Bank obtaining shareholder and regulatory approvals (CBN, the Securities and Exchange Commission (SEC), the Federal High Court (FHC) and the National Pension Commission (PenCom).

    Following the signing of the Memorandum of Agreement and announcement of headline terms, which valued Diamond Bank at approximately N72.5 billion (about $200 million) and will see Diamond Bank shareholders receive N3.13 per share in cash and shares, Access Bank and Diamond Bank are announcing further details, including the rationale and benefits of the deal, the estimated cost synergies, the capital management plan and the timetable.

    The merger will form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries and 29 million clients.

    It will bring also together treasury, risk management and corporate banking expertise with strong retail and digital banking capabilities to create a financial institution operating across the full suite of products for all customer segments.

    The transaction will be concluded via Scheme of Merger following Access Bank and Diamond Bank Court Ordered Meetings billed for March 2019 to approve terms. Subject to shareholder approvals, final approvals by SEC, CBN and PenCom regulatory and FHC sanction are expected before the end of first half of next year.

    Cost of synergies conservatively estimated at N30 billion per annum, pre-tax, to be fully realised within three years post-completion.

    Further revenue and balance sheet synergies are to be evaluated by joint implementation committee.

    The pro-forma capital position of the merged bank will be in full compliance with regulatory requirements for significant financial institutions with an international banking presence.

    However, in order to meet international standards of best practice and ensure a robust capital buffer, both banks expect to achieve a post-completion Capital Adequacy Ratio (“CAR”) of 20 per cent at the bank level and 22 per cent at the group level.

    The key elements are – Diamond Bank to take further impairments in line with IFRS9, to be reflected in year end 2018 results.

    Access Bank has finalised terms and obtained regulatory approvals for a Tier II capital issuance, which will raise $250 million, available for drawdown in January 2019.

    Commenting on the proposed merger, Access Bank’s Chief Executive Officer (CEO) Herbert Wigwe said: “I am delighted to announce that we have received the necessary regulatory approvals to pursue a merger with Diamond Bank, one of Nigeria’s foremost digital and retail banks, subject to final regulatory and shareholder approvals.

    “The combination of our two businesses will create the largest retail bank in Africa by customer base and a very significant player in the Nigerian market.  This is a huge step towards the delivery of our goal to bring the power of banking to millions of people across Nigeria and an exciting transaction for Access Bank and Diamond Bank’s customers, staff and shareholders.

    “We have a clear plan to maintain our capital strength and are announcing today decisive steps by both banks to ensure their financial stability throughout the process.

    “The overall outcome will be a stable institution with an extremely strong capital adequacy ratio of more than 20 per cent following completion of the merger, which will be a leading competitor in all the markets in which it operates.”

    Diamond Bank’s CEO Uzoma Dozie said: “The merger is positive for all of Diamond Bank stakeholders, including customers, employees and shareholders. In particular, customers will benefit significantly through the unrivalled combination of the best of Diamond Bank’s retail and digital leadership with the size of Access Bank’s balance sheet, corporate names and geographical reach.

    “In reaching this decision, the shared passion for leveraging Nigeria’s youthful and entrepreneurial talent, and a commitment to better outcomes through financial inclusion have convinced us that this is the right combination.

  • Diamond Bank’s merger: Access Bank increases capital raising to $457m

    Access Bank Plc could raise up to $457 million or about N165.6 billion in new debt and equities capital to support ongoing business combination with Diamond Bank Plc. Access Bank will be the post-merger entity and its Group Managing Director, Mr Herbet Wigwe, will remain the chief executive of the enlarged bank.

    At a joint media briefing in Lagos yesterday to outline key details of the business combination, Access Bank and Diamond Bank said the business combination was driven by value accretion and synergies, citing the potential to become Africa’s foremost financial institution.

    Access Bank said it has received regulatory approvals to raise up to $457 million, equivalent to about N165.58 billion, in tier 11 capital and equity funds to ensure that the post-merger entity has robust capital buffer in line with national and international requirements.

    Read also: Diamond Bank’s managers to go

    The capital raising includes a $250 million tier 11 capital and a $207 million rights issue. Both capital raisings are expected to be concluded in the first half of 2019, in time for the completion of the business combination, which is also scheduled for the end of first half 2019.

    In order to meet international standards of best practice and ensure a robust capital buffer, Access Bank and Diamond Bank have also jointly agreed a strategic capital management plan and expect to achieve a post-completion Capital Adequacy Ratio (CAR) of 20 per cent at the bank level and 22 per cent at the group level.

  • Diamond Bank confirms merger with Access Bank

    The board of Diamond Bank Plc on Monday finally announced its merger with Access Bank Plc expected to be completed in first half of 2019.

    The News Agency of Nigeria reports that both banks recently denied media reports of any merger.

    Mr Uzoma Dozie, the bank’s Chief Executive Officer, said in Lagos the board had selected Access Bank as the preferred bidder with respect to a potential merger of both banks.

    Dozie said the potential merger of the two banks would create Nigeria and Africa’s largest retail bank by customers.

    He added that the transaction to be completed in the first half of 2019 was in the best interest of all stakeholders.

    Dozie said the completion of the merger was subject to certain shareholder and regulatory approvals.

    “The proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger.

    “Based on the agreement reached by the boards of the two financial institutions, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising N1 per share in cash,” he said.

    Dozie also said the transaction would include the allotment of two new Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the implementation date.

    “The offer represents a premium of 260 per cent to the closing market price of 87k per share of Diamond Bank on the Nigerian Stock Exchange (NSE) as of Dec. 13, 2018, the date of the final binding offer,” Dozie said.

    He said the bank’s shares would be absorbed into Access Bank at the completion of the merger and Diamond Bank would cease to exist under Nigerian law.

    Read Also: Police kill two kidnap, robbery suspects in Sokoto

    “The current listing of Diamond Bank’s shares on the NSE and the listing of Diamond Bank’s global depositary receipts on the London Stock Exchange will be cancelled, upon the merger becoming effective,” he added.

    Dozie said the proposed combination with Access Bank would create one of Africa’s leading financial institutions.

    “The board of Diamond Bank believes that the proposed combination of the two operations provides an exciting prospect for all stakeholders in both businesses, he said.

    Mr Herbert Wigwe, Access Bank the Chief Executive Officer, said: “Access Bank has a strong track record of acquisition and integration and has a clear growth strategy.

    “Access Bank and Diamond Bank have complementary operations and similar values, and a merger with Diamond Bank with its leadership in digital and mobile-led retail banking’

    “This could accelerate our strategy as a significant corporate and retail bank in Nigeria and a Pan-African financial services champion,” said Wigwe.

  • Diamond Bank rewards customers with car, N59m

    Diamond Bank Plc at the weekend rewarded 1,016 customers with about N59 million in cash and a brand new car during its 2018 3rd DiamondXtra quarterly draw.

    The total of 1,016 winners emerged all over the country as one of the bank customers- Uche Ann Danniel won the star prize of Hyundai accent brand new car and another customer emerged the winner of education grant allowance of N100,000 every month for the period of five years.

    Also N1 million rent for a year support was given to another customer, 45 customers were rewarded with N500,000 each, 300 customers won N100,000 each, another set of 300 customers won N50,000 each while another five customers won N 20,000 each.

    Head, Consumer Liability Products, Diamond Bank Plc, Mr Osita Ede, said that the draw was aimed at rewarding customers for their loyalty to the bank.

    Osita urged the bank customers to be part of the promising reward system by visiting the nearest Diamond Bank branch to open DiamondXtra account and save at least N5,000 to stand a chance of winning from multiple increments in their savings plan of  N5,000.

    He added that the reward scheme is open to new and existing customers with the DiamondXtra account.

  • CBN okays Diamond Bank as a national bank

    The Central Bank of Nigeria (CBN) has approved the change in the licence of Diamond Bank Plc from an international bank to a national bank with immediate effect. The approval is, however, subject to the conclusion of the sale of Diamond Bank United Kingdom.

    The move follows Diamond Bank’s decision to sell its international operations, which included the disposal of its West African Subsidiary in 2017 and Diamond Bank UK, the sale of which is in its final stages. With this approval, the bank will cease to operate as an international bank.

    Diamond Bank at the weekend indicated that the re-licensing as a national bank supports its objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market, and economy as a whole.

    According to the bank, the change to national bank status also enables the bank to maintain a lower minimum capital requirement of 10 per cent as against 15 per cent required for international banks. This creates room for the bank to deploy more capital for stronger growth in the quarters ahead through additional investment in technology platforms, customer acquisition and expansion of loans to the critical sectors of the economy.

    The bank’s Chief Executive Officer, Mr. Uzoma Dozie said the move to a national banking license marks a continuation of the bank’s strategy to focus on Nigeria’s significant fundamental trends, including a large underbanked population and Africa’s biggest economy.

    According to him, by focusing and optimising its resources towards Nigeria and the priority area of retail banking, the bank will be better positioned for longer term growth and greater profitability.

    “The reduction in minimum capital requirement also increases our capacity to expand the quantum of business and product services we can offer consumers, as well as representing a key step in strengthening our financial position,” Dozie said.

    He noted that this development, however, does not affect the bank’s ability to offer services to its clients in international locations.

    According to the bank, with focus on its domestic business being priority, the bank also intends to pay down in full, the Eurobond loan of $200 million at maturity in May 2019. There will be no refinancing of the loan as the intent to pay down with foreign exchange generated from its internal operations, a reflection of the solidity of its operations and funds flow in the last few years

    The bank pointed out that top quality services to international customers will continue through its digital channels and network of correspondence banks.

    Meanwhile, Diamond Bank has formally introduced its premium lifestyle subscription service, XclusivePlus, for its affluent banking customers.

    Speaking on the product, Head, Consumer Banking, Diamond Bank Plc, Kari Tukur, said the bank has seen a rise in customer spend in the past few years for luxury travel, luxury experiences and luxury products among the emerging affluent client segment.

    She said the new product is well positioned to further enhance customers’ lifestyles and provide them with the most satisfying rewards.

    According to her, XclusivePlus membership comes with an automatic card upgrade to the Diamond Visa signature naira debit card.

    “Diamond Bank is the first bank in Nigeria to go to market with this card. This is a naira card with higher spend limits and enabled for international spend. With this card, our customer will enjoy lots of world class travel and lifestyle benefits such as free access to over 800 Premium airport lounges globally, great discounts and VIP treatment at luxury hotels around the world, free travel insurance cover for them and their family for medical emergencies, lost luggage, flight cancellation and much more anytime they travel. This insurance is also valid for foreign visa applications,” Tukur said.

    She added that there are also benefits closer to home, including free cinema tickets all year around for the movie lovers, free premium events tickets such as concerts, comedy shows and art exhibitions and lots of great offers and discounts from a wide range of merchants across the country ranging from restaurants, bars, hotels, shopping and much more

    XclusivePlus subscribers are also invited to various seminars, conferences and round table discussions covering a wide range of topics such as wealth management & investment, economic outlook, financial planning, assess to finance and lots more. These events will give them the opportunity to acquire knowledge from industry experts and network with like minds.

    “With the XclusivePlus, Diamond Bank is always available to the customer wherever and whenever you need us through the mobile app. With over three million users, the mobile app is loaded with exciting features such as local and foreign currency transfers, bill payments, airtime top-up, esusu, events and movie tickets purchase,” Tukur said.

  • Diamond Bank launches XclusivePlus

    Diamond Bank has formally introduced its premium lifestyle subscription service, XclusivePlus, for its affluent banking customers.

    Speaking on the product, Head, Consumer Banking, Diamond Bank Plc, Kari Tukur, said the bank has seen a rise in customer spend in the past few years for luxury travel, luxury experiences and luxury products among the emerging affluent client segment.

    She said the new product is well positioned to further enhance customers’ lifestyles and provide them with the most satisfying rewards.

    According to her, XclusivePlus membership comes with an automatic card upgrade to the Diamond Visa signature naira debit card.

    “Diamond Bank is the first bank in Nigeria to go to market with this card. This is a naira card with higher spend limits and enabled for international spend. With this card, our customer will enjoy lots of world class travel and lifestyle benefits such as free access to over 800 Premium airport lounges globally, great discounts and VIP treatment at luxury hotels around the world, free travel insurance cover for them and their family for medical emergencies, lost luggage, flight cancellation and much more anytime they travel. This insurance is also valid for foreign visa applications,” Tukur said.

    She added that there are also benefits closer to home, including free cinema tickets all year around for the movie lovers, free premium events tickets such as concerts, comedy shows and art exhibitions and lots of great offers and discounts from a wide range of merchants across the country ranging from restaurants, bars, hotels, shopping and much more

    XclusivePlus subscribers are also invited to various seminars, conferences and round table discussions covering a wide range of topics such as wealth management & investment, economic outlook, financial planning, assess to finance and lots more.

     

     

  • Diamond Bank leads national drive for financial inclusion

    The Central Bank of Nigeria (CBN), under its National Financial Inclusion Strategy (NFIS), in 2012 set a target of financial inclusion rate of 80 per cent for Nigeria’s adult population by 2020. The CBN initiated the move, actively pushing for more citizens to enjoy access to formal financial services and thereby increase their chances of financial empowerment. The initiative by the apex bank perfectly fitted the banking philosophy of Diamond Bank, which focuses on financial accessibility and availability.

    Diamond Bank, since its inception in 1990, has always been about retail banking, financial inclusion, and catering to the finances of ordinary people. Currently, the bank leads others in financial inclusion by wide margin due to its innovative efforts, growing the market share by offering financial services to 10 million previously unbanked individuals. In recognition of its efforts, the bank was voted “Best Bank for Financial Inclusion” in Nigeria in 2017.

    Diamond Bank has targeted campaigns for Nigerians living in remote parts of the country. One of the campaigns, exclusively targeted at financially-excluded people, helps to put the unbanked population in perspective. While so much has been said about financial inclusion, many people often don’t know what people who need to be banked look like. Diamond Bank partnered African telecommunications giant- MTN Nigeria to roll out its hybrid savings account, Diamond Yello account. This service combines both financial and telecommunications functions.

    Diamond Bank was one of the first Nigerian banks to employ the use of the Unstructured Supplementary Service Data (USSD) for its Yello account, allowing users to open Diamond Bank’s accounts and carry out financial transactions on their mobile phones, without data or credit. Since its launch in 2014, before commercial banks were forced into retail banking, the Yello account has been able to register more than nine million bank accounts, consisting mostly of young people, and women-the demographic most hindered from financial inclusion.

    The Diamond Yello account has solved that conundrum in Nigeria in Northern Nigeria by bringing on board many who have never owned a bank account. Presently, Diamond Bank controls a large share of USSD transaction volume in Nigeria with 40 per cent.

     

     

  • Access, Diamond stocks up, down over ‘talks’

    Diamond Bank stocks fell 9.38 per cent to N1.17 at the Nigeria Stock Exchange (NSE) yesterday.

    Access Bank’s rose 1.30 per cent to close at N7.80. The entire banking industry index dropped by 1.06 per cent despite both lenders refuting the report that they were discussing a likely acquisition.

    This newspaper yesterday reported plans by Access Bank to take over Diamond Bank within the first quarter of next year.

    Diamond Bank Plc yesterday denied the report.

    In a statement, the bank described the  talks as a rumour.

    Both lenders have notified the NSE and the public that they were not in any merger or acquisition talks.

    But speaking on the development, a former General Manager at Diamond Bank Plc, Richard Obire, said although both lenders may have denied possible merger or acquisition plans, the possibility of it being true could not be foreclosed.

    “It is possible. They can deny it because it is not time for it to be made public, but that does not foreclose the possibility of it happening. Diamond Bank used to be a leading commercial bank, competing favourably with Zenith Bank and GTBank. But today, its (Diamond Bank’s ) performance has dropped,” he said.

    The banks, in separate statements to the exchange, denied the alleged merger or acquisition talks.

    Diamond Bank’s Company Secretary Uzoma Uja said it was not in discussion with any financial institution at the moment on any form of merger or acquisition.

    Uja said the attention of Diamond Bank had been drawn to the rumour in the media stating that the bank was purportedly in discussion with Access Bank to acquire the bank.

    “We wish to state categorically that the bank is not in discussion with any financial institution at the moment on any form of merger or acquisition.

    “We trust that the above clarifies the position of the bank with regards to the rumour on the various media platforms,” Uja said.

    Also, Company Secretary, Access Bank, Sunday Ekwuochi said the bank had not entered into any such discussion with Diamond Bank or any other institution.

    “As a publicly quoted company built on best practice, the bank is fully cognisant of its disclosure obligations in respect of any such corporate action and will always discharge its obligations in the most professional manner.

    “Consequently, any statement regarding any such corporate action that is not issued by the bank should be disregarded,” Ekwuochi said.

    The Nation learnt that the development leading to the impending acquisition was triggered by Diamond Bank directors who approached Access Bank for intervention in a bid to stave off a possible regulatory intervention that could lead to the withdrawal of the lender’s operating licence in the light of the bank’s depleting capital adequacy ratio on account of a huge Non Performing Loans (NPLs) portfolio put at over N150 billion.

    The Nation gathered that Access Bank directors examined the proposal and, after series of meetings and evaluations, accepted to acquire the entity. However, the agreement so far reached, it was understood, will not alter the name of Access Bank nor its management structure.

    “It’s a complete acquisition and not a merger,” a source, who asked not to be identified, but who is familiar with the transaction, said, adding that one of the major considerations that swayed Access Bank’s directors in accepting the offer was the large branch network of the lender. “ It’s burgeoning NPLs, however, was of serious concern to Access Bank and almost becoming a disincentive, but it has been addressed,” the source added.

    Bloomberg reported that a major investor was in the process of injecting funds into Diamond Bank on condition that the CEO, Uzoma Dozie, exits his position. The report attributed to the Chairman, Seyi Bickersteth, has since been denied by the bank.

    Diamond is one of a number of smaller Nigerian lenders struggling to maintain a regulatory requirement for banks with international operations to have reserves of capital that cover at least 15 per cent of outstanding loans. The company’s ratio stood at 16.3 per cent at the end of September, the lender has said.

    Bloomberg report quoted Bickersteth saying the proposal was on condition that Chief Executive Officer Uzoma Dozie resigns, without naming the shareholder.

    Diamond’s biggest investor is U.S. private equity firm Carlyle Group LP, which declined to comment.

    The report further said the bank’s spokesman, Ezechinyere Anyanwu, declined to comment on whether there has been a recapitalization offer.

    Diamond is one of a number of smaller Nigerian lenders struggling to maintain a regulatory requirement for banks with international operations to have reserves of capital that cover at least 15 percent of outstanding loans. The company’s ratio stood at 16.3 percent at the

    end of September, the lender has said.

    Capital requirements became a concern for many Nigerian banks in 2016 after a contraction in the economy caused by an oil-price slump triggered a surge in non-performing loans. Standard & Poor’s on Tuesday cut Diamond Bank’s rating to CCC+/C from B-/B, citing pressure on capital and foreign-currency liquidity.

    Diamond has also discussed selling itself to a larger rival, but this plan was eventually rejected after a boardroom vote, Bickersteth said, declining to identify the potential acquirer.

    “The majority of us voted against” the takeover, he said. “The bank cannot be pushed into the hands of one suitor,” if it intends to get the best value for shareholders.

     

  • Talks on for Access Bank to acquire Diamond Bank

    Access Bank is set to add Diamond Bank’s portfolio to its assets in the next  few months, The Nation has learnt.

    Talks on the acquisition are on, according to sources,  who  said the fusion is set for  the first quarter of next year.

    It was gathered that both financial institutions have reached an agreement in broad terms on the acquisition. What is left is the valuation of assets, with a view to determining the level of compensation  and systems’ integration, the sources said, pleading not to be named because they are not allowed to talk to the media on the matter.

    It was learnt that the development leading to the impending acquisition was triggered by Diamond Bank directors who approached Access Bank  for intervention in a bid to stave off  a possible regulatory intervention that could lead to the withdrawal of the lender’s operating licence in the light of the bank’s depleting capital adequacy ratio  on account of a huge  Non Performing Loans (NPLs) portfolio put at over N150billion.

    The Nation gathered that Access Bank directors examined the proposal and,  after series of meetings and evaluations, accepted to acquire the entity. However, the agreement so far reached, it was understood, will not alter the name of Access Bank nor its management structure.

    “It’s a complete acquisition and not a merger,” a source, who asked not to be identified, but who is familiar with the transaction, said, adding that one of the major considerations that swayed Access Bank’s directors in accepting the offer was the large branch network of the lender. “ It’s burgeoning NPLs,  however,  was of serious concern to Access Bank and almost becoming a disincentive, but  it has been addressed,” the source added.

    It was also gathered that the CBN is well acquainted with the development. The regulator’s acquiescence to the deal was informed by the recent event that led to the liquidation of Skye Bank, and the apex bank not being disposed to following that route because of the huge cost implication that a bailout of Diamond Bank might require, encouraged the discussions, “and the regulator is pleased with the level of discussions so far.”

    “ The CBN encouraged the ongoing arrangement, given the fate that befell  the defunct Skye Bank a few months ago. The apex bank gave its consent  and approval for the actualisation of the marriage. ”

    The Nation learnt that the regulator’s un-alloyed support for the emerging entity followed its unpreparedness to commit any further huge funds for the rescue of any wavering bank.

    Bloomberg reported that a major investor was in the process of injecting funds into Diamond Bank  on condition that the CEO, Uzoma Dozie, exits his position. The report attributed to the Chairman, Seyi Bickersteth, has since been denied by the bank.

    Diamond is one of a number of smaller Nigerian lenders struggling to maintain a regulatory requirement for banks with international operations to have reserves of capital that cover at least 15 percent of outstanding loans. The company’s ratio stood at 16.3 percent at the end of September, the lender has said.

    The bank cut its full-year profit forecast by more than half on Tuesday after income from operations declined. It now expects profit before tax to reach 3.8 billion naira ($10.4 million), down from a previous target of 8 billion naira.

    The shares rose 2.5 percent on Wednesday, trading at 1.21 naira at the close in Lagos. The stock is down 19 percent this year, compared with a 12 percent fall on the NSE Banking 10 Index.

    Diamond Bank, in a statement, said contrary to media articles, “the Board wish to clarify that the company has not received an offer from an investor to inject cash. Further to the Company’s announcement of 26 October 2018, Diamond Bank and its Board of Directors continue to review all strategic options on a regular basis. Diamond Bank would also like to clarify it enjoys the support of its major shareholders, including The Carlyle Group and Kunoch Holdings who are, as ever, working in cooperation with the Board and management as appropriate to ensure the successful operation of its business in Africa’s most dynamic banking market.

    “Further to the announcement of 24 October 2018, Diamond Bank is in active discussions with regards to the appointment of  new non-executive directors to the Board and, subject to CBN approval, these will be announced in due course.” “Diamond Bank’s recent Third Quarter results published on October 26, 2018 show the business continues to execute its clearly articulated tech-led retail strategy despite headwinds in the Nigerian economy,” the bank stated.

  • Diamond Bank: no new major equity investor

    Diamond Bank Plc at the weekend debunked speculations in some quarters that a new core investor plans to inject equity capital into the commercial bank. The bank stated that its preferred option for its capital increase is an internal capital management programme.

    Some media reports, not The Nation, had reported that a new investor plans to take up major equity stake in the bank.

    In a regulatory filing at the Nigerian Stock Exchange (NSE) at the weekend, the bank stated that the bank was not in talk with any investor on equity capital injection.

    “Diamond Bank is not in talks with any party, global or otherwise, for any capital injection. While previous communication from the bank has highlighted a need to shore up the Bank’s Capital Adequacy Ratio (CAR), the preferred option is an internal capital management programme that has been explained in detail to analysts and investors,” the bank stated in the statement signed by Company Secretary and Legal Adviser, Diamond Bank, Uzoma Uja.

    The bank noted that while it recognises the need to expand its options in the short term, it has not entered into any discussions with any investor, adding that the investing public will be notified of any new development.

    Also, Diamond Bank at the weekend released its third quarter repzort for the period ended September 30, 2018, highlighting its strong focus on the Nigerian market, especially the retail sector through its technology led retail strategy to drive growth and position SMEs for competitiveness.

    The commercial banking group recorded gross earnings of N142.54 billion and pre and post tax profits of N3.08 billion and N1.65 billion respectively in third quarter 2018.

    The report showed that the bank’s retail strategy is quite rewarding as the bank recorded a landmark figure in the value of funds disbursement of over N1 billion to small business owners under the cash flow-based SME lending scheme in partnership with the Women’s World Banking (WWB), and this has earned the leading financial institution ranked among the first five SME customer bank in Nigeria in the KPMG customer service survey 2018.

    Despite the challenging trading environment, the bank’s contribution of non-interest income to profit increased by 10.81 per cent from N24.66 billion in third quarter 2018 to N27.32 billion in third quarter 2018 while Impairment charges dropped by 24.21 per cent from N33.21 billion to N25.17 billion.

    The bank’s retail and digital strategy has continued the expansion of financial inclusion programme with total number of banking agents rising to 70,052 in third quarter 2018 across Diamond Y’ello, BETA and CLOSA product lines. Apart from the disbursed N1 billion to Small and Medium Enterprises (SMEs), in partnership with Women’s World Banking as of September 30, 2018, the bank also Introduced SMEzone to the market – an information-sharing platform, aimed at positioning entrepreneurs for competitiveness while the sale of its UK subsidiary expected to be completed by year-end.