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Tag: Diamond Bank

  • Diamond Bank partners SME100 to boost MSMEs’ capacity

    Diamond Bank partners SME100 to boost MSMEs’ capacity

    As part of its commitment to building and supporting economic growth and development in the country, Diamond Bank, in partnership with SME100, has rolled out strategic capacity development programmes that would boost the productive strength of micro, small and medium scale enterprises, MSMEs.

    The bank’s Chief Executive Officer, Uzoma Dozie, stated at a networking event, which held recently in Lagos for MSME operators and stakeholders, that the sector holds the key to rapid economic growth, pointing that the adoption of technology in structuring their businesses is the surest way to business stability and predictable breakthrough.

    Speaking on the topic: “The Age of Digital Disruption; Leveraging Technology for Business Growth,” Dozie in his highly engaging session, noted that the need for small businesses to adopt technology in their processes cannot be overemphasised, stressing that technology stimulates productivity while saving time and energy.

    “The future of Africa is digital, and technology creates opportunities for the acquisition of useful skills and this should be embraced by all business owners. Business owners should have a platform that will enable them engage their customers from a conversational to a marketing perspective”, Dozie stated.

  • Diamond Bank upgrades ATMs

    Diamond Bank Plc has raised the stakes in digital electronic banking in Nigeria with its upgraded automatic teller machines that enables its over 10 million customers make multiple business and financial transactions with ease.

    With the enhanced ATMs located across its branches and operational regions in the country, the bank’s customers can  conduct their financial transactions in a secure, fast and convenient way. Customers can  also deposit cash, transfer funds, pay utility bills and perform other cashless transactions. Even those who do not own any bank account can also receive cash using Diamond Bank ATMs, the bank said.

    According to the bank’s Chief EWxecutive Officer (CEO), Uzoma Dozie, the upgraded ATM “is the sweetest ATM on the planet”, and offers more than just banking.

    He said the new ATM features financial services,which make banking convenient, exciting and unforgettable.

    He explained that the ATM has been upgraded to allow users make, among other services, cash deposit, funds transfer, payment of utility bills, cheque cancellation, and check account balance.

    The bank’s Head, Corporate Communications, Ayona Trimnell, explained that with the introduction of the upgraded ATMs, the lender has not only elevated and made banking more exciting, but has also transferred the services from the traditional banking hall to locations that enables customers perform full banking anytime.

    “The new ATM, ultimately, dissolves the walls in the banking hall that restricts banking services to only in the day. Customers’time is very precious; we are very conscious of this, which is why we have upgraded our ATM; allowing our customers experience an exciting, fast and reliable banking services even when the doors to the baking halls have closed,” Ayona stated.

    She added that with an ATM card, a customer can do many transactions, unlike when they using the teller.

  • NLC to shut banks for sacking workers

    NLC to shut banks for sacking workers

    The Nigeria Labour Congress (NLC) on Wednesday threatened to shut down the six banks that recently sacked their workers, giving the affected banks two weeks ultimatum to recall the sacked workers and allow unionization.

    The workers’ sack has already pitched labour against employers of labour in the country with the umbrella body of the employers, the Nigeria Employers Consultative Assembly, saying the government has no right to ask the banks not to sack workers.

    Labour on its part threatened to picket the banks if they fail to halt the mass sack of workers, accusing them of not allowing unionization and reneging on the principles of collective bargaining.

    In a letter to the management of the six banks and signed by its Deputy  General Secretary, Chris Uyot, the NLC said  labour will be forced to close the banks and their branches nationwide if they fail to recall the affected workers.

    The affected banks are – Fidelity Bank, Diamond Bank, First City Monument Bank, First Bank, Ecobank and Skye Bank.

    The letter to one of the affected banks management reads: “I have been directed to inform you that, it has been brought to our notice by our affiliate union, the National Union of Banks, Insurance, and Financial Institutions Employees (NUBIFIE) that your bank is one of those that have arbitrarily sacked a large number of workers in recent times contrary to laid down procedures and the country’s extant labour laws.

    “Also, of concern has been that these blatant retrenchments were carried out without recourse to several correspondence, including letters and circulars sent to you by the union to retrace your steps in line with best practices in labour relations and laws of the land.

    “By this letter, we are giving your bank 14 days  ultimatum commencing  from Thursday, 16th June, 2016 to recall all the sacked workers or face industrial action, which  may include ensuring that your bank and all its outlets are closed for business nationwide. While looking forward to your honouring our request, please, accept our goodwill and best regards.”

  • Diamond Bank challenges teenagers

    Diamond Bank challenges teenagers

    Diamond Bank has thrown open an essay writing competition, challenging young people from early teens to visualize the future and creatively work to bring their aspirations to reality.

    Apart from inspiring creativity and productivity, the bank said in a release, that this year’s Diamond Cool-Teens Essay Competition also aims at helping teenagers build a healthy savings culture, prudent expenditure profile and rewarding investment character.

    Speaking on the importance of the essay writing competition in helping to drive financial inclusion among teenagers, the Head Corporate Communication, Ayona Aguele-Trimnell, said Diamond Bank is very passionate about the financial awareness and the financial future of teenagers, pointing that this year’s essay title: ‘how my Lenovo Tablet will help me achieve my dreams,’ was carefully chosen to enable participants align their thought flows with how they could use what they have to achieve their dreams in life.

    She said: “We are very passionate about young people, how they think about money and how to achieve their dreams in life. Knowing this, the Bank has created each product segment that would help bring out the best in them. As a highly techie Bank, we are very excited to inspire and reward our teenage customers and potential teenage customers with all the advantages that mobile technology has to offer in banking transactions”.

    The Diamond Cool-Teens Essay Competition is one of the ways the Bank inspire teenagers through the Diamond Cool-Teens Account.

    The Bank’s Head of Consumer Banking, Aisha Ahmad, stated that the reason for developing the product for teenagers is basically to enable them be among the banking community and know that they have a right to start early to chart healthy financial courses in life.

  • Diamond Bank loses N35.7b to bad loans

    Diamond Bank loses N35.7b to bad loans

    •CEO under pressure to deliver better returns

    Diamond Bank Plc has reported after-tax loss of N9.9 billion, driven by 206 per cent year-on-year rise in loan loss provision to N35.7 billion, in the fourth quarter of last year.

    Analysts at FBN Quest, an investment and research firm, said although pre-provision profit grew by eight per cent, while operating expenses declined by 17 per cent, the negative on the provisions line proved more significant and led to a pre-tax loss of N11.5 billion.

    The result, already published on the Nigeria Stock Exchange (NSE), showed that funding income fell by 10 per cent year-on-year. The pre-provision profits grew by 39 per cent quarter-on-quarter, driven by the strong growth (212 per cent) in other income.

    On a full year, 2015 basis, profit before tax fell by 75 per cent year-on-year, largely driven by a 109 per cent rise in loan loss provisions to N55.2 billion. The analysts said the decline on the profit after tax line narrowed to 69 per cent due to a positive result of N2.2 billion in other comprehensive income.

    “Diamond Bank’s results imply a Return on Average Equity (ROAE) of 3.7 per cent. This ranks among the lowest within our universe of bank stocks. Given the weak set of results and the year-on-year decline on the funding income line, we would expect the line to be one of the focal points of discussions on the bank’s conference call. We also expect the impairments and cost of risk to come under some scrutiny,” the analysts said.

    The analysts also expressed concerns that the lender’s asset quality are likely to linger.

    Afrinvest West Africa Plc’s report on the bank’s fiscal year 2015 and first quarter 2016 showed that while gross earnings growth slowed to record low, N55.2 billion, credit impairment charges also led to a 77.8 per cent decline in net income. This was triggered by huge exposure of loan portfolio to Oil & Gas (29 per cent) and General Commerce (20 per cent), which accounted for 13 per cent and 42 per cent of non-performing loans respectively as at nine-month results.

    The bank’s 2015 result was weakened by asset quality deterioration, which translated into higher cost of risk (CoR) ratio, which increased to 6.7 per cent from 2.4 per cent in prior year, as impairment charges jumped by 109.2 per cent. The bank’s shares have declined by 35.2 per cent year-to-date, worse than the 13.4 per cent return on the All Share Index.

    The result, analysts said, put the bank’s CEO, Uzoma Dozie, on the hot seat as he struggles to keep the mid-tier lender profitable in the face of significant weakness in the assets quality traceable to poor credit risk management strategy.

  • Hyundai Motors, Diamond Bank renew vehicle finance scheme

    Hyundai Motors, Diamond Bank renew vehicle finance scheme

    Hyundai Motors Nigeria Limited (HMNL) in collaboration with Diamond Bank PLC has launched a vehicle finance scheme to inspire prospective customers and fleet buyers to buy precision engineered and affordably priced made-in-Nigeria Hyundai vehicles.

    The scheme which is ongoing is designed to encourage local patrons to own and drive Hyundai vehicles, using convenient bank credit with low interest rates from 14 per cent without commitment and management fees.

    Announcing the scheme in Lagos, the duo of Hyundai Motors Nigeria, manufacturers and distributors of Hyundai vehicles and Diamond Bank Plc explained that the scheme has convenient monthly repayment tenor between 12 and 36 months, depending on the customer’s payment option.

    While also adding that a comprehensive insurance of 3.5 per cent of the vehicle cost will be borne by the customer, the facilitators of the scheme said customers would in addition be offered free registration, free service for six months or 10,000kms and five years or 100,000kms (whichever is first).

    Both establishments brokered this agreement in Lagos at the launch of the scheme aimed at easing challenges associated with accessing low interest bank credit to procure choice cars.

    “The credit initiative is a seamless plan for desiring patrons and fleet managers to access low interest bank credit for the procurement of discounted Hyundai vehicles without necessarily paying commitment and management fees,” the duo explained.

    Hyundai Motors head of sales and marketing Jatin Nadkarni said: “The joint credit initiative is in line with Hyundai’s strategy and direction of making vehicle acquisition a seamless experience and essentially assists prospective customers to buy new Hyundai vehicles and experience Hyundai inspiring technology.”

    The offer which can accessed in all Hyundai Nigeria Limited accredited dealers nationwide includes select Hyundai models like Hyundai Accent 1.4/1.6litre, Grand Xcent & i10 1.2litre sedans, Azera 2.4litre, Creta 1.6litre and Santa Fe 2.4litre & 3.3litre variants.

    Nadkarni said the offer was intended to ease vehicle acquisition and assist customers including those without functional account with Diamond Bank to access the facility.

    “What we are simply doing is to help prospective buyers starve-off the burden of sourcing funds in one fell-swoop to buy a new car. You can now walk into any Diamond Bank branch to apply for credit to buy your choice car and thereafter, pay at your convenience,” Mr. Nadkarni affirmed.

  • Diamond Bank optimistic amidst declining performance

    Diamond Bank optimistic amidst declining performance

    Diamond Bank has assured shareholders and other stakeholders that ongoing initiatives and strategies would cushion the impact of macroeconomic and industry headwinds and sustain growth of the bank in the years ahead.

    Chief Executive Officer, Diamond Bank Plc, Mr. Uzoma Dozie, while reviewing the performance of the bank in 2015 and the first quarter of the year said there were reassuring signs that new strategy and initiatives to reduce costs are proving successful and are reflected in certain financial indicators.

    “Quarter on quarter, costs came in lower and as incremental measures are put in place, the benefits will be magnified. By taking the first steps to reconfigure the operating structure of the bank we have deployed more resources to provide improved services to customers and having done this, we are optimistic about performance in the quarters ahead,” Dozie said.

    Dozie outlined the outlook of the bank against the background of declines in performance in 2015 and first quarter 2016. Key extracts of the audited accounts and report of Diamond Bank for the year ended December 31, 2015 showed that gross earnings grew from N208.4 billion in 2014 to N217.09 billion in 2015. Profit before tax however slumped to N7.09 billion in 2015 as against N28.10 billion in 2014. After taxes, net profit declined from N25.49 billion to N5.66 billion. Earnings per share thus dropped from N1.43 to 23 kobo.

    In the first quarter ended March 31, 2016, Diamond Bank’s gross earnings dropped to N35.71 billion as against N40.49 billion recorded in comparable period of 2015. Profit after tax also declined from N7.17 billion in first quarter 2015 to N5.76 billion in first quarter 2016.

    Dozie said the bank will continue to implement strategies that promote sustainable growth and profitability in the long term.

    “Although the economic challenges witnessed in 2015 did not abate in the first quarter of 2016, our streams of income remained resilient and considerable growth was recorded in non-interest revenue, which provides comfort about the sustainability of planned growth from this stream,” Dozie said.

     

     

     

    He noted that the first quarter of 2016 was marked by persisting difficulties in the wider economy that continue to have an impact on the banking sector, adding that Diamond Bank has continued a diligent implementation of its focus on curtailing cost, resulting in a 2.8 per cent reduction of operating costs when compared to the same period last year.

    “Our projection of the macro conditions and other external factors for the rest of the year is that these will remain challenging, and it has led to higher impairment charges than for the same period in 2015. This very conservative approach to managing our loan book assures of its quality in the long run and in general should deliver the numbers that are consistent with our long term plans,” Dozie said.

    He outlined that as part of the strategic roadmap to a sustainable growth and profitability, the bank has continued to introduce aggressive innovations, enhanced customer friendly services, and retail banking strategy that will enable it focus on driving non-interest income and strengthen explored opportunities to grow its market share.

    He assured that the bank is better positioned for the future as management expects to see improved financial performance in the rest of the business year.

     

  • Diamond Bank takes lead in agro-lending to women farmers

    Diamond Bank takes lead in agro-lending to women farmers

    In the last five years, agriculture funding by Nigerian banks has more than doubled. Several banks are presently lending to their customers involved in agriculture under several schemes under the auspices of the Central Bank of Nigeria (CBN). These loans are for new investments and expansion of commercial agricultural enterprises.

    In 2010, Diamond Bank made “a measured” entry into financing the agriculture sector by engaging an international consulting firm to assess the risks and opportunities across all agricultural value chains of crops and livestock of economic importance in Nigeria. The outcome formed the basis for setting up the bank’s agrifinance desk ahead of the CBN’s directive to all commercial banks to set up specialized desks focused on lending to agriculture.

    Diamond Bank adopts a commercial approach to lending to agribusinesses focusing on gaining market share that follows the main investment trends; non-oil exports, import substitution, agro-processing, retailing and engaging in partnerships with catalyst agencies to develop markets and specific value chain financing products.

    Consequently, the bank has provided improved access to finance through key considerations into its pricing, products, underwriting processes and marketing strategies with more than N100 billion disbursed to over 400 agribusinesses across the various nodes of the agricultural value chain in the last five years.

    Head, AgricFinance, Diamond Bank, Lois Sankey, stated that the bank is very passionate about growing and driving financial inclusion through proven agricultural value chain financing models especially in the rural areas.

    “The programme we are currently working on, the Rice Anchor Borrower Programme has direct impact on financial inclusion and rural financing and we have N2.5 billion as portfolio exposure appetite to this programme alone. That is a lot of commitment considering that the cost of production per hectare is a mere N178, 000” Sankey stated.

    According to her, Diamond Bank is leveraging its partnership with USAIDMARKETS2 and other agencies on the project to support and Improve capacity and livelihoods of small holder rice farmers in target states across Nigeria.

     

    Agric finance milestones  

    Some of the major milestones in Agrifinancing at Diamond Bank includes signing of $33 million Agrifinance, two years Agric Technical Assistance programme with International Finance Corporation (IFC), targeting 2000 small holder farmers and $33 million small holder loans; training of 60 key members of staff along the agriculture value chain within the bank in partnership with USAIDMARKETS II Programme, engagement with Africa Cocoa Inputs Finance pilot with Technoserve. More than N5 billion has been disbursed to 15 projects under CBN’s Commercial Agriculture Credit Scheme, active participation in other  previous and on-going CBN and Federal Government intervention programmes and  working to support  about  750 small holder rice farmers in Benue state  under the Rice Anchor Borrower Scheme with MIKAP Ltd.

     

    Focus on women farmers

    According to the Food and Agriculture Organisation (FAO), women make up to 43 per cent of the agricultural labour force in developing countries. Research shows that on the average, their yield are about 20 percent to 30 percent lower than men because they have less access to land, improved seeds, equipment and most importantly finance and information.

    Diamond Bank in a strategic move is focusing on female farmers by providing free technical training and financial grants to rural women involved in agriculture. The initiative which is called Beta Life for Female Farmers is aimed at empowering female farmers across the 36 states of the country and reducing poverty level.

    Chief spokesperson, Diamond Bank, Ayona Trimnell, stated that the bank’s strategic move to help female farmers in the rural areas improve their crop yields and farming method is rooted on the fact that increased farm yield by women can significantly help in reducing the current food gap.

    “Women form a large pool of farmers in the country today and they contribute significantly in the food production basket. But they are hardly considered when measures for increased yields are being introduced by either the government or other investors. We believe that if women farmers are fortified with the necessary knowledge on how to improve their yields and have access to funds, they will do well and the food import bill will reduce significantly,” Ayona stated.

    According to her, the primary aim of the Diamond Bank female farmers’ project is to help engender improved quality of life for women farmers in Nigeria through business funding, education and technical support on agronomic practices and training on financial management.

    This intervention forms part of the bank’s Women’s Wealth and Well-being Initiative which has three main objectives including empowering women economically especially in the area of agric business, providing basic health care education and services to women in rural areas, leading to improved productivity, growth and value addition of women in the cassava value chain.

    The first phase of the project which commenced in 2014 involved training 200 women in Oyo and Ogun states on best agronomic practices. Other areas of the training and capacity building programme involves, access to credit-either for production or processing and financial advisory services, agricultural extension and research services; technical assistance on processing and access to markets and assisting the groups in inculcating a savings culture through the opening of BETA Savings for the targeted groups and group members.

    The project also aims at developing capacity and strengthening farmer organisations through the provision of improved inputs and mechanised farm equipment by the bank. These innovative processes is projected to enhance productivity, increase efficiency, improve the processes and entrench practical benefits for the selected women producers and their agri-businesses.

    The initiative will also facilitate access to information on best agronomy practices and access to markets through international organisations and research and development Institutions; open access to credit and sustainable financial management practices. Currently 200 women in cassava production and processing in Oyo and Ogun states have benefitted from the programme, which is still on-going with plans to replicate same model across the country in the next three years.

     

    Women farmer groups

    In its resolved bid to strengthen and improve the living standards of women farmers in rural areas in Nigeria, Diamond Bank as part of its CSR initiative trained and equipped the following farmer groups in Ondo and Oyo states.

    The farmer groups in Ondo include Agbajowo CMC Processing Group, located in Shagari village, Akure; Agbeloba Cassava Processing Group, Ile-Oluji Farm settlement; AduraAgbeagba Cassava Processing Group, Ile-Oluji.

    Others in Ondo State include Oluwapawopa Cassava Processing Group, Owo; Okonilewo Cassava FUG Cooperative Society, in Igba.

    In Oyo State, the farmer groups include, Onipepeye Cassava Processors Group, Ikulodi; AlaseGari Processing Group, Iseyin; Agbeloba Cassava Farmers Groups, Iganna; Agbelere Cassava Farmers Group, Fiditi and GarriGbayi Cassava Processing Group, Iseyin.

    With Federal Government’s resolve to diversify the economy, strengthen agriculture and increase its contribution to the GDP, it is obvious that Diamond Bank’s CSR initiative and partnership with female farmers will impact positively on local food production and attract many unemployed youth into farming, thereby reducing the high unemployment level in the country; and bridging the food supply gap.

    Undoubtedly, Nigeria is endowed with abundant natural resources such as solid minerals, oil and gas as well as arable land for agriculture, among others. And, despite being the seventh most populous country in the world with abundant youth workforce, reports show rising youth unemployment and only about 40 percent of Nigeria’s arable land is being cultivated, thus leading to food supply deficit and huge food import bill.

    But agricultural development in the country has remained sluggish and agrarian, with farmers using crude implements and women being mostly hit with low farm yield, inability to access funds from financial institutions, limited access to land and lacking the requisite knowledge on how to improve yields in their farms.

  • Diamond Bank loses Executive Director

    The management of Diamond Bank has announced the passing away of one of its executive directors, Victor Ezenwoko.
    Victor was in charge of its Lagos and West Businesses until his demise on Friday, 25 March this year. He joined Diamond Bank in July 1997 as a start-up Branch Manager for Onitsha Bridgehead Branch and subsequently Branch Manager of Onitsha New Market Road Branch and Abuja Branch.
    He is survived by wife and children.

  • Libel suit: Dabiri-Erewa, Diamond Bank to settle out of court

    Libel suit: Dabiri-Erewa, Diamond Bank to settle out of court

    A former member of the House of Representatives Abike Dabiri-Erewa and Diamond Bank Plc have agreed to settle out of court a N500 million libel suit she instituted against the bank for its claim that she owed it N122 million.

    When the matter came up for hearing Thursday at a Lagos State High Court in Igbosere, the bank’s counsel, Mr. Chuka Agbu SAN, informed Justice Abdulfattah‎ Lawal that both parties were willing to settle the matter out of court.

    He admitted that the process of settlement had yet to begin and urged the court to adjourn the case so that the parties can explore this option.

    This claim was not controverted by the claimant’s counsel Mr. Ademola Fadipe.

    Justice Lawal granted his request and adjourned the matter till March 10, 2016, for report of settlement.

    Dabiri- Erewa had on August 6, 2015, filed a N500million suit ‎against Diamond Bank for publishing her name among a list of debtors who had failed to liquidate their debts.

    She also listed the Punch Newspapers Limited as the second defendant.

    The alleged malicious publication against Dabiri-Erewa was published by Punch through a paid advertorial and a news report.

    The former lawmaker instituted the N500m suit against the defendants jointly and severally as damages for the reputational injury she suffered, and another declaration that the publication, “which has no foundation in truth,” had defamed and injured her character and made her to suffer reputational damage.

    She asked for N3 million to be paid as professional fees to her solicitors, and an order directing the defendants separately and jointly to render a public apology to her in respect of the false publication.