" />
Published On: Mon, Aug 15th, 2016

Diamond Bank might raise new capital, sell some assets — CEO

Diamond Bank is considering raising fresh capital and selling some assets in order to strengthen its capital base, its chief executive said on Wednesday.

Uzoma Dozie said the bank’s capital plan will ensure it meets all regulatory requirements both in the short term and in the future.

According to Reuters report, Diamond Bank’s capital adequacy ratio had fallen to 15.6 percent of assets by mid-year from 18.6 percent a year ago.

“We are doing a capital management plan and that will determine how much capital we want to raise, tenor and size,” Dozie told an analysts’ conference call.

“We don’t have any need to grow our branch network any more. We are also looking at some assets that we can dispose of and we are a long way into that,” he said.

Shares in the mid-tier lender, which has fallen 33 percent this year, were up 1.94 percent on Wednesday at 1.58 naira. The share price fell 59 percent last year.

The central bank shored up mid-tier lender Skye Bank this month with a loan and replaced its management after its capital fell below levels required by regulators and has been urging people not to panic about the banking system.

But pressure is building, with loan books – nearly half of them in dollars – hammered by a shrinking economy, a plunging currency and acute foreign exchange shortages in Africa’s biggest oil producing nation following the slump in oil prices.

The central bank has told lenders to set aside extra provisions against their dollar loans in the wake of the sharp fall in the naira since it floated the exchange rate in June.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Most Shared

Recent posts

  • CBN ruins Black Market business, says Gwadabe

    Central Bank of Nigeria (CBN’s) foreign exchange management policies have begun to put severe pressure on Nigeria’s parallel foreign currency market as ‘Black marketers’ begin to see their trading margins disappear. Indeed with more stable supply of forex and growing investor confidence on rising oil prices (currently at $74 per barrel) , the business of […]

  • Manufacturers groan despite improved bank liquidity

    By FELIX OLOYEDE Nigerian manufacturers are still credit-starved despite the improved liquidity of the banking sector. Although credit to the private sector has been rising, manufacturers have claimed that access to funds still pose a serious problem. Broad money in circulation increased 8.14 per cent to N2, 401.91 trillion in February 2018 compared to N2, […]

  • MAN, LCCI disagree over CFTA

    By UCHE CHRIS President Buhari seems to be coming under increasing pressure from both home and abroad over his refusal to sign the Continental Free Trade Area treaty last month at the meeting African Union Heads of states and government in Addis Ababa, Ethiopia. Also Nigerians particularly the business community are sharply divided over the […]

  • Gov. Wike: More garlands for Mr. Projects

    By OBINNA EZUGWU On Sunday April 15, 2018 at the Civic Centre, Victoria Island, Lagos, Rivers State governor, Nyesom Wike was the cynosure of all eyes as he stood firm and composed to the cheering of the audience at the capacity hall to receive the prestigious Zik Prize for good governance. It was indeed an […]

  • The Sterling Bank spreadsheet… an uppity lenders burden

    By TESLIM SHITTA-BEY Despite not stirring excitement in recent years, Sterling Bank Plc has run a recession gauntlet and come out looking marvelous. The bank in 2017 grew its gross earnings by slightly under twenty per cent to 19.79 per cent between 2016 and 2017.  The banks gross earnings (a measure of its business volume) […]

  • Melaye released after being detained, police deny involvement

    Kogi West senator, Dino Melaye has been released from detention reports reaching Business Hallmark indicate. The Senator was released after being detained by officials of the immigration service at the Nnamdi Azikiwe International Airport, Abuja on his way to Morocco The officials allege that he was detained based on an order from Interpol. However, the […]

  • Breaking: Senator Dino Melaye arrested at Abuja airport

      Senator Dino Melaye on Monday morning arrested after checking in at the international wing of the Nnamdi Azikiwe Airport, Abuja. The embattled senator representing Kogi West on the platform of the APC, tweeted that he was picked up on his way to Morocco for an official engagement sponsored by the Nigerian government. Melaye was […]

  • Big Brother Naija 2018: Miracle claims N25m cash prize, brand new SUV

    Miracle Ikechukwu Igbokwe has emerged the winner of Big Brother Nigeria #BBNaija, reality show. Miracle beats one of the most controversial housemates, Cee-C to win the ultimate grand prize of N25million cash, a brand new SUV among other prizes. Miracle is a young pilot and also a model. A total of 170 million votes were […]

  • Economy: Nigeria receives massive vote of confidence – Adeosun

    …We will continue to build reserves and save for the rainy day – Emefiele From OKEY ONYENWEAKU, Washington D.C, USA Minister of Finance, Kemi Adeosun Saturday in Washington D.C, USA said Nigeria has been praised for her good economic outlook.  Speaking to Journalists during a combined briefing with the Governor, Central Bank of Nigeria, Mr. […]

  • Nigeria-US Investment Summit not included in our schedule, says Adeosun, Emefiele

    The Minister of Finance, Kemi Adeosun and the governor of the Central Bank of Nigeria, Godwin Emefiele, have explained the reasons why they were absent at the Nigeria-Us Investors Summit which was held in Washington, DC on Saturday. The summit is organised by the Embassy of Nigeria in the United State and the absence of […]

  • Nigerian banks must grow risk-weighted assets to remain competitive, says Coronation Merchant Bank report

    FELIX OLOYEDE Ability to create risk asset creation in the real sector would set apart leaders of the Nigerian banking industry over the next three years, a new report from Coronation Research, a part of Coronation Merchant Bank Group has stated. The report released last week claimed that while the quality of asset in the […]

  • Nigerian equities market sheds 0.28%

    The equities market closed negative last week as Nigerian Stock Exchange All-Share Index (NSE ASI) dropped by 0.28 per cent to 40,814.89 basis points. Similarly, all other indices finished lower with the exception of NSE Consumer Goods, NSE Premium, NSE-Main Board, NSE 30, NSE Banking, NSE Oil/Gas, and NSE Pension indices, which appreciated by 1.08 […]

  • SEC expresses worry over spate of delisting companies

    FELIX OLOYEDE The spate of highly capitalised companies delisting from the Nigerian Stock Exchange (NSE) calls for some concern, the Securities and Exchange Commission (SEC) has stated. The Acting Director General, Ms. Mary Uduk, while briefing pressmen on the outcome of the first Capital Market Committee (CMC) in 2018 on Friday, noted that this trend […]

  • Borno Mosque Attack: Four killed, eight injured Sunday morning

    Four people have been killed and eight others injured in a suicide attack on a mosque in Bama Local Government Council, Borno state. The State Emergency Managment Agency (SEMA) chairman, Yabawa Kolo, confirmed the death toll on Channels Television. The incident occurred when two suicide bombers, a male and female between the ages of  13 and 14 invaded […]

  • Buhari returns to Abuja from London

    President Muhammadu Buhari has returned to Abuja after his visit to the United Kingdom, where he held bilateral talks on Nigeria – British relations and also participated in the Commonwealth Heads of Government Meeting ( CHOGM). The President on April 9 left Abuja for London after he announced his intention to seek re-election in the […]

  • World Bank jacks up share capital by $13 billion

    World Bank shareholders have approved an increase in the bank’s lending capacity  after the United States backed a reform package that curbs loans and charges more for higher income countries like China. World Bank President Jim Yong Kim said neither China nor any middle income countries was happy about the prospect of paying more for […]