Diamond Bank Nigeria to declare lower earnings in 2015

Diamond Bank Nigeria to declare lower earnings in 2015

Diamond Bank Nigeria Plc on Friday notified the Nigerian Stock Exchange (NSE) and investors that its expected earnings for the financial year ended Dec. 31, 2015 would be below 2014 figures.

The continuing deterioration in Nigeria’s macro-economic conditions has resulted in Diamond Bank  Plc (Bloomberg: DIAMONDBNK) recognising higher than expected  impairment charges on loans made to the  Energy and Commercial Business

sectors.

This is contained in a profit guidance statement by the company to the exchange and the London Stock Exchange.

The statement said that preliminary indications showed that 2015 earnings would be lower than in 2014.

It stated that continued deterioration in the nation’s macro-economic condition resulted to higher than expected impairment charges on loans made to the energy and commercial business sectors.

“In light of these deteriorating conditions  and subsequent review of the bank’s management accounts  for the financial year ended Dec. 31, 2015, preliminary indications are that earnings will be lower than in 2014,” it said.

The statement stated that detailed financial statements for 2015 would be released on or before March 31, 2016.

It added that the bank had deployed considerable resources in building a dependable risk management framework.

It explained that the quality of its loan portfolio in general remained very high.

“The  bank remains determined to deliver on its  stated strategy of creating Nigeria’s  leading technology-led retail bank,” said the statement.

It also said the bank had made  significant changes in its operating  structure aimed at reducing operational cost.

According to the statement, further investment has been made to improve customer relationships and revenue in its core business segments.

“These actions aim to deliver improved earnings and lower operating costs  from  2016  onward.

Despite the headwinds and the fact  that  2016 presents a tough operating environment for the industry, we remain optimistic on the fundamentals underpinning our long-term retail-led business strategy,” it stated.