Although the bank recorded a growth of 4.3 per cent in gross earning, its profit before and after tax fell significantly.
Diamond Bank ended the year with gross earnings of N217 billion, up from N208 billion in 2015 but profit before tax fell from N28.1 billion in 2015 to N7.1 billion, while profit after tax stood at N5.6 billion, down from N25.6 billion.
The lower bottom line was affected by high net impairment loss on financial assets, which jumped by 109 per cent from N26.3 billion to N55.2 billion.
In his comments, the Chief Executive Officer of Diamond Bank, Mr. Uzoma Dozie, said: “2015 was undoubtedly a challenging year for us owing to a mixture of external factors not limited to regulatory headwinds and a difficult macroeconomic environment. Whilst this led to additional impairment charges following a prudent review, we have further tightened the criteria for loan originations in order to better align our loan portfolio with the macroeconomic conditions. As a result, we are confident that the overall quality of our loan book remains high.”
“A number of mitigating actions are being taken to address and drastically reduce these challenges, thereby putting Diamond Bank in a better position to achieve better results and strong earnings for the shareholders in the current business year”, the CEO said. Click to signup for FREE news updates, latest information and hottest gists everyday
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It will be less than this unless our banks wake up to do what is expected of them. Banks in Nigeria operating as if they don't understand the duties of banks.
ReplyDeleteMost of these Mushroom banks rely on loots hartless Politicians hide with them. Whereas giving out loans to serious businessminded Citizens will improve our economy and banks profits.
With the changes going on in the country these days, I hope they will be more serious than before.
The banks should lend to the real sectors to create wealth and jobs for our teeming unemployed youths,the time has come to support entrepreneurs financially,government needs to create an enabling environment for businesses to thrive.
ReplyDeleteThe banks should lend to the real sectors to create wealth and jobs for our teeming unemployed youths,the time has come to support entrepreneurs financially,government needs to create an enabling environment for businesses to thrive.
ReplyDeleteStory 4 the gods my 940k, I go withdraw you shapely before citizen bank matter go repeat itself. Amadi mapukwa unu anya dia
ReplyDelete