Diamond Bank records good Q3 performance - CNBC Africa

Diamond Bank records good Q3 performance

Western Africa

by Dara Rhodes 0

Diamond bank recorded growth. Photo: Getty images

The tier 2 bank recorded a 21.2 percent rise in gross earnings at a 106 billion naira, crossing the hundred billion dollar threshold. The banks net profits came in at 20 billion from about 18 billion last year.

“The performance has continued to improve not only from the beginning of this financial year but from 2012. We’ve always had positive improvement sometimes quarter on quarter and it’s been fundamentally underlined by the retail strategy of the bank,” Abdulrahman Yinusa, CFO, Diamond bank told CNBC Africa.

Despite the stricter financial regulatory burden and the changing dynamics of the banking space in Nigeria, Yinusa believes that they were well prepared for it.

“When the story hit, sometime in June, July, that something is going to happen in that space, we looked at performance generally and out of the 1.3 trillion that hit the system, our bank was hit by less than 100. It was a number that was very decent,” he explained.

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The Asset management corporation of Nigeria (AMCON) bill was signed into law in July for the purpose of resolving non-performing loan assets of banks in Nigeria and matters related to that.

“The amount that was debited because of AMCON was not a surprise, recall that there has always been support in the industry for AMCON. It used to be somewhere around 0.3 per cent which was then increased 0.5 per cent,”

According to Yinusa, there are many unbanked Nigerians all together and even those who are banked, have poor access to mainstream financial services.

“We have gone into a lot of partnerships to be able to provide what we call easy access to a lot of account opening and processing because what had happened in the past was that you could not open a drivers account except you have a drivers licence or a passport but CBN has lessened that now,” he added.

Statistics have shown that about 120 million phone lines are now connected in Nigeria and Diamond Bank plans on leveraging on this information by partnering with a telecommunication company thus enabling customers to use the biometric information required to set up their phone lines to open accounts.                                                 

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