Diamond Bank Plc, provider of comprehensive banking and other financial services to corporate and individual customers across Nigeria and Africa announces its results for the 6 months ended 30 June 2010.

The unaudited result demonstrates continued growth in lower cost demand deposits and cost efficiency gains, emanating from its process reengineering initiatives

According to a statement released by the Bank, it recorded an impressive growth of 240% in Profit Before Tax and Exceptional Items, from a negative of N4.35bn from the corresponding period to N6.09bn in the period ended June 30, 2010, adding that its balance sheet grew by 6%, while its liquidity ratio stood at 44%, (19% above the minimum regulatory ratio of 25%).

Speaking on the result, Emeka Onwuka, Managing Director of Diamond Bank commented that the improving global financial and economic landscape has led to increased confidence in the Nigerian banking system and the gradual rebound of the stock market has given a clear indication of the renewed confidence in the Nigerian capital market. “At Diamond Bank, we have adhered to our organic growth strategy and have continued to grow our deposits over the period. Importantly, low-cost deposits now account for over 60% of our total deposits,” he said.

Onwuka further stated that the Bank’s process reengineering project initiatives has also begun to deliver efficiency gains.

“Besides our process reengineering project initiatives has started to deliver efficiency gains. We have opened more office locations with improved cost efficiencies which are increasing our ability to sustainably secure low cost funding for the group.

The newly commissioned Enterprise Risk Management Framework and membership of two credit risk agencies has improved our risk metrics considerably and enabled the bank to set and manage its risk appetite according to our strategy.

For the rest of the year, we will continue to focus on the retail segment of our business, with several initiatives already started this year including our reduction in lending rates and zero percent interest automobile loans.

This, coupled with re-engineering processes within the bank, will enable us to continue to enjoy the benefits of the rebounding economy while remaining a major player in the middle market and making in-roads to a larger share of the corporate and public sector banking spaces.”