By Peter Egwuatu
Diamond Bank Plc’s strategy to return to profitability after the stock market meltdown in 2008 has started paying off as its share price has moved from a low price of N3.80 per share in 2009 to a high of N9.27 per share in January 2011, representing a growth of 144 per cent.

The Bank’s share price opened  January 1, 2010 at N7.40 per share and  closed on  January 4, 2011 at N7.87. It rose to N9.27 per share in January 21, 2011 before dropping to N7.00 per share at the close of trading last week.

Also, the Bank has demonstrated commitment  to the principles and practice of good Corporate Governance as directed by the Securities and Exchange Commission (SEC), apex regulatory body in the Nigerian capital market in 2003.

Even with the improvement in share price, the Chairman of the Bank, Obi Nnaemeka Alfred Ugochukwu Achebe said that he felt the pain of shareholders as their investment eroded in value but noted that management has taken strategic actions that would gradually restore sustainable shareholder value.

As a people-oriented bank , it was  mindful of the concerns of its shareholders over the bank’s performance during the years of crisis.

It was in this respect that the Chairman assured shareholders of the board’s commitment to sustaining the quick return of the Bank to profitability in years ahead, just as he expressed the bank’s preparedness to do everything within its control using their profit before tax of N2 billion for the first quarter of 2010 as a springboard to much higher profitability as they progress through other years of operations.

In his review of the operations of the Bank at the 19th Annual General Meeting (AGM) , the outgoing Managing Director/Chief Executive Officer, Mr. Emeka Onwuka said, “It is important to note that we have assessed the challenges that let to the bank’s performance under review, identified the learning points and more importantly, set out the roadmap to recovery and  profitable growth.

We are mindful of the enormous investments made in the Bank by all stakeholders. As a result, We are positioning for strong performance in the aftermath of economic crisis”

Meanwhile, Diamond Bank has stated that it has established a set of strategic objectives, corporate values defining lines of responsibility and accountability that promotes good corporate governance in all the Bank’s processes and relationships.

The Bank noted that building a reputation over time through the continuous maintenance and enhancement of the culture of honesty, integrity, fairness, excellence, respect and concern for others have been its hallmark.

Diamond Bank Plc began as a private limited liability company on March 21, 1991 and was founded by  Mr/Mrs Pascal Dozie. The Bank like any other business entity began to pursue its mission and vision of becoming solution provider with presence in strategic location throughout Africa and beyond with excellent service delivery

Ten years later, in February 2001, it became a universal bank and by January 2005, following a highly successful Private Placement share offer which raised the Bank’s equity base, Diamond Bank became a public limited company and was listed same year on the NSE. In January 2008, Diamond Bank’s Global Depositary Receipts (GDR) was listed on the Professional Securities Market of the London Stock Exchange and it is on record that it was the first bank in the whole African continent to achieve such feat.

Meanwhile, Diamond Bank is in the league of top providers of financial services to small, medium and middle market enterprises. In recent years,  the Bank further intensified its determination to continuously support the real sector of the economy in line with their small and Medium Enterprises (SME’s) model.

This is in recognition of the fact that the sector is the base on which the future growth and development of the nation depends.  Building on some of the SME initiatives the Bank recently undertook to give life to business by providing the platform for easy access not just to capital but also in the area of capacity building through strategic partnership with International Finance Corporation (IFC), an arm of the World Bank thereby benefitting from a $520 million facility, dedicated specifically to support the growth of African Micro Small and Medium Enterprises (AMSME) lending in the country just as it also provided help in the area of building platform to accelerate the rate at which the Bank provides effective and efficient banking service to MSMEs.

Diamond Bank has over the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships.

The Bank has retained excellent banking relationships with a number of well_known international banks, allowing it to provide arrays of world class banking services to suit the business needs of its clients. These international banking partners include Citibank; HSBC Bank; ANZ Banking Group; ING BHF Bank AG; Standard Chartered Bank; Belgolaise Bank S.A; Deutsche Bank; Commerzbank; and Nordea Bank Plc.

In 2008, in order to ensure efficiency in all areas of its operations, and attain positively to the needs of its customers, the bank streamlined its operations into three distinct strategic business segments namely:  Retail banking, Corporate Banking, and Public sector.

Diamond Bank’s A rating by Fitch Ratings, Agusto & Co, and AA- rating by GCR, reflects the bank’s sustainable liquidity, sound and professional practices and good standing as a high investment grade institution.

The dream of the founding fathers as gathered  was to ensure the Bank grows in all dimensions to become a strong financial services institution with effective presence in Nigeria and Africa.