By NKIRUKA NNOROM

Diamond Bank Plc has declared profit after tax of N9.995 billion for the second quarter ended 30th June, 2011.
This compared to N1.967 billion recorded in equivalent period of 2011, represents significant 408.1 per cent improvement.

The bank’s unaudited quarter two financials made available to the Nigerian Stock Exchange (NSE) indicated that profit before tax also rose by the same margin to N15.5 billion, compared to N11.2 billion in the same period of 2011.

The gross earnings witnessed 43.62 per cent increase to N64.77 billion, as against N43.62 billion recorded in 2011, while Loans and advances to customers grew to N505.7 billion up from N433.5 billion in March 2011, amounting to 17 per cent increase and up 29 per cent to N392.0 billion in December 2011.

The results showed that Provisioning for bad debt during the period stood at N10.1 billion, as against N11.2 billion in June 2011. The total Assets was N960.1 billion, up by 12 per cent from N855.3billion in March 2012 and up 20 per cent from N802.7 billion in December 2011.

The bank’s deposits from customers grew to N679.3 billion, which was six per cent increase from N641.1 billion in March 2012 and 13 per cent growth over N603.0 billion in December 2011.

Dr. Alex Otti, the Group Managing Director, noted that the result was a testimony to the management’s efforts to solidify its financials and build on the progress made so far through the cleaning up of the balance sheet.

“In Q2, we continued to build on the solid foundation we established following the completion of our balance sheet clean up in Dec 2011. We are reporting healthy asset growth of 12 per cent quarter on quarter and we have sustained strong deposit growth especially from the retail segment of the market.

“Our cost structure remained stable in Q2, with our risk indicators continuing to show sustainable asset quality improvements which adequately place the bank to deliver on target ROE by year end.”

He noted that the customer base was growing, with recurring monthly fee income improving, adding that growing retail liabilities have continued to sustain the low cost of funds.

Other highlights of the result showed that net interest income was up by 71 per cent to N42.0 billion compared to N24.5billion in June, 20111, net operating expenses rose to N29.1 billion from N25.3 billion, representing 15 per cent increase.

Cost/income ratio closed at 53 per cent, Loan/deposit ratio stood at 80 per cent, while liquidity ratio stood at 40 per cent compared to Central bank of Nigeria’s statutory minimum requirement of 30 per cent.