By Nkiruka Nnorom
DIAMOND Bank Plc has posted a profit after tax, PAT, of  N3.5 billion and gross earnings of  N13.19 billion  for its third quarter, Q3, ended September 30, 2016.

This according to in the bank’s unaudited financial statement made available on the Nigerian Stock Exchange, NSE, stood for 78.1 per cent and 26.3 per cent decline in profit after tax and gross earnings respectively. The bank stated in an accompanying note that the decline in profit was driven by impairment charges as the bank opted for prudent provisioning by cleansing its books of assets with poor quality.

Highlights of the result showed that Diamond Bank recorded 16.9 per cent growth in total assets to N2.05 trillion for the nine month period from N1.75 billion posted in the corresponding period in 2015.

The growth, according to the bank in an accompanying note, was driven mainly by the value of the local currency and growth in customer deposits, which surged 13.6 per cent from N1.233 billion as at the end of September 2015 to N1.401 billion in the review period. Also, the bank grew its loan portfolio from N763.634 billion to N1.041 trillion, representing 36.4 per cent increase.

Other highlights of the result showed that Diamond Bank recorded strong growth in non-interest income, which leapfrogged by 38.1 per cent to N37.6 billion, while its retail customer base grew to over 13 million.

Commenting on the results, Mr. Uzoma Dozie, CEO, Diamond Bank Plc, stated that the bank’s modest growth in the last nine months, despite the inclement operating environment, was the result of management’s focus on key strategic projections across the three core segments of retail, business and corporate banking. He noted that the bank would continue to pursue its technology-driven retail strategy to optimise cost and reap predictable bountiful results in the medium to long term.

Uzoma said: “We believe the macro conditions and other external factors will remain challenging for the rest of the year and well into 2017. However, by pursuing our technology-led retail strategy and with our focus on innovation and scalability, we believe the bank is well-placed to benefit in the medium to long term from the favourable fundamentals in Nigeria, namely a large population, many of which remain unbanked. This strategy stands to benefit all stakeholders, including our shareholders and customers in the long run.”