Diamond Bank is selling off its UK subsidiary to focus on retail banking in Nigeria
Diamond Bank says the sale of the international subsidiaries is not expected to cause service disruptions for the Bank’s customers located around the world as they can continue to enjoy enhanced and convenient banking services through the Bank’s digital channels.
The disposal, the Bank said in a statement made available on the Nigerian Stock Exchange on Wednesday, April 25, 2016, that it is in line with its objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market.
The statement reads, “The Bank and GFG Alliance are committed to, and are pursuing a quick completion of the transaction subject to the approval of the Financial Conduct Authority and Prudential Regulation Authority who regulate banking business in the United Kingdom.”
“The sale of the international subsidiaries is not expected to cause service disruptions for the Bank’s customers located around the world as they can continue to enjoy enhanced and convenient banking services through the Bank’s digital channels.”
Uzoma Dozie, Diamond Bank's CEO, while commenting on the transaction, said: “Diamond Bank’s strategic objective is to be the fastest growing, and most profitable technology-driven retail banking franchise in Nigeria.
“This strategic intent requires the Bank to optimise the use of its resources which means, where necessary, divesting from its non-core assets and focusing on the priority area, namely Nigerian retail banking.
“In recent years, the Bank has laid the foundation for growth in Nigeria with the acquisition of over 15 million customers, many of whom are owning bank accounts for the first time.
“The Nigerian market has vast potential due to its strong fundamentals, including millions of people who are either underbanked or unbanked and changing lifestyles that favour the use of mobile devices to complete multiple financial transactions at the consumer’s convenience.
“This is also underpinned by significant economic potential driven by an entrepreneurial spirit and a growing culture of innovation. Moreover, by harnessing technology and fostering a digitally led approach, the Bank will have further positive impact on the overall development of the financial system, and the Nigerian economy in general.”
This transaction is coming 5 months after the Bank divest from its West African business, Diamond Bank S.A., in November 2017.
Late Filing of 2017 full year report
Diamond Bank Plc was among the list of banks penned down by the Nigerian Stock Exchange (NSE) to be sanctioned for late submission of their audited reports and accounts for the immediate past business year.
Diamond Bank Q3 2017 financial result
In its first quarter 2017 report, the Bank had moderate growth in key financial parameters despite the lull trailing economic activity after the country exited recession.
For the nine months period in 2017, the Bank’s gross earnings jumped by 11% year-on-year to N168.4 billion while profit before tax surged by 71% to N6.7 billion. Impairment charges shrunk by 16% to N35.3 billion year-on-year, reflecting management’s prudent approach to loan underwriting.
During the period under review, the Bank curtailed staff costs shrank by 5% year-on-year as a result of its digital mobile platforms evolution which led to a 95% increase in online banking and mobile transactions.
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