Diamond Bank, One Best Performing Stock to Watch This Week

By Paul Mbagwu

Diamond Bank Plc came out best-performing stock in the prior week. The stock appreciated by 20% to close at N1.44 on the back of reports that the bank would be having new key investors.

The bank issued a statement debunking the reports, with erstwhile Chairman, Oluseyi Bickersteth, denying that he had resigned. He was of the opinion that the bank would consider recapitalisation through a rights issue or capital injection from new investors.

The stock could either continue the decline from Friday or appreciate, depending on the information available.

The bank recorded N142.54 billion in gross earnings, and N3.09 billion profit before tax, PBT for the nine months ended September 30, 2018. The interim financial result of the bank released to the Nigerian Stock Exchange, NSE, showed that the bank disbursed a total of N1 billion to small business owners under its cash flow-based Small and Medium Enterprises, SMEs, lending scheme.

Breakdown of the result showed that the contribution of non-interest income to profit increased by 10.81 per cent to N27.32 billion in quarter three, Q3, 2018 from N24.66 billion in Q3 2017, while impairment charges were down 24.21 per cent to N25.17 billion from N33.21 billion.

Interest expense went up by 18.32 per cent to N41.26 billion year-on-year, but it has continued to decline in-line with guidance, falling by 15.36 per cent from N14.83 billion Q1 2018) to N12.56 billion Q3 2018.

The bank stated that cost containment measures are underway with the digitization process contributing to quarter-on-quarter gains, leading to 0.36 per cent decline in Operating Expenses, OPEX, to N22.15 billion.

Today, Diamond Bank is one of the leading banks in Nigeria respected for its excellent service delivery, driven by innovation and operating on the most advanced banking technology platform in the market. Diamond Bank has over the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships. And like a diamond, our strength makes us even more valued and valuable.

Diamond Bank Plc. engages in universal banking activities. The Bank’s activities include Lending & Equipment Lease Services, Electronic and Internet Banking products, Western Union money transfers, Investment Banking Products & Services, Money Markets products, as well as Foreign Exchange products.