Diamond Bank records N7.5bn PBT in Q1

LAGOSDiamond Bank Plc has announced that its profit before tax for the first quater of 2012 was N7.5 billion.
The bank pegged this on the back of robust operating efficiency and the completion of balance sheet clean-up, and provision of comprehensive banking and other financial services to corporate and individual customers across Nigeria and Africa.
Its financial highlight showed a bounce back to profitability on significant operating profit growth and falling cost of risk which is now 4.7 per cent from11.6 percent year ending 2011.
Its gross earnings rose by 51.2 per cent from N20.3 billion in March 2011 to N30.7 billion.
Its net interest income went up by 47.2 per cent from N12.3 billion in 2011 to N18.1 billion. It incurred more cost as its operating expenses soared by 12.6 percent, amounting N13.4 billion from N11.9 billion in the previous financial year.
Its profit before tax grew to N7.5 billion, up 316.7 per cent as against N1.8 billion in the previous quarter.
Commenting, Chief Executive Officer of the bank, Dr. Alex Otti, said, “Our first quarter results indicate that we are on track towards delivering significant ROE improvement and PBT growth in 2012. We have shown that our industry leading net interest margin is sustainable and that our operating efficiency is robust and yielding strong operating performance.”
The bank’s group balance sheet showed its total assets and contingents crossing the N1.0 trillion mark to N1.1 trillion from N991 billion in previous year ending and N874.9 billion in first quarter last year.
The Customer deposits also went up 6.4 per cent quarter on quarter to N640.1 billion and up 42.7 per cent year on year, from N601.7 billion in December 2011 and N448.5 billion in March 2011 respectively.
Its net risk assets went up by 10.8 per cent quarter on quarter to N440.3 billion and up 34.6 per cent year on year, from N397.4 billion December 2011 and N327.0 billion March 2011 respectively.
“With our balance sheet clean-up now complete, our cost of risk is returning to acceptable levels allowing for our operating performance to trickle down to the bottom-line and translate into a return to profitability as demonstrated by our significant rise in year on year PBT at the end of the first quarter.
We are delighted by these encouraging figures and will continue to maintain focus on growing our operating profitability at acceptable risk levels that ensure we deliver steady and growing returns to our shareholders in 2012 and the years ahead,” Dr. Alex added.

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