Business News Nigeria

Diamond Bank to conclude sale of UK subsidiary before year end – Official

CBN approves Diamond Bank's application to operate as national bank
The Managing Director/Chief Executive Officer, Diamond Bank Udoma Dozie

The Managing Director/Chief Executive Officer (CEO) of Diamond Bank Plc, Mr Uzoma Dozie, has disclosed that the bank will conclude the sale of its subsidiary in the United Kingdom before the end of this year.

According to the bank chief, the exercise is still under the change of ownership process.

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Recall that earlier this year, Diamond Bank Plc struck a deal with British industrialist, Mr Sanjeev Gupta, after selling its West African subsidiaries last year.

According to Reuters, the financial institution expects loans to grow 5 percent by the end of the year after credit declined in first half.

In May, Diamond Bank posted a 2017 loss, its first time in the red in six years after selling assets to conserve capital and to focus on its home market.

Its half-year 2018 pretax profit declined 69 percent to 2.92 billion naira, hurting its shares, which fell a further 1.60 percent on Tuesday.

Diamond Bank said it expected loan growth to return, growing five percent this year after credit declined in the first half by 3.6 percent.

Weak economic growth hurt loan growth in Nigeria last year. However, as the economy improves the bank expects loans to grow especially as the central bank introduces liquidity to the banking sector targeting credit to manufacturers.

The loan growth would come from corporate banking. With the turnaround in GDP we would begin to see opportunities in fast moving consumers good, manufacturing,” the bank said on a call with analysts.

Meanwhile at the close of transactions on Tuesday, the bank’s share price lost 2 kobo or 1.60 percent to close at N1.23k per share.


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