Diamond Bank records improved Operating Profit in its First Quarter 2011 results.

Diamond Bank Plc, the provider of comprehensive banking and other financial services to corporate and individual customers across Nigeria and Africa announces Group results for the three months ended 30 March, 2011.

According to statement by the Bank, the result shows a continued profitability in the Group’s Profit and Loss account, despite challenging environment. It said, its Operating Profit of N6.3 billion is an increase of 28.6% (N4.9 billion March 2010), while the Bank recorded a Net interest income of N12.3 billion, an increase of 20.6% (N10.2 billion March 2010), adding that its operating expenses was stable at N11.9 billion (N11.6 billion March, 2010).

Speaking on the released result, the Group Managing Director/CEO, Diamond Bank Plc, Alex Otti, commented: "Diamond bank has remained profitable in the first quarter of 2011, our operating profit has grown 28.6% against last year's Q1 levels on the back of growing revenues and a stable expense base. We have maintained our strong liquidity position and our risk asset quality continues to improve. As our retail banking push continues, our customer base is growing with recurring monthly fee income improving and our growing retail liabilities have reduced our overall cost of funds to 2.2% from 6.4%. The bank currently operates through 215 branches across the 36 states of Nigeria and we intend to increase this to 300 in the near future. When combined with the stable operating cost structure, and our upward trending operating income over the last three years, we can safely say that Diamond bank is well positioned to continue to be Nigeria's fastest growing retail bank. Despite our very positive operating performance, the group continued to experience headwind from legacy loans and losses on disposal of its non-core assets in 2011. The new management that assumed office in March 2011 is already taking steps to firmly resolve the legacy issues in the course of the current financial year, and set a new and significantly more profitable direction for the Group in 2012 and going forward.

Other Financial Highlights include a gross earnings of N20.3 billion, a year on year decrease of 17.1% (N24.5 billion March 2010)· It’s Profit before tax stood at N1.8 billion, a decrease of 10.0% (N2.0 billion March 2010) and a provision for loans and investment losses of N4.5 billion (N2.9 billion March 2010). Risk assets volume grew by 4.7% to N327.0 billion from N312 billion in December 2010 while its deposits volume grew by 8.9% to N448.5 billion from N412.0 billion in December 2010.