Diamond Bank Plc has issued a profit warning on the Nigerian and London Stock Exchanges in respect of its 2015 audited accounts.
According to the Bank, this is coming on the heels of continuous deterioration in Nigeria’s macro-economic conditions which has resulted in it recognising higher than expected impairment charges on loans made to the Energy and Commercial Business sectors.
“In light of these deteriorating conditions, and subsequent review of Diamond Bank Plc’s management accounts for the financial year ended December 31, 2015, preliminary indications are that earnings will be lower than in 2014. Detailed financial statements for the year ended December 31, 2015 are expected to be released on or before March 31, 2016,” the lender said in an issuer’s announcement with the Nigerian Stock Exchange”.
“Diamond Bank wishes to reiterate that in recent years it has deployed considerable resources in building a dependable risk management framework, and the quality of its loan portfolio in general, remains high,” the Bank added.
Diamond Bank says it remains determined to deliver on its stated strategy of creating Nigeria’s leading technology-led retail bank.
ALSO SEE: Diamond Bank tasks investors on more opportunities in Nigeria
It affirmed that despite this shortcoming, in 2016 the business has made significant changes to its operating structure that will result in reductions in operating costs.
The Bank disclosed that further investment has been made to improve customer relationships and revenue in its core business segments.
“These actions aim to deliver improved earnings and lower operating costs from 2016 onward.
Overall, despite the headwinds and the fact that 2016 presents a tough operating environment for the industry, we remain optimistic on the fundamentals underpinning our long term retail-led business strategy,” Diamond Bank said.
Shares of the Bank at the close of Friday’s trading on the Nigerian bourse dropped 1.94 percent to N1.52 from N1.55 traded the previous session.