Diamond Bank has announced that the sale of its UK subsidiary, Diamond Bank (UK) Plc. Would not cause a service disruption for the bank’s customers as they will continue to enjoy enhanced and convenient services.
The tier two recently announced the sale purchase agreement with a member of GFC Alliance for disposal of entire shareholding in its UK subsidiary Diamond Bank (UK) Plc.
The bank revealed that the sale was in line with the bank’s objective if streamlining its operations and focus its resources on the immense opportunities in Nigeria’s retail banking market.
This is not the first time the bank will divest from its subsidiaries as it had earlier announced its divestment from the West Africa business Diamond Bank S.A. for 61 million Euros to Manzi Finances S.A which was announced in November 2017.
Uzoma Dozie, CEO, Diamond Bank noted that the bank’s strategic objective is to become the fastest growing, and most profitable technology-driven retail banking franchise in the country.
This could mean divesting from its non-core assets and where necessary focus on priority areas such as Nigerian retail banking.
Banks in the country are broadly divided into two: Tier one and Tier two. Tier one banks comprise FBN Holdings, UBA, GT Bank, Acces Bank and Zenith while other banks in the country are collectively known as Tier two banks.
They typically have higher non-performing loans and lower Capital Adequacy Ratios (CARs).
In a bid to mobilize deposits, they pay higher rates also their relatively small size also deny them the advantage of a large pool of funds, like their Tier 1 counterparts.
Diamond Bank Plc commenced operations as a Private limited liability company in 1991. It was listed on the Nigerian Stock Exchange in 2005. It currently trades at N1.95 as at close of trading today.