Why Diamond Bank Directors resigned

The quest for additional capital may have been the reasons why some non-executive directors of Diamond Bank resigned their appointments with the bank, National Daily has gathered.

Recall that the bank had in a notice sent to the Nigerian Stock Exchange announced the resignation of several non-executive directors, including Oluseyi Bickersteth, Rotimi Oyekanmi, Juliet Anammah and Aisha Oyebode.

The sudden resignation, National Daily gathered was to pave the way for new investors to recapitalise the bank.

Diamond Bank have been trying to raise fresh capital after huge loan losses worsened by an economy that has just recovered from a recession. The economic crisis turned a once lucrative oil sector loan book sour with several banks looking for new avenues to make money.

The bank recently announced a share sale and purchase agreement with a member of GFG 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 of streamlining its operations and focus its resources on the immense opportunities in Nigeria’s retail banking market. It had earlier announced its divestment from the West Africa business, Diamond Bank S.A. for 61 million Euros to Manzi Finances S.A in November 2017.

In its full year 2017 financial results its revenue increased from N184.1 billion in 2016 to N189.6 billion in 2017, the company recorded loss after tax of N9.01 billion during the year ended December, 2017, as against a profit after tax of N3.49 billion in the full-year 2016.

While in its H1 2018 financial statements for the year ended 30 June 2018, it recorded a gross earnings of N98.5 billion for the period ended June 2018 compared to N97.9 billion reported for the period ended June 2017. This represents 1% increase year on year. The bank’s profit after tax for the half year ended 30th June 2018 was N1.80 billion, a 78% decrease compared to profit of N8.02 billion recorded in H1 2017.

Currently, most Nigerian banks face stiff competition from rapidly growing financial technology firms that are undercutting a sizable portion of the payments market in the country.