Diamond Bank confirms deduction of N250 million fine

Tier two lender, Diamond Bank Plc has confirmed that the sum of N250 million has been deducted from its account with the Central Bank of Nigeria (CBN). The bank sent a notice to the Nigerian Stock Exchange (NSE) after trading hours. The amount pertains to a fine imposed, by the Central Bank of Nigeria (CBN), following its investigation of foreign exchange remittances on behalf of MTN Communications Nigeria Limited.

The bank, however, stated that it would continue to engage and cooperate with the CBN, and furnish it with every information necessary to reaffirm its stand that the Bank carried out the subject transaction in full compliance with all rules, regulations, and guidelines.

The payment of the fine would however not impact on its capacity to offer normal banking services, including transactions that have to do with capital importation. Stanbic IBTC Holdings, in a notice sent to the Nigerian Stock Exchange yesterday, stated that the Central Bank of Nigeria (CBN) had deducted a N1.88 billion fine from the accounts of its banking subsidiary Stanbic IBTC Bank Plc.

The apex bank last week fined Diamond Bank, Stanbic IBTC, Citibank and Standard Chartered Bank a total of ₦5.86 billion for breaching Nigeria’s extant laws and forex rules when they facilitated illegal repatriation of funds to South Africa on behalf of MTN.

Diamond Bank closed at N1.33 in today’s trading session, up 8.13%. Year to date, the stock is down 11.33%.

Results for the half year ended June 2018 show gross earnings increased from ₦97.9 billion in 20171 to ₦98.5 billion in 2018.

Profit before tax was ₦2.9 billion for the period ended June 2018, a 69% decrease compared to a profit of ₦9.5 billion reported for the period ended June 2017.

The company’s profit after tax for the half year ended 30th June 2018 was ₦1.80 billion, a 78% decrease compared to a profit of ₦8.02 billion recorded in H1 2018.

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