Tier two lender, Diamond Bank Plc has denied media reports of a planned capital injection by new investors. In a notice sent to the Nigerian Stock Exchange (NSE) today, the bank stated that such reports were an absolute falsehood. “These reports are far from the truth. Diamond Bank is not in talks with any party, global or otherwise, for any capital injection.”
The bank also disclosed that it would shore up its capital internally.
“While previous communication from the bank has highlighted a need to shore up the Bank’s Capital Adequacy Ratio (CAR), the preferred option is an internal capital management programme that has been explained in detail to analysts and investors.”
Several media outlets had this week reported that the company was in talks with new investors to inject capital into the bank.
The report may have also gained credence following the resignation of the bank’s Chairman, Mr Oluseyi Bickersteth and three other directors – Rotimi Oyekanmi, Juliet Anammah, and Aisha Oyebode.
The reports had also stated that the bank’s Group Managing Director Uzoma Dozie would step down next year.
The bank had in the last one year sold non-core assets in a bid to shore up capital. In April this year, it sold its UK subsidiary to GFG Alliance.
Last year, it sold the holding company for its West African branches to Manzi Finances S.A. for 61 million Euros.
Diamond Bank is currently trading at N1.42 in today’s trading session on the NSE, down 6.04%. The stock had appreciated sharply when rumours of reported new investors broke out.
Results for the half year ended 30th of June 2018 show the bank recorded gross earnings of ₦98.5 billion for the period ended June 2018 compared to ₦97.9 billion reported for the period ended June 2017. This represents a 1% increase year on year.
The bank’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 2017.