Diamond Bank Warns Stakeholders of Looming Lower Earnings

Diamond Bank Plc joined a host of other companies last week to sending a profit plunge warning to capital market operators.

FCMB Group Plc and FBH Holdings Plc had sent similar profit warnings to the market due the challenging operating environment.

Also, Computer Warehouse Group (CWG) Plc last Tuesday said it would record loss for 2015 financial year.

Diamond Bank said on Friday that the lingering deterioration in Nigeria’s macro-economic conditions has resulted in the bank recognizing higher than expected impairment charges on loans made to the energy and commercial business sectors.

The bank said: “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.”

According to the bank, 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.