Diamond Bank Plc has received the approval of the CentralBank of Nigeria, following its application, to operate as a national bank withimmediate effect.http://www.updatecrew.com/2018/11/precious-stone-bank-gets-cbns-gesture.html
This is, however, subject to conclusion of the sale of
Diamond Bank UK- DB UK Plc.
According to the Chief Executive Officer of the Bank, Uzoma
Dozie, on Friday, with this approval, the bank will cease to operate as an
international bank.
According to him, the move is part of Diamond Bank’s
strategy to focus on Nigeria’s significant opportunities.
He noted that change in licence means Diamond could expand
product services to Nigerian consumers.
“The re-licensing as
a national bank supports Diamond’s objective of streamlining its operations to
focus resources on the significant opportunities in the Nigerian retail banking
market, and economy as a whole,” he stated.
He added that the move followed Diamond’s decision to sell
its international operations, which included the disposal of its West African
subsidiary in 2017 and Diamond Bank UK, the sale of which is currently in its
final stages.
“The change to a national bank status also enables the bank
to maintain a lower minimum capital requirement of 10 per cent as against 15
per cent required for international banks,” he added.
According to him, this creates room for the bank to deploy
more capital for stronger growth in the quarters ahead through additional
investment in technology platforms, customer acquisition and expansion of loans
to the critical sectors of the economy.
The chief executive officer said, “The move to a national
banking licence marks a continuation of our strategy to focus on Nigeria’s
significant fundamental trends, including a large under-banked population and
Africa’s biggest economy.
.
“By focusing and optimising our resources towards Nigeria
and the priority area of retail banking, we will be better positioned for
longer term growth and greater profitability.
“The reduction in minimum capital requirement also increases
our capacity to expand the quantum of business and product services we can
offer consumers, as well as representing a key step in strengthening our
financial position.”
This development, he added did not affect the bank’s ability
to offer services to its clients in international locations, rather, with focus
on its domestic business being priority.
He said the bank also intended to pay down in full, the
Eurobond loan of $200m at maturity in May 2019.
“There will be no refinancing of the loan as the intent to
pay down with foreign exchange generated from its internal operations, a
reflection of the solidity of its operations and funds flow in the last few
years,” he added.
According to him, top quality services to international
customers will continue through its digital channels (Diamond Mobile, Internet
Banking etc.) and network of correspondence banks.
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