Diamond Bank’s stock slumps 11.33% as CBN deducts N250 million MTN linked fine

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A view of the Diamond Bank is seen along the Lekki-Epe Expressway in Lekki, Lagos, Nigeria September 12, 2017. REUTERS/Akintunde Akinleye

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

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.

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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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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