Diamond Bank Receives CBN Approval To Operate As A National Bank

* Move is part of Diamond Bank’s strategy to focus on
Nigeria’s significant opportunities
* Change in license means Diamond can expand product services to
Nigerian consumers
* Logical next steps following the disposal of Diamond’s West
African Subsidiary and the sale of Diamond Bank UK

Diamond Bank Plc (“The Bank or “Diamond”), Nigeria’s fastest
growing retail bank, has received the approval of the Central Bank
of Nigeria (“CBN”) following its application to operate as a
National Bank with immediate effect (subject to conclusion of the
sale of Diamond Bank UK- DB UK Plc). With this approval the bank
will cease to operate as an International Bank.

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.

The move follows 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 national bank status also enables the bank to
maintain a lower minimum capital requirement of 10% as against 15%
required for international banks. 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.

Uzoma Dozie, CEO, said: “The move to a national banking license
marks a continuation of our strategy to focus on Nigeria’s
significant fundamental trends, including a large underbanked
population and Africa’s biggest economy. By focusing and optimizing
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 does not affect the bank’s ability to offer
services to its clients in international locations; Rather, with
focus on its domestic business being priority, the bank also
intends 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.

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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