Diamond Bank to Sell Non-core Assets to Shore up Capital

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Chika Amanze-Nwachuku and Obinna Chima
Diamond Bank Plc plans to sell some of its non-core assets as part of strategy to beef up its capital in the short to medium term.

The bank’s Chief Executive Officer, Mr. Uzoma Dozie, disclosed this in an exclusive interview with THISDAY.
According to Dozie, the bank has adequate capital presently, and is not opening “new brick and mortar branches anymore which naturally requires deployment of capital.”

The United Bank for Africa Plc and Zenith Bank Plc recently raised $500 million respective via Eurobond issuance recently. Some other banks are also to sale on June 1 at yields below initial guidance.

But for Diamond Bank, Dozie said the bank would allocate its cost to its strategic objective.
He added: “Right now, we have adequate capital because we are not building new branches any more, which is one thing that takes a lot of cost. We are also looking at assets that are not in line with our goals again, to see what to do to them. “These are assets that may be of benefits to other people. Any of the assets that is not in line with our retail strategy can go.

According to Uzoma, Diamond Bank was solidly committed to growing its corporate and mid-tier market segment in the business year and the years ahead, pointing out that the bank had outlined detailed strategies that are helping to leverage the current business momentum in the economy.