Diamond Bank shares are plunging at the Nigeria Stock Exchange (NSE), falling for the third consecutive day.
Traders say this is as a result of capital concerns, following the dissolution of Skye Bank’s board over the same reasons.
On July 4, the top management of Skye Bank resigned in line with the decision of the Central Bank of Nigeria (CBN) to dissolve the management boards of the bank.
Skye Bank shares fell by 9.2 percent on Monday morning to its lowest in the bank’s history.
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Diamond Bank’s shares fell by 9.5 percent at about 11am on Monday, falling to N1.82 per share, from N1.91 at the start of business on Monday.
The lender had traded N1.71 million in shares on Monday, as some portfolio investors were voting their monies out of the bank’s share.
The bank has lost 55 percent of its share value in 2016, with over 27 percent of that in the past three trading days.
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As the capital concerns hurt the bank’s shares, the CBN has insisted that all Nigerian banks are healthy.
“For the avoidance of doubt, the infusion of a new Board and Management for Skye Bank PLC is a proactive regulatory action meant to ensure that the bank does not continue to fail in its relevant prudential ratios. Neither Skye Bank nor any other bank in the industry is in distress,” CBN had said in a statement.
“Therefore, the CBN would like to request the general public to ignore speculations or rumours to the contrary as they could only be the handiwork of mischief makers who do not mean well for the Nigerian banking system and its economy.
“As the regulator of the industry, the CBN hereby reassures the banking and general public that their deposits remain safe in any Nigerian bank.”
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8 comments
What is happening to Diamond,…. our bank?
Is it that the blade is blunt or that the barber is not competent enough?
I see the Diamond ship rigmaroling around the financial Bermuda triangle. I pray urgent steps are taking to avert this calamitous manoeuvre.
Elders of Diamond Bank, advice your captain. Our people say, that in the event a child does not know the right thing to do, the relative should guide him a right. Reason is that once then head is cut off, the entire body is affected.
The barber may not know how to shave. They need Alex Otti back there; now is the time they need him most
So this is why they sacked 400 staff and call them non performers. Integrity is lacking I sense
When the head is rotten and lacks integrity even in a simple matter as staff retrenchment. What do you expect?
Whereas over 400 staff were retrenched, he lied that its only 200. Whereas majority of affected staff had good appraisal, he lied they are non-performer. We await the cbn to prove that he is the most woeful performer. The case of Skye Bank is even pathetic for the fact that they recently acquired mainstreet. Diamond bank has nothing to defend its woeful book that it has been stage managing for more than 2 years now. Cbn cannot afford to waste more time, unless they want depositors funds to be eroded after the shareholders funds had completely been eroded since 2014.
I think he is trying to save much funds to stabilize, hence the mass exit of staff and refusal to pay them off. He is also working on digital diamond seriously, such that robots will attend to customers in his banking halls.
Nigero-Chinese bank.
What do u expect from a bank without integrity, all the clueless MD channel his energy to is the diamond mobileapp he does not know what it takes to get customers for the bank. He is simply put a failure big 1.
Non adherence to prudential guidelines is one problem I see here. Diamond Bank cannot use TSA as an excuse because they’ve been into retail for a very long time.
Alex Otti departs from Diamond and in less than two months the bank is facing challenges. Just tells you how good he was. And of course how average Uzoma Dozie is.