The Central Bank of Nigeria (CBN) has granted Diamond Bank approval to operate as a national bank with immediate effect.
In a statement at the weekend, CBN said the move followed Diamond Bank’s decision to sell its international operations, which included disposal of its West African Subsidiary in 2017 and Diamond Bank UK (DB UK Plc), the sale of which is currently in its final stage.
With this approval, the bank will cease to operate as an international bank.
“The change to 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.
“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,” it stated.
Commenting on the development, the CEO of Diamond Bank, Uzoma Dozie, 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 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.”
In the statement, Diamond Bank added that the re-licensing as a national bank supported its objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market and the Nigerian economy as a whole.
“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 (Forex) generated from its internal operations, a reflection of the solidity of its operations and funds flow in the last few years,” the Diamond Bank stated.