Diamond Bank put UK subsidiary up for sale as part of its plan to focus on the core Nigerian market

NIGERIA'S Diamond Bank has announced plans to sell off its UK banking operations and concentrate on its primary business of retail banking as part of a restructuring programme involving the disposal of non-core operations.

Like most other Nigerian banks, Diamond Bank has a UK subsidiary which deals with corporate banking and the interests of affluent customers. However, these operations account for a small percentage of the banks' activities and as such several have taken the decision to dispose of such subsidiaries.

Diamond Bank has subsequently signed a share sale and purchase agreement with a member of the GFG Alliance, for the disposal of its entire shareholding in Diamond Bank UK. Completion of the transaction is subject to approval from the Financial Conduct Authority and Prudential Regulatory Authority, the regulators responsible for banking in the UK.

According to Diamond Bank, it will now focus exclusively on Nigeria as it seeks to capitalise on the vast growth opportunities presented. This includes macro fundamentals such as Nigeria’s changing lifestyle preferences in favour of mobile delivered services and an emerging culture of innovation and tech-enabled entrepreneurship.

Already, Diamond Bank has sold its West African business operations across Benin, Togo, Ivory Coast and Senegal in November 2017 in order to focus on Nigeria. Subject to the UK deal completing, Diamond Bank will have no remaining international subsidiaries leaving it to focus solely on Nigeria.

Diamond Bank’s chief executive Uzoma Dozie said: “Diamond Bank’s strategic objective is to be the fastest growing and most profitable technology-driven retail banking franchise in Nigeria. This strategic intent requires us to optimise resources by divesting from non-core assets and focusing exclusively on the Nigeria’s highly attractive market.

“The commercial opportunities for Diamond Bank in Nigeria are vast, due to its positive fundamentals including millions of people who are either under-banked or unbanked, high mobile phone penetration and the continent’s largest economy. Significantly, Diamond Bank has already laid the foundation for growth in Nigeria with an acquisition of over 15m customers, many of whom are owning bank accounts for the first time."

According to Mr Dozie, the sale of international subsidiaries is not expected to cause service disruptions for international customers, as they will continue to enjoy enhanced and convenient banking services through Diamond Bank’s digital channels. Diamond Bank commenced operations as a private limited liability company on March 21, 1991 and in May 2005, it was listed on the Nigerian Stock Exchange.