Diamond Bank Sells UK Arm, Says To Concentrate On Nigerian Market

At a time it is fast becoming fashionable for its peers to make inroad into the United Kingdom in view of the competition of the future, the board of Diamond Bank, on Wednesday announced sealing a Share Sale and Purchase Agreement to sell its entire stake in that country.
In a statement to the Nigerian Stock Exchange (NSE), Diamond Bank said its entire shareholding in Diamond Bank (UK) Plc is being sold to a member of GFG Alliance for an undisclosed amount.

The statement, signed by Uzoma Uja, the company Secretary and Legal Adviser, said “the disposal is in line with (Diamond) Bank’s objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market.”
The decision to focus on the Nigerian market, the bank said arises from the vast potential therein, due to its strong fundamentals, “including millions of people who are either underbanked or unbanked, and changing lifestyles that favour the use of mobile devices to complete multiple financial transactions at the consumer’s convenience.

This is also underpinned by significant economic potential driven by an entrepreneurial spirit, and a growing culture of innovation.”
Diamond Bank said both parties “are committed to, and are pursuing a quick completion of the transaction subject to approval of the Financial Conduct Authority and Prudential Regulation Authority who regulate banking business in the United Kingdom.”
The sale of the UK arm is coming shortly after the bank’s divestment from its West African business completed in November 2017.
Commenting on the transaction, Diamond Bank’s Chief Executive Officer, 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 the Bank to optimize the use of its resources which means, where necessary, divesting from its non-core assets, and focusing on the priority area, namely Nigerian retail banking.
In recent years, the bank said it has laid the foundation for growth in Nigeria with acquisition of over 15m customers, many of whom are owning bank accounts for the first time.

By harnessing technology and fostering a digitally led approach, the bank says it will have further positive impact on the overall development of the financial system, and the Nigerian economy in general.
The sale of the international subsidiaries, the statement assured, “is not expected to cause service disruptions for the bank’s customers located around the world as they can continue to enjoy enhanced and convenient banking services through the Bank’s digital channels.

https://investdata.com.ng/2018/04/diamond-bank-sells-uk-arm-says-concentrate-nigerian-market/