LSE:DBPA

Stock Analysis Report

Executive Summary

As of March 19, 2019, Diamond Bank Plc was acquired by Access Bank Plc.

Rewards

Earnings are forecast to grow 46.51% per year

Risk Analysis

No risks detected for DBPA from our risk checks.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Diamond Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DBPA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

DBPA

-4.1%

GB Banks

-4.4%

GB Market


1 Year Return

0%

DBPA

-11.3%

GB Banks

1.4%

GB Market

Return vs Industry: DBPA matched the UK Banks industry which returned -0.2% over the past year.

Return vs Market: DBPA underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

DBPAIndustryMarket
7 Day0%-4.1%-4.4%
30 Day0%-8.0%-6.3%
90 Day0%-9.1%-2.7%
1 Year0%0%-6.8%-11.3%6.7%1.4%
3 Year0%0%-10.1%-20.4%12.6%-1.5%
5 Year4.6%0%-6.7%-24.6%28.8%-0.7%

Price Volatility Vs. Market

How volatile is Diamond Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Diamond Bank undervalued compared to its fair value and its price relative to the market?

127.92x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DBPA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DBPA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DBPA is unprofitable, so we can't compare its PE Ratio to the Banks industry average.

PE vs Market: DBPA is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DBPA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DBPA is overvalued based on its PB Ratio (127.9x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Diamond Bank forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

46.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DBPA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: DBPA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DBPA's is expected to become profitable in the next 3 years.

Revenue vs Market: Insufficient data to determine if DBPA's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if DBPA's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DBPA's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Diamond Bank performed over the past 5 years?

-66.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DBPA is currently unprofitable.

Growing Profit Margin: DBPA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DBPA is unprofitable, and losses have increased over the past 5 years at a rate of -66.8% per year.

Accelerating Growth: Unable to compare DBPA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DBPA is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (28.3%).


Return on Equity

High ROE: DBPA has a negative Return on Equity (-6.47%), as it is currently unprofitable.


Next Steps

Financial Health

How is Diamond Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: DBPA has a low level of unsold assets or inventory.

Debt Coverage by Assets: DBPA's debt is covered by short term assets (assets are 2.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DBPA has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: DBPA has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: DBPA's level of assets compared to its equity is low.

Allowance for Bad Loans: DBPA has a low allowance for bad loans.

Low Risk Liabilities: DBPA's liabilities are made up of primarily low risk sources of funding.

Loan Level: DBPA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DBPA's loans are broadly funded by customer deposits.

Level of Bad Loans: DBPA has a high level of bad loans (14.73%)


Next Steps

Dividend

What is Diamond Bank's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DBPA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DBPA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DBPA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DBPA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DBPA's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Uzoma Dozie (49yo)

4.4yrs

Tenure

Mr. Uzoma Chuckwumaeze Dozie has been Chief Executive Officer at Commonwealth Trade Bank Plc since October 2018, Group Managing Director since 2019 and also serves as its Director. Mr. Dozie started his ba ...


Leadership Team

NamePositionTenureCompensationOwnership
Uzoma Dozie
CEO, Group MD & Director4.4yrsno datano data
Chiugo Ndubisi
CFO & Executive Director2.3yrsno datano data
Alex Alozie
Head of Operations2.7yrsno datano data
Lanre Bamisebi
Chief Information Officer & Head of IT Services2.8yrsno datano data
Inyang Etim
Head of Administration0yrsno datano data
Ifeatu Onwuasoanya
Head of Investor Relations0yrsno datano data
Femi Jaiyeola
Chief Compliance Officer2.4yrsno datano data
Uzoma Uja
Company Secretary & Legal Adviser1.8yrsno datano data
Chioma Afe
Head of Corporate Communications2.6yrsno datano data
Ogechi Altraide
Head of Sales0yrsno datano data

2.7yrs

Average Tenure

Experienced Management: DBPA's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Uzoma Dozie
CEO, Group MD & Director4.4yrsno datano data
Chiugo Ndubisi
CFO & Executive Director2.3yrsno datano data
Chizoma Okoli
Executive Director of Business Banking Division & Director2.4yrsno datano data
Caroline Anyanwu
Deputy MD8.3yrsno datano data
Dele Babade
Acting Chairman0.3yrsno datano data
Kabir Mohammed
Non Executive Director6.3yrsno datano data
Idris Mohammed
Non-Executive Director0.7yrsno datano data
Christopher Ubosi
Non-Executive Director1.4yrsno datano data

2.3yrs

Average Tenure

Experienced Board: DBPA's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Diamond Bank Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Diamond Bank Plc
  • Ticker: DBPA
  • Exchange: LSE
  • Founded: 1990
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$56.048b
  • Shares outstanding: 23.16b
  • Website: https://www.diamondbank.com

Number of Employees


Location

  • Diamond Bank Plc
  • PGD's Place
  • Plot 4, Block V
  • Lagos
  • Nigeria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DBPALSE (London Stock Exchange)GDR 144AGBUSDDec 2007

Biography

As of March 19, 2019, Diamond Bank Plc was acquired by Access Bank Plc. Diamond Bank Plc, together with its subsidiary, provides banking and other financial services to corporate and individual customers in Nigeria, rest of West Africa, and Europe. The company operates through four segments: Treasury, Business Banking, Retail Banking, and Corporate Banking. It offers investment, commercial and retail banking, securities dealing, and custodian services. The company’s personal banking products and services include current and savings accounts, as well as term deposits; consumer loans, such as personal, auto, mortgage, pay day, and school fees loans, as well as asset leasing services; debit and credit cards; and agency and merchant services. Its business banking products and services comprise current and currency accounts; emerging businesses revolving and installment loans, and loans for the healthcare sector; local purchase order, import, and contract finance services, as well as revolving credit; and treasury bills and investment notes. In addition, the company offers guarantees, letters of credit, trade finance, and trade collection services; foreign exchange and cash management services; insurance products; and payment, online and electronic banking, and money transfer services. Diamond Bank Plc was incorporated in 1990 and is headquartered in Lagos, Nigeria. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/04/16 21:21
End of Day Share Price2019/04/16 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.