Bloomberg News

Nigeria’s Diamond Bank Up for 5th Day on 2012 Income Outlook

February 03, 2012

(Updates with analyst comment in third paragraph.)

Feb. 3 (Bloomberg) -- Diamond Bank Plc, a Nigerian lender, jumped for a fifth straight day to its longest rising streak in more than five months after investors bet earnings will grow in 2012, Renaissance capital said.

The stock added 2.3 percent to 2.67 naira by the 2:30 p.m. close in Lagos, taking its gain this year to 39 percent, compared with a 0.6 percent increase in the Nigerian Stock Exchange All-Share Index.

“Investors are betting on a 2012 recovery in Diamond’s earnings,” Adesoji Solanke, Lagos-based Africa banking analyst at Rencap, said. The expectation is based on “management’s guidance for a cleaner balance sheet and asset-quality matrix going into 2012,” he said.

Diamond expects a loss of about 454.4 million naira ($2.8 million) for the fourth quarter through December, it said on Sept. 8. Nigeria’s central bank implemented reforms following a debt crisis in 2008 and 2009 triggered by loans given to stock market speculators. The banking regulator introduced December as a common year-end for the country’s lenders. Full-year 2011 results are expected to be released from the end of February.

--Editors: Ash Kumar, Linda Shen

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net


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