Diamond Bank reports 77.9% Net Income decline while 4.2% Revenue growth
27 Apr 2016 • About Diamond Bank (
$DBPA) • By InTwits
Diamond Bank reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Diamond Bank doesn't have a profitable business model yet: 2015 ROIC is 1.5%
- Diamond Bank has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.7%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: 25,769 in FY2015, 47,237 in FY2014, 9,927 in FY2013, 9,260 in FY2012, 10,554 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.5%
- It operates with high leverage: Net Debt/EBITDA is 5.1x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Diamond Bank ($DBPA) key annual financial indicators
| mln. NGN | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 106,774 | 137,402 | 180,114 | 208,402 | 217,092 | 4.2% |
| Net Income | -13,730 | 22,141 | 28,576 | 25,409 | 5,616 | -77.9% |
Balance Sheet
|
|---|
| Cash | 55,784 | 132,196 | 228,322 | 301,393 | 361,167 | 19.8% |
| Short Term Debt | 33,825 | 36,111 | 54,579 | 68,760 | 115,820 | 68.4% |
| Long Term Debt | 42,035 | 64,431 | 68,395 | 106,496 | 141,297 | 32.7% |
Cash flow
|
|---|
| Capex | 10,158 | 11,305 | 14,211 | 12,413 | 14,623 | 17.8% |
Ratios
|
|---|
| Revenue growth | 17.3% | 28.7% | 31.1% | 15.7% | 4.2% | |
| Net Income Margin | -12.9% | 16.1% | 15.9% | 12.2% | 2.6% | -9.6% |
| CAPEX, % of revenue | 9.5% | 8.2% | 7.9% | 6.0% | 6.7% | 0.8% |
| ROIC | -9.5% | 12.7% | 12.4% | 8.0% | 1.5% | -6.5% |
| ROE | -14.3% | 22.8% | 23.1% | 14.6% | 2.7% | -12.0% |
Revenue and profitability
The company's Revenue increased on 4.2% in 2015.
Net Income marign decreased on 9.6 pp from 12.2% to 2.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Diamond Bank had CAPEX/Revenue of 6.7%. Diamond Bank's CAPEX/Revenue decreased slightly on 1.5 pp from 8.2% in 2012 to 6.7% in 2015. Average CAPEX/Revenue for the last three years was 6.9%.
Return on investment
The company operates at low ROIC (1.52%) and ROE (2.65%). ROIC decreased on 6.5 pp from 8.0% to 1.5% in 2015. ROE dropped on 12.0 pp from 14.6% to 2.7% in 2015.
Leverage (Debt)
Debt surged on 46.7% in 2015 while cash surged on 19.8% in 2015.
Appendix 1: Peers in Banks
Below you can find Diamond Bank benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kazkommertsbank JSC ($KKB) | | | 6.0% | 16.3% | 41.4% |
| Sberbank Of Russia ($SBER) | | 37.2% | 25.1% | 23.4% | 27.4% |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 37.6% | 23.7% | 18.9% | 26.8% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 14.9% | 4.8% | 19.7% | 25.3% |
| Mcb Bank Ltd ($MCBS) | | 3.0% | -1.7% | 19.4% | 22.4% |
| |
|---|
| Median (42 companies) | 9.5% | 9.3% | 4.2% | 11.5% | 5.3% |
|---|
| Diamond Bank ($DBPA) | | | 31.1% | 15.7% | 4.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 10.4% | 3.7% | 9.7% | 4.3% | 26.8% |
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | 7.7% |
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | 4.1% | 5.1% | 3.8% | 4.5% | 6.0% |
| |
|---|
| Median (40 companies) | 2.3% | 2.2% | 2.7% | 2.1% | 2.5% |
|---|
| Diamond Bank ($DBPA) | | 8.2% | 7.9% | 6.0% | 6.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | 30.3% |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | 16.0% |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | 14.9% |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | 12.6% |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | 11.2% |
| |
|---|
| Median (42 companies) | 6.9% | 6.0% | 5.3% | 4.4% | 3.5% |
|---|
| Diamond Bank ($DBPA) | | 12.7% | 12.4% | 8.0% | 1.5% |
