TheCable

Shareholders of Diamond Bank have expressed their dissatisfaction over the N7.99 million paid by the bank as penalties to the Central Bank of Nigeria (CBN) during the financial year ended December 31, 2013 for several infractions.

The shareholders made their position known at the bank’s 23rd Annual General Meeting (AGM) in Lagos today.

A breakdown of the infractions showed that the bank paid a fine of N2 million for the delay in refunding a customer the sum of 827,223 dollars, as directed by the CBN.

It was fined N4 million for promoting two senior management personnel without the approval of the CBN.

The bank also paid a penalty of N1.99 million for withholding a customer’s funds for 26 days, after the promoters of the customer had written to inform the bank that they were no longer interested in the facility.

Speaking at the AGM, Mr Sunny Nwosu, national coordinator of the Independent Shareholders Association of Nigeria (ISAN), urged the bank to “stop working for CBN,” warning it to be more careful in the future to avoid waste of shareholders’ funds.

The shareholders, however, approved the payment of 30k dividend proposed by the bank and also authorised the board and management to float rights issue of 500 million dollars or its naira equivalent to support the bank’s operations.

Dr. Alex Otti, the bank’s group managing director, said that the additional capital would improve the competitiveness of the bank. He also assured the shareholders that dividends would be paid annually.

The bank’s financial statement for the financial year ended December 31, 2013 shows a gross earning of N181.2 billion against N138.8 billion achieved in 2012 and a profit after tax of N28.5 billion compared with N22.1 billion recorded in 2012.