By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Diamond Bank Plc on Wednesday reported a N25.4 billion non performing loan (NPL) in the bank’s facts behind the offer at the Nigerian Stock Exchange (NSE) in Lagos Nigeria.

Alex Otti, group managing director/chief executive officer (GMD/CEO) of the bank said NPL ratio stood at 4.6 percent in June 2014 from 3.5 percent in December 2013.

He affirmed that cover NPL coverage ratio declined to 102.7 percent in half year (H1) period 2014 from 116.1 percent in the 2013 financial year end.

According to the banks chief, loans and advances to banks increased 125.9 percent to N292.3 billion in H1 2014 from N129.4 billion in the 2013 audited year end.

While loans and advances to customers climbed slightly 9.7 percent to N756 billion in the H1 of 2014 from N689.2 percent in the 2013 financial year end.

‘’Net loan book of N756 billion, up 10 percent from December 2013 (N689 billion) primarily reflecting growth in volume of business,’’ he said.

A review of the banks 2014 H1 financial statement shows that gross earnings climbed up 14 percent to N98.3 billion from NN86.5 billion in the same period of 2013 on the back of 16 percent increase in other income fees and commission and 12 percent growth in interest income.

Profit after tax (PAT) grew 9.5 percent to N13.8 billion in the H1 of 2014 from N12.6 billion in the corresponding period of 2013.

While profit before tax (PBT) declined 8.5 percent to N16 billion in the H1 of 2014 from N17.6 billion in the same period of 2013.

The bank is seeking to raise N50.37 billion ($305 million) via rights issue by offering  a total of 8,685,145,863 ordinary shares of 50 kobo each to its shareholders in the ratio of three new ordinary shares for every five ordinary shares held as of June 13, 2014 at N5.80 per share.

The offer which opened Wednesday July 30, 2014 will close Tuesday August 26, 2014.