Speaking the Nations Mind

Four Diamond Bank Directors Resigns

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Four Diamond Bank directors quit with immediate effect, the bank said on Wednesday, paving the way for new investors to recapitalise the Nigerian mid-tier lender.

Local lenders have been trying to raise fresh capital after huge loan losses worsened by an economy that has just recovered from a recession. The crisis turned a once lucrative oil sector loan book sour with banks looking for new avenues to make money.

Two banking sources told Reuters that the lender was in talks with new investors. Diamond Bank said chairman Oluseyi Bickersteth and three other directors have resigned.

It did not provide any reason for the resignation of Bickersteth, appointed in July, or for the other directors, but said in a statement to the local bourse that it would update the market in due course.

Shares rose to their highest in almost two months in late trading, gaining 9.45 percent, valuing the lender at 32.19 billion naira.

“The bank has been facing capital challenges which has been a major drawback for the share price. With a new investor coming on board that has boosted confidence,” one trader said.

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