|Bonus and Dividends|
The bank did not pay dividend in the 2005 financial year because part of the bank's strategy to meet the N25bn capital base prescribed by the CBN was to capitalize 100% of its PAT for the FY 2005. Consequently, the bank capitalized the PAT of N2.5bn recorded for the financial year ended 30th April 2005.
The bank did not pay dividend in the 2005 financial year because part of the bank's strategy to meet the N25bn capital base prescribed by the CBN was to capitalize 100% of its PAT for the FY 2005.
At the end of 2006 Financial year on 30th April 2006,the bank's shareholders' funds was already N35.0bn,but the CBN declined the bank's proposal to pay dividend to it's shareholders simply in compliance with a statutory provision that precludes bank's with unamortized intangibles in their books from paying dividend. Diamond Bank Plc had acquired Lion Bank Plc with effect from November 1, 2005 and had generated goodwill on acquisition which as at 30th April 2006 had an unamortized balance of N4.18bn.
In the financial year ending 30th April 2007, the bank declared a dividend of 55kobo per share and a bonus issue of 1:10, and 56kobo per share in the preceding period. A dividend of 9kobo per share was also declared in the period ended 30th April, 2009.
Diamond Bank changed its financial year end from 30th April to 31st December in compliance with the CBN directive that all banks in Nigeria should maintain a common year end by 31st December, 2009. This resulted to an 8-months financial period that witnessed the global recession which affected the banking industry globally hence no dividend was declared. As the economy improves the bank is spurred to reward its shareholders.