The Last Transactions That Collapsed Diamond Bank
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- Опубликовано: 23 авг 2024
- Diamond Bank finally collapsed in 2018. But before then, so many things had happened, which placed the banking in the blink of a collapse.
Take for example, the resignation of Dr. Alex Otti as the Group Managing Director of Diamond Bank, the 125 million dollars loan from GT Bank, among other things.
Before these transactions, the expectation was that Diamond Bank would grow and become the major financial powerhouse, in Nigeria and beyond.
Check out to see for yourself how few transactions collapsed the bank.
#diamondbank #alexotti #banktransactions #mtn 
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It's difficult to build wealth but more difficult to maintain it. One wrong decision and you're losing all in a blink. So crazy 😢
It's so crªzy, bro.
Wrong decisions have k1lled many good dreams and good businesses.
@@Ucheolisa This is what happens when your business thrives on the image of one man or on the effort of one man....cos when that one man leaves, it falls
@youcand.i.y7081 You are right. There was no other good hand to take over from the man when he left.
Probably because they didn't groom better hands to learn the trade, or because his departure came too soon.
@@Ucheolisatoo soon???? Wasn’t he with the bank for over 6-7 years??? That’s more than enough time to teach anyone 1-6 subjects even if you spend 1 year on one subject.
@Biobele he was in Diamond Bank for 3 years.
Although 3 years is even enough to build up more hands, I doubt if they considered that. Or maybe they had concluded that Uzoma was good enough to take over.
I love Nigerian business stories, but it's so difficult to get it on RUclips. Please keep it up, I'm already a fan.
Thank you and welcome, Ugo.
Have you seen the one I did about Dangote?
You can check it out.
It is titled 'The Dark Secret of Dangote's Wealth'.
@@Ucheolisa yes just did.🏌🏽♂️❤️
Okay.
Thank you so much.
@ucheolisa I second this
Thank you, Bama.
I will dropping more.
Although the next one coming up is about the Nigerian military, but I believe you will like it. After then, it would be Nigerian and African business stories all through.
I love this!!! Business and life lessons to learn.
One major lesson for me, no go collect loan in dollars wen you dey earn naira oooooo…
Yeah, it has affected many businesses. And we the new business owners should learn from it.
Great job. Otti was the best thing that ever happened to Diamond Bank. I worked under him & also under Uzoma. However, Access bank was not considered a smaller bank than Diamond Bank back then as stated at the end of the video. Access bank had already acquired Intercontinental Bank way back and was a bigger bank, ranked amongst the top 3. Wigwe had the experience that Uzoma could never boast of. Diamond was however among the top 5 & had more branches nationwide than Access.
Yeah, if you listened to it carefully, you would understand that what I stated was that when the announcement was made, THE QUESTION ON THE LIPS OF MANY NIGERIANS WAS, HOW DID DIAMOND BANK FALL SO LOW THAT A SMALLER BANK LIKE ACCESS BANK COULD BUY IT UP.
To a lay Nigerian then, those who asked this question, Diamond was the bigger bank because according to what they could see, Diamond had more branches, more customers, and was more popular.
A Nigerian market woman does not know that Access had more capital base.
All they cared for, to determine a big bank, is the number of branches, which to them, reveals how big the bank is.
@@Ucheolisa ok bro. I understand that point.
Diamond bank is a good example of how not to put family in charge of a business especially if they are not qualified to man the said position. Uzoma was not in anyway qualified to run a banking behemoth like Diamond Bank.
You got the point. It is always hard to find a prudent family member to run a business, after the founder retired or passed away.
Expect if the person had proven his or her capacity beyond doubt. Or if the person was there during the founding years and was indoctrinated on how to run the business.
Just splendid.
Exactly the kind of content we need about Nigerian businesses, what the various players did and how we can learn from them.
Please keep giving them to us.
Thank you.
Okay, bro.
I will be dropping more.
It is rather sad. Diamond bank was my favourite bank. The service and atmosphere when you went in was unmatched. Sometimes too many things go wrong at the same time with little margins for correction. The disposal of all the shares of a foreign investment group (Actis) most times shows the bank was already on shaking grounds at that time.
Yes, by when the Actis shares were considered to be sold, there were already internal management issues and disagreements going on in the bank.
I've also learnt that this is why it's important to let go of management who have been in a company for too long. They can become a cancer in the midst.
Greed and corporate leadership incompetence bred this catastrophic dilemma. After declining to take up the offer of first refusal from ACTIS COMPANY, the family may have gone back to pressurize the man (Chief Paschal Dozie) to approach GTBank for an unnecessary dollar-denominated loan facility to buy the off-loaded Diamond Bank shares of the ACTIS GROUP. That was the first and major wrong decision the family took, seconded by allowing their less-experienced son to manage such a blossoming bank, then. Being a corporate inheritance, the family should have thoroughly profiled their son's character, competence, and experience before handing over such a daunting leadership responsibility to him. Character is extremely very important at such an ultra-sensitive leadership level.
You are right. His sons might have gone back to pressure him to buy the shares.
And you know, buying the shares means they have more stake in decision-making, which will give them more votes when the idea to make Uzoma the CEO came up.
According to some reports, many people were against him taking over, which also made some relevant hands in the bank to resign.
Placing your person family member in a position where they are not competent and experienced enough to handle, and ignoring the best people for the position.
Not their only error but probably a serious one in the scheme of things.
It's a mistake many business owners make, probably not limited to Nigeria. Its a pity they made this error in running such a major business.
The interference was too much from the family
@user-lg4ql6rk6m they were doing it just to have more control of the bank.
But it didn't work out as planned.
Research shows most children doesn’t know how to mange bank unlike a trained experts in banking field. Bank is different from just a business/enterprise bcos Bank is a very huge investment which absorbs all business transactions
These are business stories we must learn from and how old money could not be sustained by the next generation
Yeah, there are so many businesses that have gone down, because the new generation could not handle it.
@@Ucheolisa not because they can't handle it. The founder would have allowed Alex Otti buy the Actis stake and allowed manage the bank to better day. Remember Diamond Bank brought integrated banking to Nigeria where you could deposit and withdraw from any part the world. They allowed greed and the sons evidential mismanagement to take over their thinking not saving their empire; The replica of what is happening to heritage bank and the rest.
This wasn't about old money not being sustained. Papa started Diamond when he was in his 50's. This is more about understanding the power of management and board of directors. Selecting the right people is very important.
They were highly wise to save the whole situation and finally no one could say diamond bank collapsed
Yeah, they managed it well.
So that the public won't panic.
Beautiful corporate story telling. Thanks for breaking it down like this
Thank you so much, Ihesiulo.
I appreciate your kind words.
Don't be to fast to put your family into your business
Very important note.
Because they will feel very free to do what they like. Knowing that they won't be punished like others.
Founding a company takes ideas and vision
Being a CEO however requires a very different set of rules
Sure, management is a very big deal. A single bad decision can bring down years of work.
I recently started watching all these niche’s that have to do with mystery and certain events, and this came up, and I want to tell you i love your edits and how you’re well spoken! Only up from here bro!📈
Wow, thanks so much.
I am happy that my work was able to meet your taste, and I appreciate every kind word you used here.
Thank you so much. This motivates me.
So, the bad economic situation paved way for the collapse of Diamond bank not necessarily mismanagement.
This is quite insightful
Yeah, the bad economic situation played a part. But remember that the economic situation went bad from 2015/2016. Before then, the back was already into some bad deals, and Alex Otti had left.
But the economy was uniformly bad across board for all. It was poor management decisions starting from when the sale to Obiejesi fell through due to too much desire to control. The Dozies were victims of this unwillingness to dilute ownership by spreading risk and this concentration of risk led to all else narrated. They saved Obiejesi big time. We all would have continued to see PGD as the godfather. It's a lesson to us all.
@henriinwanguma8762 It is a very big lesson to every business owner and manager.
Thank you, Henri.
@@henriinwanguma8762 Exactly. It is straight forward mismanagement or poor risk management. He could have shared the risk by buying a lesser share from Obiejesi etc.
@@henriinwanguma8762Your analysis is on point bro
Beautifully presented and well analysed. Lovely, sir
Thank you so much, Elliot.
You earned yourself a new subscriber , keep it up with more business stories.
You're wise and your documentation is well coordinated. You have brighter days ahead 💯
Thank you so much, Albabs.
I appreciate the motivation and the compliment 🙏
A case study for "Transgenerational Leadership". Critical for continuity. Not just withing families, but within organizations too.
This Video Is Professionally Created. Thank You
Thank you so much, Hussaini.
Educative content 🔥🔥🔥🔥
We want more of these amazing videos
Thanks.
I will dropping more.
Another is coming up next week.
Thank you for this enlightened documentary, we need more contents like this.
Just discovering this channel. You deserve a subscription
Thank you too, Sir.
I appreciate your presence.
Otti is reallly something
Thanks very much sir, I just subscribed.
This is a good and worthy information behind the failure of diamond bank .
Thank you so much, Mr Stanley.
I appreciate your presence, and the compliment.
Thank you for your fantastic elucidation of what happened. God bless you. Now we know.
God bless you too, Wole.
This was well narrated, thanks for doing the video
Wow
Thanks so much, boss.
We are learning from you.
Amazing work bro … detailed no editing is top notch. I just subscribed 👍. More grease to your elbows
Wow, Seun, thank you, bro.
I watched and commented on your video a while ago.
There are so many interesting Ngerian business stories to be covered and no one has taken the initiative too. Well done. Here are some other ones you can cover -
From Zenon to Forte Oil to Geregu - Femi Otedola's journey
The Standard Trust Bank - UBA Merger
How two GTBank ED's took over Access Bank
The fall of BGL securities
Thank you, Chike, for the suggestions.
I have never considered doing anything on Zenon to Forte Oil to Geregu, nor the Standard and UBA merger.
I barely know about GT Bank ED's takeover and the fall of BGL.
I am much as happy, to get these suggestions.
Moreso, I have something about Stanbic IBTC and Atedo Peterside, Folorunsho Alakija and her oil journey, the cement war in Nigeria, and a whole lot.
I am glad to be adding these new suggestions to the list of scripts to work on.
I appreciate your presence here.
Thank you, Chike.
I wish you understand how much encouraged I feel, reading this your comment.
@@Ucheolisa Awesome. Anticipating your videos on these suggestions
Okay, sir.
Thank you.
I love how detailed and professional you were about this project. Thank you.
Thank you so much, Mr Seyi.
I have subscribed and liked the video too. Cool information you just shared. Thank you.
Thank you, David.
Brilliant videography and excellent narration. Your captivating delivery of this fascinating story in unadulterated Nigerian English was flawless and kept me spellbound while I ate akpu and egusi. This is beyond good Uche, this is great. You have set the bar high, I hope you keep it up there.
As for Pa Dozie, an astute businessman of decades' experience, who weathered the tumultuous regimes of the 80s and 90s, to make make such a damning move is something that needs to be studied in business school.
I am just learning that Alex Otti ran Diamond Bank in its glory years. He has always been outstanding. I wonder if Pa Dozie made any offers to coax him to stay.
Thank you so much, Bassey.
I will definitely keep the bar high. I discovered people love the video, so, I will continue to do better.
I have another one coming up next week.
Moreso, to my calculation, it was hard to convince Otti to stay, because he had already declared his intention to contest for Abia state governorship. That was in 2015, when it was time to elect a new governor, and Otti wanted to run on the platform of APGA. He saw it as a golden opportunity to achieve his dream, although it didn't work out either.
This is beautiful. I enjoyed the documentary. Thank you. GOD be with you.
Thank you, too.
I appreciate that you enjoyed it.
And may God be with you, too.
@@Ucheolisa Amen.
Thank you. I just subscribed. Please make more videos on Nigerian business stories. Great job!
Just curious, why did Otti resign? Was it because he wanted to run for governorship or something else? Any idea why he resigned?
Thank you, Sir Femi.
I appreciate your presence here.
Yeah, Otti resigned to contest for governor in 2015. That was the major reason. He wanted to go into politics and saw that opportunity in 2015, as the best opportunity to start his political journey.
I put him close to 15 years in this institution, and what we built was impressive, especially during the time of Otti. This story is 100% correct. The leadership of Uzoma smacked of incompetence. He directed the focus of the bank to retail allocating over 60% of the bank resources in this unchatted territory to the point that the bank was not making money to meet all its obligations despite being designated as too big to fail by the CBN. The story and demise of Diamond was an emotional one for many of the staff and customers of the bank. I could write endlessly on great innovations spearheaded by Diamond bank, which today are the bricks of the Nigerian financial system. Continue to rest in peace, our dear Diamond😮
Wow, you spent close to 15 years in Diamond?
You obviously saw it all.
The good and the bad days.
Diamond Bank....my first and only corporate job in Nigeria....saw the writing on the wall when the first executive board left.....may you continue to rest in glory😢
@kenhugo938 That mrans the signs for the fall was already there before it happened?
@@Ucheolisa Yes....i joined Diamond and i had the opportunity to meet members of the board during my orientation. I was truly inspired by their banking ethics they pushed which represented what banking was under the old British Banking standards,not the cowboy banking that was prevalent then under Standard Trust Bank and others. Infact, meeting them kind of polished me though i wasn't a banker at heart. However, within three years of my joining all these executive board members who started the bank with Paschal Dozie have left and i started hearing some crazy stories happening in the Treasury Department. It made me loose faith and i never bought shares in the Bank during the 2005 bank recapitalisation exercise even when i am an avid investor and bought shares in GTB and Zenith. When, sentiments is played in business, the business entity is on borrowed time.😥
Algo just suggested your video to me brother.... All I have to say is keep doing what you do and be consistent brother....❤❤❤❤❤
You're on the right track and within some months, your going to be large on here..
But I have a suggestion, COVER STORIES OF FOREIGN COUNTRIES TO, will attract foreign audience.
I'm rooting for u
Thank you so much, sir.
I really appreciate the compliments. It means a lot to me.
Thank you too for the suggestion, I will consider that.
Why I started talking about issues that concern only Africa, was that I noticed that not too many people talk about our motherland, especially when it comes to history and business. That's why I started from there.
I will consider your suggestion.
Thank you so much, once again. I feel empowered.
I always wondered how Access Bank could buy Diamond Bank which was more pronounced in the Banking space. Now I know what really went down. Thank you Ucheolisa.
Godsman, thank you so much, bro.
Yeah, Diamond suffered some bad deals and decisions, that's was how it came to a low, and Access bank bought it up.
In all of these, Nest Oil was not treated fairly. He must have raised monies he didn't really need by selling off shares or assets only to be denied the deal just 2 days to the signing.
Yeah, that was why he wanted tk take them to court.
Because such disappointment can affect a man's financial life. He may have sold things he kept for the future.
But he escaped the economic disaster later on. He is lucky after all said and done
Yeah
@@vandumen If he had been in charge, probably Diamond bank would have survived the way other banks survived. We cannot assume that heads or tail Diamond bank was going to fail. The bank failed because the wrong leadership was in charge.
Very informative
Thank you.
ucheolisa you are very kudo at telling stories, kudos
Thank you so much, I feel empowered.
Please more content on the Nigerian industry, from banking, telecoms, insurance, stock markets, pharmaceuticals etc.
Okay.
I will continue to do more.
Thank you for the suggestion.
Nestoil guy is very lucky 😊
Very very lucky.
Although it looked like a disappointment at first, but it late became an escape for him.
God saved him.
This is why we should never be too disappointed when things don't go our way. You never know what God is protecting you from.
@@Website_Blogs exactly
Very true @@Website_Blogs
Good analysis thanks.
Thank you too, Austin.
Thank you for this knowledge.
Thank you so much.
This beautiful storytelling. Please do more Nigerian businesses. Yo have gained a subscriber
Good storytelling... Looking forward to the next one!💪💪💪
Thank you, Seun.
Another one will be dropping next week.
This is very brilliant and enlightening. Gained a follower 🎉 kudos
Thank you so much, Nyere.
You are welcome, here.
Diamond bank was a one time power house in the industry
Yeah, back in those days, it was one of the top 3 biggest banks in Nigeria.
Bad business decisions. Family connections can ruin some business. They couldn't run the successful bank. What a great loss..
A very big loss.
I wasn't going to subscribe, but when you asked for it, I decided it will be ungrateful of me not to. I appreciate your hard work towards bring this content in all honesty. I'm a difficult person to please, but I give it to you, I am please with this content. Thanks for doing it.😊
Wow.
Thank you so much, DEGENEBABA.
I feel happy that I was able to please you the little, and you like the content, too.
I appreciate your presence here.
Thank you so much.
Thanks for the video. I'm a bit confused how a bank founded in 1991 has anything to do with banking issues in the east related to the civil war that took place in the 60s and 70s. I thought banks like diamond, zenith, GTBank, former standard trust bank, defunct intercontinental bank etc were founded around the same period due to deregulation of the banking industry.
Yeah, you are right.
The war ended in 1970. And by this 1970, Pascal Dozie was residing in Uganda. He left Uganda in 1971 and moved down to Nigeria.
Arriving in Nigeria, he discovered the issue faced by these Eastern traders. But he couldn't solve it instantly, firstly, he had no bank to provide solution to these traders. That was when he started planning on building a bank that would be friendly to traders. Like I said in the video, that was when the journey of Diamond bank started.
He was helping a few of the traders to solve some banking needs through his connections and knowledge of the financial system.
Later on, he launched a consulting company. Through the company, he was hired by CBN to conduct some studies.
By 1985, he found himself in the banking field, and became the chairman of Progress Bank. While at Progress Bank, he had amassed more resources and connections to get a banking licence. He then applied for a banking licence.
By 1991, the licence was approved, and Diamond Bank was born.
So, that was why I stated it the way I did, if I started explaining in details, I would have deviated from the story. I simply placed it, "he started the Diamond Bank journey when traders in Eastern Nigera..."
It was a journey, from 1971 till 1991.
@@Ucheolisa I see. I appreciate the prompt response and clarification.
@adon8672 You are welcome, sir.
I would also appreciate it, if you can follow for more. And ask pertinent questions, because such questions brings more clarification.
I appreciate your presence here.
@@Ucheolisa Noted. Subscribed.
@adon8672 Okay.
Thank you, sir.
Well done. More stories like this please
Thank you, Lizzy.
I will be posting more.
I have another that will drop in the next few days, it will be about the Nigerian military.
Bro i am subscribing to your channel immediately, this is a nice piece
Thank you so much, Jude.
I really appreciate.
The son transfered large stakes into MTN and sits at the helms of affairs in that corporation.
Smart move, top notch business acumen.
I never knew about that, tell me more.
Nicely researched and presented. Offers simple and good understanding of the underpinnings... Kudos!
Thank you so much, Timodele.
Thank you for this video.
Thank you too, sir, for coming around.
Thank you so much! This is quite enlightening!
Thank you so much, Chy.
Great video. Please do more of this to enlighten us.
Okay, Paschal.
I will continue to do more.
I have one that will be coming up next week.
Nice content bro first time on your page am impressed ✊
Thank you so much, Chuka.
You are welcome, here.
With this story, we have no choice but to give kudos to Ladi Balogun of FCMB.
Yeah, I even have a video I will do about Ladi, and how he founded FCMB.
Weldon keep it up .....
Thank you so much, Sir.
That’s the same way they will also sellout Nigeria one day. because Nigeria is gradually collapsing due to bad governance.
Everytime government!!!! Help only comes from oneself
Thank you for this knowledge bro.. keep it up
Thank you too.
I appreciate.
Great explanation I finally understand the whole thing
Thank you so much, sir.
I watch and subscribe from United States, please keep it up.
Thank you, Lawyer Henry.
I promise to keep it up.
I will be dropping another, in the coming few days.
Always wondered how Access which seemed to be a smaller bank at the time was able to aquire diamond bank, well now I know.... Great story telling
Nobody saw it coming, then. Until that announcement was made. Because back them, Diamond bank was one of the biggest boys in town, while Access was an upcoming big boy😁
Thank you so much, Oche.
Access was bigger than diamond and had always been bigger since 2012 acquisition of Intercontinental bank, the annual reports can confirm it, That's wrong information.
You have a great Channel. ... keep putting in work. Real Recognise Real 💯
Thank you so much, Drills.
I appreciate.
Diamond bank invested heavily in prrceived value. Which is a strategy that many start-ups use. The foreign investment thay had was spent in "showng" value rather than "creating value".
Nest oil would have saved diamond bank if the Dozie's haven't been stingy..Gtb coming to ask for there money back was what broke Diamond because the timing was bad and again Uzoma was so loud with no Brain to navigate the issues
Yeah, the Nest Oil deal would have served well for Diamond than the GT Bank loan.
At least he would not be disturbing them for payback.
@@Ucheolisa yes and such Embarrassment would have not befallen my best Bank.. Diamond was my Best Bank and my first I so much hated Access bank then just can't say the reasons though 😔
But learning that Late Wigwe was also an igbo man then I refused migrating to other Banks as a customer.now all Bank na bank now in as much my change is safe there.
But I don't think it is ordinary with what Access Bank were pulling because I could remember just like yesterday how they bought Intercontinental Bank another big Bank back then.
@okparamichael1690 not only you, back in those days, I disliked Access Bank. They just looked too colourful to me😄.
I was shocked to hear that Access bought Diamond, that was the day I started giving them their flowers.
Smart Nigerian channel
Thank you, Michael.
GREAT JOB MAN.VERY ANALYTICAL.
Thank you so much, Henry.
WOW, Great Narrative!!!
Thank you, AB.
great value added, very well done @Ucheolisa...i really like the intrigue and animated story telling, captured my full attention and absolutely worth my subscription. I'm a wannabbe multi-million dollars investor, so many vital lessons from this, i'll definitely be looking forward to more of your posts :)
Thank you so much, Joey.
I am happy that you like the video, and have some things to learn from it.
I will be posting more, and I appreciate your presence here.
Top notch documentary! Kudos ❤
Thank you, Collins.
Well done! Very informative content
Thank you, Kennedy.
Well put together. I'm aware of these things but no to this details. Keep it up.
Thank you so much, Stanley.
Lots of value
Thank you.
This is magnificent 👍
Thank you so much, Ogu.
Thank you, I love this kind of videos
Thank you, Heritage.
You are welcome, here.
I will be posting more.
Can you do another one that focuses on old industries too
The business acumen of the Igbos is unparalleled.
When it comes to business, the Igbos are good.
And this knowledge of business, is transferred from generation to generation.
I was waiting for this..😂 so the Family that lost their investments are Fulanis abi? 😂
@calebadeleye Nobody actually lost their investment. The investments were transferred to Access Bank.
The only people who got some heat, were the shareholders whose share values reduced.
Great video and excellent narration. Thanks so much.
I was wondering whether Actis saw something we all did not see. They staked out at the very right time. But, even before that, Dozie seem to have been pushing to take the helm. There shouldn’t have been a sale if they didn’t take that loan from GTbank. They probably would have weathered the Buhari economic storms.
Yeah, before then, there was some rumoured in-house disagreement between Actis and Mr Dozie. I couldn't get the fact, that's why I omitted it.
Surprisingly, in 2015, Actis bought majority shares in another Nigerian company, Sigma Pensions. So, it cannot be said that Actis was facing some financial blow, which was why they left Diamond Bank. It is certainly based on the secret disagreement.
This os great. I love it. You just earned a follower!
Thank you so much, Duke.
Morales:
1. Be a man of your words. Don't make promises to go back on them.
2. Don't be emotional with business decisions. It can be very tough to anyways
3. Indeed everything rises and falls on leadership.
Thank you, Isaac.
For bringing out some points from the video.
2011 was also a time when the global economy was buoyant. Uzoma was a cool guy, but he didn't assign the best team. He was more invested in the branding and marketing side of the business. He didn't have enough understanding about the other areas. Building a business is very different from sustaining one. He shouldn't have put his son in charge.
You understand it.
Although he may have made a good manager, but I don't think that by 2014, he was good enough to take over.
And just like you noted, he gave branding and marketing more concern. Instead of the actual business thing of management.
They should have known his strength, put him in a perfect department as head, and then make a more experienced person, the GMD.
@Ucheolisa business can be very emotional at times. I've learnt that myself. However, I've also learnt that having ten per cent of something is better than having 100%. The best leaders are those who are comfortable with not knowing everything. Ego ruins us.
@millieconsultancy Ego ruins us!
You obviously have learnt well about business. I am not surprised to see 'consultancy' attached to your name.
Please, your presence is needed here, I hope you have subscribed. I will be happy to read your reviews, because I will be dropping more and more business stories.
Very well thought out reporting
Thank you, Odunayo.
What I understand here is greed they wanted the full control of the bank now the have it and they don’t have enough experience to keep it
The reason why people bring investors sometimes is for there connections and experience and knowledge
Yeah, although it doesn't look as greed entirely, but there was some percentage of greed.
And I believe that they should have found someone close to what Otti could offer.
Interesting story but some technical issues are overlooked or perhaps not even understood. Firstly, in banking asset quality is a lagging indicator of failure. What that means is that by the time you see asset quality issues arise on the balance sheet and income statement it means that the damage had already been done a while ago. Diamond had many asset quality issues. And if those issues started showing in 2014/2015 it means that the assets were booked before then. My point here is simple, Uzoma Dozie was simply a scape goat. Diamond had already booked assets that became delinquent before Uzoma became MD. But because asset quality, typically measured by NPL ratio, is a lagging indicator, it did not show up until after Uzoma took the helm. Otti definitely has a lot to answer for the bank going down and i say this all sense of responsibility. Nice content regardless
Yeah, even before Otti came, there were some bad loans affecting the bank’s finances. Otti then wrote off most of them, and was able to manage them well. And still kept the bank on the line of profit.
To some extent, poor management played a major part when he left.
@Ucheolisa you don't understand. If there's a bad loan in a bank in 2015 or even 2016 its likely that loan was issues prior to 2014. Because large loans have moratorium periods were no payments are made. So before you see a missed payment on a loan, it's already at least 1 year after disbursement. I'm not saying Uzoma Dozie was the greatest administrator but he was not totally to blame for Diamond's failure. Otti also issued many facilities that became delinquent after he left. You pointed out some nice insights in your video, but trust me from a balance sheet perspective there's a lot more that went wrong and at the end of the day the failure of such a large bank is always a result of its balance sheet
I understand your point, a lot more went wrong behind the scene.
I understand you know how accounting and management work, whenever you inherit a position, you inherit both the assets and the liabilities.
That's just what happened.
Assuming it went on well, Uzoma would have taken the full glory. But unfortunately, it went the wrong way.
@Ucheolisa fair enough. To whom much is given much is also expected. I just feel bad for him that he wasn't able to turn it around. I doubt he will forgive himself for being the person that lost such a big family asset but oh well
@binizzy Yeah, he will never feel good anytime he remembers that his family business went down under his watch.
He even created an online banking platform called Sparkle, in 2019, immediately after the Acess takeover.
Maybe to revive his name and justify his banking prowess. But I don't know how it is currently going.
Fo videos like this and watch your channel grow.
I really love this content
Thank you so much, Kennedy.
I will continue to do more.
I appreciate your kind words.
This is business. No sentiments.
The dozies got a good deal and cashed out handsomely
I don't understand how generational transfer of business and uzoma's perceived incompetence comes into play based on the thoroughly analysed narrative we just heard
If you leave the Uzomas to choose, they would prefer to continue running the business, instead of the merger deal.
Although it may seem to be a good deal, but they lost more than they gained. Material and legacy wise.
Very educating
Thank you so much, sir.
Your reportage is top notcg
Thank you so much, Einstein Prodigy.
Diamond bank was just horrible and sadly Access bank doesn't seem much better.
Access doesn't seem much better?
I actually do not have an Access bank account, I thought they are good and close to perfect.
Beautiful explanation ❤
Thank you, David.
Very brief and detailed account at thesame time. Good content. Already subbed. I guess Alex Oti dodged a bullet. All that glitters is not gold. Do your research before making huge investments.
Thank you, Hanz.
I appreciate the compliments.
Yeah, Otti said he wanted to leave because he wanted to contest for governor in 2015, which he later did. There may also be other unknown reasons.
Good content man! Keep it up! We need more educative contents like this.
Thank you so much, Judah Homes.
I will be dropping more.
Another one is coming up next week.
Good work bruh.
Thank you so much, Gbenga.
Well said
Thank you, Sir.
Good analysis
Thank you so much.