+ Why Bankers Eye The Pace-setting Financial Institution

Dr. Alex Otti who is the Group Managing Director and Chief Executive Officer of Diamond Bank Plc, of one of Nigeria’s leading financial institution, Diamond Bank Plc has been able to carve a niche for himself in the banking sector.

The intellectual banker and quintessential leader who, after graduating with a first class degree and as the best graduating student in his set at the university has been making strides for others to follow.”

No doubt, Otti’s tenure extension is in recognition and appreciation of the impact his leadership has had on the bank since March 2011.

In his first three years, Dr. Otti focused on steadying the bank which was reeling from the effects of the global financial crises of 2008/2009, had declined in size, and lost market share to competition. The bank was also confronted with the challenge of raising additional capital to meet the new Capital Adequacy Ratio required for the “International Banking License” issued by the Central Bank of Nigeria.

These efforts have started to pay off. In 2012, International Finance Corporation, IFC, invested $70 million in Tier II capital after an extensive due diligence exercise on the bank. Financial performances in 2012 and 2013 show that the bank has regained market share leading to its being named as one of the 8 systemically important banks by the CBN. The bank is also back to profitability after the loss of over N16 billion declared in 2011 financial year occasioned by non-performing loan write-offs, and write down in the value of assets. The business of the bank is now more sustainable and the bank believes it will continue to build on the hard work that generated profits of N28.36 billion and N33.25 billion in 2012 and 2013 respectively. In his short stint, he has overseen the doubling of the assets of the bank which stood at over N1.3 trillion in December 2013, and has redefined the image of the bank from a conservative stodgy outlook to a more vibrant business partner for individuals, small businesses and big corporates. In 2013, he guided the bank to establish physical presence in London with the opening of a UK office, venturing outside West Africa for the first time and signifying its intent to achieve global relevance in the future. The board is pleased to note that as at end of March 2014, Diamond Bank is one of few international banks with profitable subsidiaries in all countries where it has presence.

Just as the name suggests, Diamond Bank is a precious stone; hence, treats its staffers in a very special way. The bank over time has shown that it is a special breed in the financial sector.

Investigation revealed that the bank’s welfare packages, salaries for its staffers vis-à-vis other financial institutions in Nigeria is unbeatable.

We gathered that the bank shares its annual profits with its workers, even with the DSAs (Direct Sales Agents)

Further digs shows that as at 2013, the lowest in the staff ladder received N180, 000 (One hundred and eighty thousand naira). In the first quarter of 2014, N150, 000(One hundred and fifty thousand naira) was paid to the least ranking staff. We were authoritatively informed that the decrease in figure was as a result of payments made to Shareholders.

Also, information at our disposal revealed that the Bank pays its contract staff a monthly salary of N67, 000 (Sixty Seven Thousand Naira) which is the highest in the industry.

Again, the bank’s least ranking staffer earns N3.4 Million annually; the highest you can get in the sector.

Dr. Otti, who is also the Chairman of Committee of Bank CEOs in Nigeria, has over 25 years industry experience in the Nigerian Banking Sector, having started his career in Citibank in 1989.

He started his banking career with Nigeria International Bank Limited, a subsidiary of Citibank N.Y. in 1989 where he worked in the Operations Department. He subsequently moved on to Nigerian Intercontinental Merchant Bank Ltd (now Intercontinental Bank Plc).

At Intercontinental, he was at various times in the Treasury and Financial Services and Corporate Banking Divisions. In 1992, he joined the then Societe Bancaire Nigeria Ltd (Merchant Bankers), a subsidiary of Banque SBA Paris. He left as Senior Manager in 1996. Towards the end of 1996, he moved to United Bank for Africa Plc as Principal Manager, heading Corporate Banking Sector, South. His major responsibility was the development of the Oil and Gas businesses for the Bank. In the year 2000, he was promoted Assistant General Manager.

In May 2001, he joined First Bank of Nigeria Plc as an Assistant General Manager with responsibility for Energy Group. In April 2004, he was promoted Deputy General Manager. In September 2005, Alex Otti was appointed Executive Director in First Bank Nigeria Plc. As Executive Director, he started as Head of Commercial Banking and subsequently, Head of the Regional Businesses in the South-Southern and South-Eastern Geo-Political Zones comprising over 180 branches.

As a result of his leadership style and giant strides, the Public Policy Research and Analysis Centre, PPRAC, at an event organised recently, honoured the Bank’s boss with the 2013 Zik Leadership Prize. This, Otti won in the Professional Leadership category.