Coronation Merchant Bank Limited posted a Profit -After Tax (PAT) of N5.097 billion for the year ended 31 December 2019 as seen in its audited financial results on Thursday.
This represents a growth of 14 percent when compared with N4.48b it recorded in the corresponding period of 2018.
Commenting on the financial results, Banjo Adegbohungbe, Acting Managing Director of the bank, said that “despite the volatility of our operating environment, we navigated the headwinds that dominated the year to deliver a modest performance in our financial results. We will continue to actively partner with our customers to support their aspirations and deliver sustainable returns whilst being guided by our values of leadership, innovation, and integrity”.
Despite the challenging environment in 2019, the bank’s total assets grew by 14% from N222.78 billion in 2018 to N253.35 billion. Non-interest income grew by 64% which was mainly driven by trading income. The bank took advantage of the market volatility and increased market penetration in fixed income trading in the year.
During the year, the Bank fully divested from its subsidiaries to focus on its core strength of banking. This divestment is expected to free up additional capital and increase shareholders’ value.
Operating expenses declined moderately due to effective cost-saving initiatives implemented by the organization. The Bank was able to curtail the YoY operating expense which dipped by 1% despite prevalent double-digit inflation.
The Bank’s risk assets recorded an increase of 34% mainly attributable to the need to aggressively cover the earning asset gap in the face of declining yields and to ensure continued compliance with regulatory measures to improve lending. The cost of risk remained at a healthy level of 0.05% while NPL was nil, a testament to the Bank’s asset quality.
The Bank raised another tranche of Commercial paper liabilities during the year which was fully subscribed to, further reconfirming investors’ confidence in the Bank
In another development, Coronation Merchant Bank has been appointed as a designated bank for the collection and remittance of all revenue payments (i.e. Import, Excise, and other duties) by the Nigeria Customs Service (NCS).
Commenting on the bank’s appointment, Adegbohungbe, said: “This is another important milestone on our journey to become a leading bank in Nigeria and an important enabler of our capacity to support the aspirations of our customers. We are grateful to the Nigeria Customs Service for the opportunity of a partnership that will be mutually beneficial to the partners and our customers.”
Since its inception in 2015, Coronation Merchant Bank has successfully differentiated itself by delivering value to several companies across Nigeria and enabling them to achieve their business objectives.
The bank has been the recipient of numerous International and National awards for product innovation and sound corporate governance practices. Some of the international awards it received in 2019 include Best Investment Bank in Nigeria by Global Finance, Best Investment Bank in Nigeria by World Finance, Best Investment Bank in Nigeria by Global Banking & Finance Review, Best Investment Bank by Global Business Outlook and Best Investment Bank in Nigeria by International Finance.
Coronation Merchant Bank was established in 2015 to provide wholesale banking to a long-underserved market. The bank offers investment and corporate banking; private banking/wealth management, and global markets/treasury services to its niche clientele. It presently has two branches located in Abuja and Port Harcourt with its head office in Lagos, Nigeria.
