Coronation Merchant Bank Limited has reported a growth of 14 per cent in its earnings for the year ended December 31, 2019.
The Bank in a statement to LEADERSHIP, said that despite the challenging environment in 2019, Coronation MB posted profit after tax of N5.097 billion, from N4.484 billion, representing a growth of 14 per cent.
Loans and advances to customers up 34 per cent to N72.68 billion as at December, 2019 from N54.3 billion in December, 2018, while customer deposits up nine per cent to N138.08 billion in 2019 from N126.90 billion in 2018. Also, shareholders funds stood at N34.57 billion, an increased of 11 per cent, compared to N31.15 billion in 2018.
Total Assets also grew by 14 per cent from N222.78 billion in 2018 to N253.35 billion. Non-interest income grew by 64 per cent 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 returning its focus to its core strength of banking. This divestment is expected to free up additional capital and increase shareholders’ value.
Operating expense declined moderately due to effective cost saving initiatives implemented by the organisation. The Bank was able to curtail the year-on-year operating expense which dipped by one per cent despite prevalent double-digit inflation.
The Bank’s risk assets recorded an increase of 34 per cent 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. Cost of risk remained at a healthy level of 0.05 per cent 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
Speaking on the financial results, acting managing director of Coronation Merchant Bank, Banjo Adegbohungbe 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.”.
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.