Coronation Merchant Bank Posts N223 Billion Profit In 2018
Coronation Merchant Bank Limited has recorded an increase in profit to the tune of N223 billion in 2018, against N136 billion in 2017, and total assets, which grew by 63 per cent. Besides, Profit Before Tax (PBT) increased from N5.1 billion in 2017, to N5.3 billion, while earning assets grew significantly by 70 per cent year-on-year to cushion the huge gap from reduced market-driven decline in yield.
The shareholders’ funds increased to N31.5 billion from N29.5 billion in 2017, while loan-to-deposit ratio stood at 43.4 per cent as against 42.2 per cent. There was increase in foreign exchange and fixed income trading volumes, loan disbursements, e-channel transactions which saw the bank’s non-interest income increase by 46 per cent year-on-year to achieve N4.1 billion compared with N2.8 billion achieved in 2017.
Speaking at the fourth yearly general meeting in Lagos, the bank’s Group Managing Director/Chief Executive Officer, Abubakar Jimoh, said despite a difficult operating environment, the bank stayed the course, recording modest growth across most financial indices. The growth we recorded in our profitability and capital position is a testament to the strength of our business model and the commitment of our people.
Jimoh said the bank is stronger, simpler and better positioned to deliver long-term value to shareholders. He added: “As a platform for improving lives, our aim is to assist our customers to identify growth opportunities, harness these opportunities and in the process, enable businesses thrive, economies grow, and ultimately, help organisations fulfil their hopes and realise their ambitions.”
In his words: “As a group, we have continued to expand our sector reach and meet our customers’ financing needs by offering products tailor-made to their varied needs. In 2018, we deliberately increased our exposures to high-quality obligors in agriculture, manufacturing and oil & gas sectors who fall within our risk acceptance criteria.
“The quality and efficacy of our growth strategy is evidenced by our zero non-performing loan ratios which we have maintained for the third year running. In addition to this, our dollar asset base grew by over 100 per cent driven largely by self-liquidating trade finance transactions that are well managed, in line with our risk management framework.”
In his remarks, Chairman of the bank, Babatunde Folawiyo, said contrary to expectations, Nigeria has continued to attract foreign portfolio investment which, though not as long-term and economically generative as foreign direct investment, suggests a degree in the1 financial markets going forward.