Coronation Merchant Bank posts 128% rise in earning
Despite challenging economic situation in the country, Coronation Merchant Bank sustained its impressive financial performance across all indices, posting 128 per cent increase in profit before tax in 2016.
The development is showing that the banking sector operations remain strong, but requires each financial institution to create its niche in the industry.
The Group’s result, acclaimed to be the first to be announced in the banking industry for 2016, is also riding on its goals of “first to market” and efficiency aspirations.
According to the lender, net-interest income increased by 86 per cent from N4.3 billion in 2015 to N8 billion in 2016 because of increased efficiency in the overall funding mix and significant growth in the bank’s balance sheet size.
It also recorded a Profit Before Tax of ₦5.3 billion in 2016, which represents an increase of 128% over the last year’s performance of N2.3 billion.
The Group Managing Director/Chief Executive Officer of Coronation Merchant Bank Limited, Abu Jimoh, said that the impressive results of the bank in the last two years of business operation demonstrate the “effectiveness of our strategy as we continue to grow our market share in key segments of the economy.”
“We will continue to maintain a disciplined and prudent approach in our exposures to dollar based assets in line with our overall risk management framework. As at December 31, 2016, our Non-Performing Loans ratio stood at zero percent,” he said.
A significant growth in the Balance Sheet size was also recorded as total assets rose to N106.6 billion from N78.3 billion in December 2015.
Shareholders’ funds increased to N25.8 billion from N20.24 billion, a valid testament to the resilience of the Group’s operations and its adaptability to market realities and challenges.
The bank has a 40% capital adequacy ratio above the regulatory minimum of 10% and is driven by its vision of becoming Africa’s premier investment Bank.
Consequently, its expertise in corporate banking, investment banking, global markets, private banking, assets management, trust services and securities trading have been efficiently strengthened with the appointment of individuals with vast international and local experience to deliver exceptional benefits to clients and other stakeholders.
With a strong risk rating of ‘A‘ by Agusto and asset base of over N100 billion, the banking group is certain to leverage its privileged direction by some of Nigeria’s individual’s who excelled and rose to the top of merchant banking sector at its height of excellence to become the industry model for risk management, corporate governance and responsible business practices.