Coronation Merchant Bank records zero NPL for N55b loans

While the nation’s banking sector is reeling under the pangs of huge Non-Performing Loans (NPL) portfolio, Coronation Merchant Bank Limited, celebrates full financial year with all its debtors responding to obligations totalled N54.8 billion.

The development, disclosed in the bank’s 2018 full year results, showed that in 2017, the lender also recorded zero NPL on loans and advances estimated at N32.3 billion.

Besides, the group maximised opportunities in its core business to deliver stable and sustainable revenue, growing the topline revenue by 10 per cent compared to 2017.

Specifically, profit before tax increased from N5.1 billion in 2017, to N5.3 billion, while total assets grew by 63 per cent from N136 billion in 2017, to N223 billion in 2018.

The Group Managing Director/Chief Executive Officer of Coronation Merchant Bank, Abu Jimoh, said: “despite a difficult operating environment, our company stayed the course, recording modest growth across most financial indices.”

He said the group has continued to expand its sector reach, and meet customers’ financing needs by offering tailor-made products to their varied needs.

“In 2018, we deliberately increased our exposures to high quality obligors in agriculture, manufacturing and oil and gas sectors that fall within our risk acceptance criteria.

“The quality and efficacy of our growth strategy is evidenced by our zero NPL 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.

“The bank’s commercial paper product, which was launched in the year helped to provide a relatively stable funding base to support our growth. Our Customer Deposit grew by over 65 per cent from N76billion in 2017 to N126billion in 2018. The positive results recorded by our commercial paper is an attestation of Bank’s strength in the capital market and a reflection of its growing level of investor confidence.

“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. When we look at where we stand today, our company is stronger, simpler, and better positioned to deliver long-term value to our stakeholders, thanks to the straightforward way in which we serve our customers and clients,” he said.

There was also increase in foreign exchange and fixed income trading volumes, loan disbursement, e-channel transactions which saw the bank’s non-interest income rise by 46 per cent year-on-year to achieve N4.1 billion against N2.8 billion in 2017.

However, the impact of the adoption of IFRS 9, increased the bank’s cost of risk marginally from zero per cent to 0.03 per cent, with all its risk assets in the stage 1 classification, according to IFRS 9 classification.