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Coronation Merchant Bank posts N5.784b full year profit

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Banjo Adegbohungbe

Coronation Merchant Bank Limited has announced its Audited Financial Results for the year ended 31 December 2020 and declared a PBT of N5.784 billion.

The bank’s total assets rose by  63 per cent from N253.35 billion in 2019 to N412.36 billion.

Loans and advances to customers grew by 69 per cent to N122.21 billion as at Dec 2020 (Dec 2019: N72.2 billion)

Customer Deposits up 41 per cent to N195.16 billion as at Dec 2020 (Dec 2019: 138.08 billion)

Despite the volatile environment in 2020, Profit before Tax increased by 15 per cent from N5.024 billion in 2019 to N5.784 billion whileTotal Assets grew by 63 per cent from N253.35 billion in 2019 to N412.36 billion in 2020.

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Non-interest income grew by 23 per cent, mainly driven by trading income that compensated for the declining yield environment in the market.

Profit After Tax down 1 per cent to N5.040 billion (Dec 2019: N5.097 billion)

Shareholders’ Funds up by 16 per cent to N40.11 billion (Dec 2019: N34.57 billion)

Capital Adequacy Ratio: 20.01 per cent as at Dec 2020 (Dec 2019: 19.17 per cent)

Regulatory Loan to Funding Ratio: 67.9 per cent as at Dec 2020 (Dec 2019: 71.1 per cent)

NPL Ratio: 0 per cent as at Dec 2020 (Dec 2019: 0 per cent)

Cost to Income Ratio of 50.3 per cent as at Dec 2020 (Dec 2019: 51.1 per  cent)

Net Interest Margin: 1.63 per cent as at Dec 2020 (Dec 2019: 2.39 per cent)

Return on Equity 15.49 per cent as at Dec 2020 (Dec 2019: 15.29 per cent)

Commenting on the financial results, Banjo Adegbohungbe, the Managing Director of Coronation Merchant Bank said that “despite the challenges in our operating environment, we navigated the headwinds that characterised the year to deliver strong results.

In a year when the entire world grappled with the debilitating effects of the COVID-19 pandemic, we strengthened our partnerships with our customers and created sustainable value for our shareholders”.

Risk assets increased by 69 per cent as the Bank continued to support its customers through difficult times.

Cost of risk remained at a healthy level of 0.14 per cent while Non-Performing Loans was nil; which reflects the efficacy of our risk management framework and sound corporate governance.

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Operating expense grew moderately at 14 per cent YoY in spite of the impact of FX devaluation and rising inflation which closed at 15.75 per cent as at December 2020.

During the year, we concluded our maiden international credit rating by Fitch with B- (stable outlook) as at 31 December 2020.

The Bank’s bold decision to proceed with an internationally accepted rating despite the challenging and uncertain operating environment is a reflection of the strength of its franchise, the efficacy of its business strategy and its commitment to delivering long term value for its clients.

In addition to this, the Bank raised several tranches of Commercial papers and issued its maiden subordinated bond which was fully subscribed, raising over N25 billion.

The continued positive results recorded by the Bank in its issues of commercial papers and bonds is a testament to its strong credit rating in the capital markets and growing levels of investor confidence.

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