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Coronation Merchant Bank Group reports full year PBT of N5.3bn

…maintains Zero NPL ratio

Coronation Merchant Bank
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Coronation Merchant Bank Limited has released its 2018 Full Year Results to stakeholders in which the bank posted a Profit Before Tax (PBT) of N5.3billion.

Loans & Advances to customers went up 70percent to N54.8billion as at December 2018 (December 2017: N32.3billion). Customer Deposits increased by 65percent to N126.2billion as at December 2018 (December 2017: N76.4billion). Profit Before Tax stood higher at N5.3billion (December 2017: N5.1billion). Shareholders’ Funds increased to N31.5billion as at December 2018 (December 2017 N29.5billion).

Key Ratios show the bank’s Capital Adequacy Ratio of 19.7percent as at December 2018 (December 2017: 24.8percent); Loan to Deposit Ratio stood at 43.4percent as at December 2018 (December 2017: 42.2percent); NPL Ratio: 0percent as at December 2018 (December 2017: 0percent).

Cost to Income ratio increased to 53.5percent as at December 2018 (December 2017: 52.6percent). Net Interest Margin was 5.1percent as at December 2018 (December 2017: 7.7percent); Earnings Per Share (EPS) was 90.62 kobo in December 2018 (December 2017: 94.09 kobo).

Dividend Per Share (DPS) stood at 33 kobo in December 2018 (December 2017: 30kobo); while Return on Equity stood at 15.01percent as at December 2018 (December 2017: 17.17percent).

“Despite a difficult operating environment, our company 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”, said Commenting on the results, Abu Jimoh, Group Managing Director/CEO of Coronation Merchant Bank Limited.

“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. 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 organizations fulfil their hopes and realise their ambitions”, Jimoh added.

The Group maximised opportunities in its core business to deliver stable and sustainable revenue growing the topline revenue by 10percent compared to 2017. Profit Before Tax increased from N5.1billion in 2017 to N5.3billion while Total Assets grew by 63percent from N136billion in 2017 to N223billion. Earning assets grew significantly by 70percent year-on-year (y/y) to cushion the huge gap from reduced market-driven decline in yield. This resulted to a slight decline in net interest income by 5percent to achieve N7.6billion (2017: N8billion). There was increase in foreign exchange and fixed income trading volumes, loan disbursement, e-channel transactions which saw the bank’s non-interest income increase by 46percent y/y to achieve N4.1billion (2017: N2.8billion). The impact of the adoption of IFRS 9 increased the bank’s cost of risk marginally from zero percent to 0.03percent with all its risk assets in the stage 1 classification according to IFRS 9 classification.

Commenting further on the results, Jimoh stated “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 NPL ratios which we have maintained for the third year running. In addition to this, our dollar asset base grew by over 100percent driven largely by self-liquidating trade finance transactions that are well managed, in line with our risk management framework.

Furthermore, 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 65percent from N76billion in 2017 to N126billion in 2018. The positive result 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.

Coronation Merchant Bank Group is a leading African financial institution with business outlays spanning across Investment & Corporate Banking, Global Markets/Treasury Services, Securities Trading/Brokerage, Asset Management and Trustee Services.

 

Iheanyi Nwachukwu

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