Coronation Merchant resolves to become Africa’s premier investment bank

Posts N5.3 billion PBT in 2016

Coronation Merchant Bank has expressed its resolve to fill the gap of the underserved market segment, by addressing the need for long-term capital across key sectors of the economy. This will be done through technology, product offerings and risk management expertise in the industry.

Addressing shareholders at the 2016 yearly general meeting of the bank, the Group Managing Director/CEO, Abubakar Jimoh, noted that there is a clear market demand for more sophisticated banking services from Nigeria’s top tier corporates.

According to him, with asset base of over N100 billion, the bank is well positioned to becoming the industry model for risk management, corporate governance and responsible business practices.

He added that the bank’s quest for industry distinction was evident in its recently unveiled corporate identity, designed to communicate the group’s vision, ambition and strength.

Reviewing its performance, Jimoh explained that the bank’s profit before tax rose to N5.3 billion, representing an increase of 128 per cent over 2015 performance of N2.3 billion.

The bank’s net interest income also increased by 86 per cent, from N4.3 billion in 2015, to N8 billion in the year under review. Shareholders’ fund increased from 20.4 billion to 25.9 billion during the period under review.

Jimoh attributed the improved performance to increased efficiency in its overall funding mix as well as significant growth in the bank’s balance sheet size.

Similarly, the group also recorded significant growth in its balance sheet in 2016, as its total assets rose to N106.6 billion, from N78.3 billion in December 2015.Also, shareholder’s funds increased to N25.8 billion from N20.24 billion. As at December 31, 2016, its non-performing loans (NPL) ratio stood at zero percent.

Furthermore, he explained that the bank currently has 40 per cent capital adequacy ratio, which is above the regulatory minimum of 10 per cent and is driven by its vision of becoming Africa’s premier investment Bank.

Jimoh, said the results of the bank in the last two years of business operation demonstrated the effectiveness of its strategy as the bank continued to grow its market share in key segments of the economy.

“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 individuals who excelled and rose to the top of merchant banking sector at its height of excellence to become the industry model for risk management.

“We defined our risk appetite to be moderate and determined our customer base. We were also very careful in our exposures to dollar-based assets, which is one of the main reasons for the high NPLs amongst banks. 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.

“Coronation Merchant Bank’s quest for industry distinction is evident in its recently unveiled corporate identity which has been designed to communicate the groups vision, ambition and inner strength.’

He added that the bank is not designed to be the biggest player in the industry in terms of size of operations but intends to be the best in services, technology, product innovation, and customer experience.