Coronation Merchant Bank Posts Decline in Profits in 2017
Coronation Merchant Bank Limited recorded N4.7 billion in profit after tax for the year ended December 2017, lower than the N5.1 billion recorded in the 2016 financial year.
A statement by the bank showed that the bank posted growth in gross earnings by 66 per cent to N25.5 billion in the year under review.Â Interest income grew year-on-year by 67 per cent while its non-interest income improved by 57 per cent.
Also, its cost-to-income ratio increased marginally by 90 basis points to 46.1 per cent, compared with the 45.2 per cent recorded as of December 2016. The bankâ€™s total assets increased by 28 per cent toÂ N136.7 billion, from N106.6 billion in 2016, while shareholderâ€™s funds increased to N29.5 billion from N25.9 billion.
However, the bank ended the 2017 financial year with profit before tax of N5.1 billion, slightly lower than the N5.3 billion recorded in 2016, while profit after tax also declined to N4.7 billion from the N5.1 billion recorded in the 2016.
Group Managing Director/CEO of Coronation Merchant Bank Limited, Mr. Abu Jimoh described the rise in total assets and shareholderâ€™s funds as a valid testament to the resilience of the Groupâ€™s operations and its adaptability to current market realities and challenges.
Jimoh disclosed that part of the strategic focus of the firm for 2018 was to aggressively increase its market share of corporates and institutional customers.
Jimoh, who said this in statement at the investment bankâ€™s 2017 annual general meeting that took place in Lagos at the weekend, also said the firm intends to focus on creating a world-class digital delivery platform to drive innovation in financial market.
In addition, he said Coronation Merchant Bank will focus on its capital market group to increase the contribution of the subsidiaries to the group.
â€œI strongly believe that the growth and expansion of our subsidiaries will enable us harness the myriad of opportunities in the retail segment and further enhance the contribution of the capital market to the overall group performance,â€ he said.
â€œWe will continue to maintain a disciplined and prudent approach in asset creation in line with our overall risk management framework and evidenced in our growth in loan book ofÂ 42 per cent which increased from N22.7 billion to N32.3 billion with zero non-performing loans (NPLs).
â€œWhile general economic conditions and the regulatory environment remain tight, we believe that our new business and lending strategies, embedded risk management culture and continuous cost savings will enable us stand firm throughout this period,â€ he added.
Jimoh said further: â€œAs we progress in our journey to become Africaâ€™s premier Investment Bank, we remain committed to providing our clients with superior financial services whilst generating attractive and sustainable returns for shareholders.â€