Coronation Merchant Bank Limited’s full year results for 2018 has revealed that the bank recorded profit before tax of N5.3 billion, higher than the N5.1 billion recorded same period last year.
But its profit after tax stood at N4.6 billion in the result under review, as against the N4.7 billion it achieved last year.
The group however maximised opportunities in its core business to deliver stable and sustainable revenue as its topline revenue grew by 10 per cent, compared to 2017, while total assets grew by 63 per cent from N136 billion in 2017, to N223 billion.
Earning assets grew significantly by 70 per cent year-on-year to cushion the huge gap from reduced market-driven decline in yield.
This, according to a statement from the bank, resulted to a slight decline in net interest income by five per cent to achieve N7.6 billion, down from N8 billion in 2017.
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 46 per cent year-on-year, to achieve N4.1 billion, compared with the N2.8 billion it achieved in 2017.
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.
Commenting on the results, the Group Managing Director/CEO of Coronation Merchant Bank Limited, Abu Jimoh, said: “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.
“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 organisations fulfil their hopes and realise their ambitions.
Commenting further, 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 and 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 100 per cent, driven largely by self-liquidating trade finance transactions that are well managed, in line with our risk management framework.”
Furthermore, the statement disclosed that the bank’s commercial paper product which was launched in the year under review, helped to provide a relatively stable funding base to support our growth.
“Our customer deposit grew by over 65 per cent, from N76 billion in 2017, to N126 billion 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.”
