Coronation Merchant Bank Limited has announced its audited financial results for the year ended 31 December 2020, declaring a Profit Before Tax (PBT) of N5.784 billion.
Commenting on the financial results, the Managing Director of Coronation Merchant Bank, Banjo Adegbohungbe, 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”.
He further said: “Despite the volatile environment in 2020, Profit before Tax increased by 15% from N5.024 billion in 2019 to N5.784 billion while Total Assets grew by 63% from N253.35 billion in 2019 to N412.36 billion in 2020. Non-interest income grew by 23%, mainly driven by trading income that compensated for the declining yield environment in the market.
“Risk assets increased by 69% as the Bank continued to support its customers through difficult times. Cost of risk remained at a healthy level of 0.14% while Non-Performing Loans was nil; which reflects the efficacy of our risk management framework and sound corporate governance. Operating expense grew moderately at 14% YoY in spite of the impact of FX devaluation and rising inflation which closed at 15.75% 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.”
Coronation Merchant Bank Limited attained a strong investment grade rating of “A+” with a stable outlook in 2020 (the highest among Merchant Banks in Nigeria) from Nigeria’s foremost rating Agency – Agusto & Co. The bank has also been rated ‘B-‘ with a Stable Outlook by Fitch, one of the ‘Top 3’ global rating agencies, making it the first and only Nigerian Merchant Bank to receive an international risk rating.