Coronation Merchant Bank Grows Profit by 123% to N5.3 Billion
Coronation Merchant Bank Limited, a leading merchant banking brand, has recorded a profit before tax of N5.3 billion for the year ended December 31, 2016, showing an increase of 128 per cent from N2.3 billion posted in 2015. Customer deposits grew by 53 per cent from N34.9 billion to N53.5 billion, while gross loans and advances rose soared by 817 per cent from N2.5 billion to N22.7 billion. The bank ended the year with shareholders’ funds of N25.9 billion, compared with N20.4 billion in 2015.
Speaking at the annual general meeting (AGM) in Lagos yesterday, Group Managing Director of the bank, Mr. Abu Jimoh, thanked stakeholders for their continued support in ensuring the bank was able to return maximum value to shareholders.
According to him, despite the harsh operating environment witnessed during the year, the bank sustained its tradition of delivering exceptional performance across all financial indices through an intense focus on innovative product offerings, excellent service delivery as well as prudent cost control and risk management practices.
“In furtherance of our promise to show leadership in the financial services industry, we were also the first to announce our FYE 2016 results. This is a strong reflection of our recently unveiled brand’s first-to-market and efficiency aspirations and is a trend we intend to continue. During the course of 2016, our PBT grew by 128 per cent from N2.3 billion in 2015 to N5.3 billion at the end of the year while net-interest income increased by 86 per cent from N4.3 billion in 2015 to N8 billion in 2016 due to increased efficiency in the overall funding mix and significant growth in the bank’s balance sheet size,” he said.
Jimoh said the impressive results of the bank in our last two years of business operations demonstrate the effectiveness of “our strategy as we continue to grow market share in key segments of the economy. We 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 of 817 per cent from N2.5 billion to N22.7 billion with zero non performing loans.”
The Coronation Merchant Bank boss said while 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. We remain on track to deliver on our 2017 financial projections.”