Coronation Merchant Bank Limited has announced N5.784 billion profit before tax (PBT) in its audited financial results for the year ended December 31, 2020.
Commenting on the financial results, the bank’s Managing Director, 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”.
Highlights of the result showed total assets rose by 63 per cent from N253.35 billion in 2019 to N412.36 billion; loans and advances to customers up 69 per cent to N122.21 billion as at Dec 2020 as against N72.2 billion in same period of 2019 while customer deposits equally increased by 41 per cent to N195.16 billion as at Dec 2020 compared with N138.08 billion in 2019.
The bank’s shareholders’ funds up by 16 per cent to N40.11 billion as against N34.57 billion in December 2019.
The bank’s Capital Adequacy Ratio rose to 20.01 per cent as at December 2020 higher than 19.17 in December 2019 among other indicators.
Despite the volatile environment in 2020, Profit before Tax increased by 15 per cent 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 per cent, mainly driven by trading income that compensated for the declining yield environment in the market.
Risk assets increased by 69 per cent as the bank continued to support its customers through difficult times.
Cost of risk remained at a healthy level of 0.14 per cent 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 per cent year-on-year in spite of the impact of forex devaluation and rising inflation which closed at 15.75 per cent as at December 2020.
During the year, the bank concludedits 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.
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