Coronation Merchant Bank Limited has announced its Audited Financial Results for the year ended 31 December 2019 and declares a PAT of N5.097 bn.
Commenting on the financial results, Banjo Adegbohungbe, Ag. Managing Director of Coronation Merchant Bank said that “despite the volatility of our operating environment, we navigated the headwinds that dominated the year to deliver a modest performance in our financial results. We will continue to actively partner with our customers to support their aspirations and deliver sustainable returns whilst being guided by our values of leadership, innovation and integrity”.
Despite the challenging environment in 2019, Coronation MB posted PAT of N5.097 billion. Profit After Tax increased by 14% from N4.484 billion in 2018 to N5.097 while Total Assets grew by 14% from N222.78 billion in 2018 to N253.35 billion. Non-interest income grew by 64% which was mainly driven by trading income. The bank took advantage of the market volatility and increased market penetration in fixed income trading in the year.
During the year, the Bank fully divested from its subsidiaries returning its focus to its core strength of banking. This divestment is expected to free up additional capital and increase shareholders’ value.
Operating expense declined moderately due to effective cost saving initiatives implemented by the organization. The Bank was able to curtail the YOY operating expense which dipped by 1% despite prevalent double-digit inflation.
The bank’s risk assets recorded an increase of 34% mainly attributable to the need to aggressively cover the earning asset gap in the face of declining yields and to ensure continued compliance with regulatory measures to improve lending. Cost of risk remained at a healthy level of 0.05% while NPL was nil, a testament to the Bank’s asset quality.
The bank raised another tranche of Commercial paper liabilities during the year which was fully subscribed to, further reconfirming investors’ confidence in the bank.
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