Coronation Merchant Bank records 66% growth in gross earnings
Coronation Merchant Bank Limited, a leading merchant banking, has recorded a 66 per cent growth in its gross earnings for the 2017 financial year.
The bank also announced a N5.1bn profit before tax during its Annual General Meeting held in Lagos on Friday.
The Group Managing Director/Chief Executive Officer, Coronation Merchant Bank, Abu Jimoh said, “Despite the tough market conditions that characterised significant parts of the year, the underlying business fundamentals of the bank remained strong as reflected in the gross earnings growth of 66 per cent to N25.5bn in 2017.
“As we progress in our journey to become Africa’s premier investment bank, we remain committed to providing our clients with superior financial services while generating attractive and sustainable returns for shareholders.”
In a statement, the bank said the impressive results in the last three years demonstrated the effectiveness of its strategy, the quality of its past decisions and the commitment of the board and management to maximise shareholder value.
According to the statement, the financial institution will continue to expand its franchise in select and high-growth markets where it has a competitive advantage.
Jimoh said the Coronation Merchant Bank Group recorded a notable improvement across key performance metrics in 2017, despite the tough and challenging operating environment.
He said, “Our interest income growth of 67 per cent year-on-year and non-interest income growth of 57 per cent in 2017 re-affirm the sustainability of our core business growth. We will continue to gain momentum in our efforts to achieve more diversified earnings, as we strengthen our subsidiaries offerings.
“Our deliberate focus on the efficiency of our business operations has continued to yield considerable returns for the bank. Despite the high inflation rate, cost-to-income ratio increased marginally by 90bps to 46.1 per cent (Dec 2016: 45.2 per cent), reaffirming the bank’s commitment to rein in costs while improving operating efficiency.”
Aside from the strong earnings performance, the group recorded a significant growth in its balance sheet in 2017.
The total assets increased by 28 per cent to N136.7bn from N106.6bn in December 2016, and shareholder’s funds increased to N29.5bn from N25.9bn.
“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 42 per cent which increased from N22.7bn to N32.3bn with zero non-performing loan,” Jimoh 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,” he added.
The Coronation MB Group boss said in the coming years, the lender would focus on the disciplined implementation of its growth strategy to drive efficiency in all segments of its business leveraging financial technology and process re-engineering.
The statement said the bank’s loans and advances to customers grew by 42 per cent to N32.3bn as at Dec 2017 (December 2016: N22.7bn), while customer deposits was up by 43 per cent to N76.4bn as at Dec 2017 (December 2016: N53.4bn).