Coronation Merchant Bank remains one of the top-rated merchant Banks in Nigeria as shown by the recently released Rating Report by Agusto&Co, a foremost rating agency in Nigeria.
In the Report, Agusto affirmed the A+ rating assigned to the Bank with stable outlook and stated that the rating reflects the Bank’s position in the merchant banking space, good capitalisation, good asset quality and good liquidity position. In preparing the report, the agency took into cognisance the impact of the COVID-19 pandemic, which has led to severe uncertainty surrounding the Nigerian economy.
A review of the Bank’s financial performance showed that as at 31 December 2019, the Bank’s gross loans and advances stood at ₦72.7 billion, representing a year-on-year increase of 33.9%. As at FYE 2019, the Bank did not record any credit deterioration with the entire credit portfolio classified under stage 1. Core capital grew by 6.3% to ₦33.7 billion as at FYE 2019, more than double the regulatory minimum for merchant banks operating in Nigeria. As at the same date, the Bank’s capital adequacy ratio stood at 19.2% surpassing the 10% regulatory threshold.
As at March 2020, Coronation MB had about US$310 million in trade finance lines including a US$40 million trade finance guarantee facility obtained from the International Finance Corporation (IFC). The Bank’s intended five-year bond is also expected to support funding stability. Overall, the rating agency is of the opinion that the Bank is adequately positioned to grow business volumes, albeit moderated by the prevailing economic conditions.
About Coronation Merchant Bank
Coronation Merchant Bank was established in 2015 to provide wholesale banking to a long-underserved market. The Bank offers: Corporate and Investment Banking, Private Banking/Wealth Management and, Global Markets/Treasury Services to its niche clientele. It presently has two branches located in Abuja and Port Harcourt with its Head Office in Lagos, Nigeria.
The Bank has been the recipient of numerous International and National awards for product innovation and sound corporate governance practices. Some of the international awards it received in 2019 include Best Investment Bank in Nigeria by Global Finance, Best Investment Bank in Nigeria by World Finance, Best Investment Bank in Nigeria by Global Banking & Finance Review, Best Investment Bank by Global Business Outlook and Best Investment Bank in Nigeria by International Finance.