LAGOS, Nigeria, March 2016
Upholding its discount house legacy, Coronation Merchant Bank (‘the Bank’) has sustained its tradition with impressive first year results. The Bank’s outcomes, which were the first in the banking industry to be announced for the 2015 fiscal year, reflect accountability, transparency and a culture of responsibility that are defining attributes of the Coronation Merchant Bank brand.
The results illustrate an overall exceptional performance and underscore the efficiency of the Bank’s operations. Coronation Merchant Bank posted a Profit Before Tax (PBT) of N2.33bn, which represents an increase of 43.7% over last year’s figure of N1.62bn. Profit After Tax (PAT) also rose from N1.61bn to N3.22bn, which is 100% growth from the previous year.
Aside from its strong earnings, Coronation Merchant Bank also witnessed exceptional improvement in its revenue generation capacity as a result of increased efficiency in its funding mix. The Bank’s net-interest income increased from N2.21bn in 2014 to N3.07bn in 2015. In addition, non-interest income rose by 83.3%, from N.70bn in 2014 to N1.29bn in 2015, highlighting the effectiveness of the Bank’s business strategy and operational model.
Recent realignments in Coronation Merchant Bank’s operational model have significantly improved its assets. In 2014, its total assets rose from N74.64bn to N78.24bn within one year and shareholders’ funds increased from N16.53bn to N20.24bn, which is a testament to the competitiveness of the bank’s operations and its ability to adapt to market realities.
An emerging merchant banking franchise with 77.3% capital adequacy ratio above the regulatory minimum, Coronation Merchant Bank is driven by its vision of becoming Africa’s premier investment bank. Consequently, its expertise in corporate banking, investment banking, private banking, asset management and securities trading have been strengthened through the appointment of knowledgeable experts with vast international and local experience, who can deliver exceptional benefits to its clients and other stakeholders, to various positions across the firm.
With a strong risk rating of ‘A-‘ by Agusto & Co. and an asset base of over N78bn, Coronation Merchant Bank will undoubtedly harness the knowledge and skills of its leaders to become the industry model for risk management, corporate governance and ethical business practices. The Bank’s quest for industry distinction is reinforced by its best-in-class service orientation and efficient information technology platform, which support its operations in Lagos, Port Harcourt and Abuja.
About Coronation Merchant Bank
Coronation Merchant Bank is a full service merchant bank formed from erstwhile Associated Discount House Limited (ADHL). The Bank commenced its operations as a merchant bank in 2015 following CBN’s approval of the transferral from a discount house licence to a merchant bank licence. Subsequently, it was issued a FX dealing licence in 2015 by the CBN, enabling it to fulfil its operational requirements as a merchant bank. With these regulatory approvals, Coronation Merchant Bank assumed the heritage and liabilities of ADHL and brought a new force in the Nigerian banking industry to life.