Coronation Merchant Bank Limited has announced that it recorded a 15 per cent increase in profit before tax (PBT) for the year ended December 31, 2020.
According to the bank’s audited financial results for the year ended December 31, 2020, its PBT rose to N5.78 billion from N5.024 billion in 2019, while profit after tax (PAT) was down by 1 per cent to N5.04 billion from N5.09 billion recorded in 2019.
Similarly, its total assets increased by 63 per cent from N253.35 billion in 2019 to N412.36 billion, loans and advances to customers rose by 69 per cent to N122.21 billion as at December compared with N72.2 billion recorded in 2019 with shareholders’ funds rising 16 per cent to N40.11 billion as against N34.57 billion recorded in the preceding year.
Commenting on the financial results, the Managing Director of Coronation Merchant Bank, Banjo Adegbohungbe, said that despite the challenges in the operating environment, the bank 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”, he said. According to him, the bank’s non-interest incomer 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.
During the year, we concluded our maiden international credit rating by Fitch with B- (stable outlook) as at 31 December 2020”, Adegbohungbe said.
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.