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Coronation Merchant Bank’s earnings rise by 66%

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Coronation Merchant Bank Limited last Friday announced its 2017 Full Year results to stakeholders at its Annual General Meeting (AGM) held in Lagos, disclosing that it recorded 66 per cent increase in gross earnings growth to N25.5billion and also posted a a Profit Before Tax (PBT) of N5.1billion. Speaking at the AGM, Abu Jimoh, Group Managing Director/CEO of Coronation Merchant Bank Limited, said: “Despite the tough market conditions that characterized significant parts of the year, the underlying business fundamentals of the Bank remained strong as reflected in the Gross earnings growth of 66% 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 whilst generating attractive and sustainable returns for shareholders.

“The impressive results of the bank in the last three years demonstrate the effectiveness of our strategy, the quality of our past decisions and the commitment of our board & management to maximize shareholder value whilst actively expanding our franchise in select, high growth markets where we believe we have a competitive advantage.”

He pointed out that the lender recorded a notable improvement across key performance metrics in 2017, despite the tough and challenging operating environment, stating that the bank recorded interest income growth of 67 per cent y/y and non-interest income growth of 57 per cent in 2017.

Besides, he said: “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% (Dec 2016: 45.2%), 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. Total assets increased by 28% to N136.7bn from N106.6bn in December 2016, and shareholder’s funds increased to N29.5bn from N25.9bn – a valid testament to the resilience of the Group’s operations and its adaptability to current market realities and challenges.”

The Coronation Merchant Bank boss assured the stakeholders that the management and staff of the bank will continue to maintain a disciplined and prudent approach in asset creation in line with the lender’s overall risk management framework as seen in its growth in loan book of 42 per cent, which increased from N22.7billion to N32.3billion with zero Non Performing Loans (NPLs)..

“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. In the coming years, we will focus on the disciplined implementation of our growth strategy to drive efficiency in all segments of our business leveraging fintech and process re-engineering,” he stated.

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