Coronation Merchant Bank Grows Profit 100% to N3.2bn

Goddy Egene

Coronation Merchant Bank (CMB) Limited has recorded a profit before tax of N3.2 billion for 2015 financial year, showing an increase of 100 per cent from N1.6 billion in 2014. Profit before tax grew to N2.3 billion.

Speaking at the bank’s  22nd annual general meeting (AGM) in Lagos, Chairman of CMB, Mr. Tijani Folawiyo said in spite of the challenging operating environment and  tough financial market, the bank recorded significant improvement  compared with performance of 2014.

He said CMB’s net interest income grew to N3.06 billion  from N2.19 billion  in 2014 bolstered by  increased earnings from treasury assets and modest loan growth. Balance sheet grew from N74.12 billion  to N78.28 billion, just as  shareholders’ funds increased from N16.5 billion to N20.3 billion.

Its loan to deposit ratio, he disclosed, stood at 4.31 per cent from 0.73 per cent reflecting growth in its loan portfolio
Based on the performance, the directors of  the bank proposed a dividend of 105 kobo  per ordinary share of N1, which the shareholders approved.

He noted that following the challenging economic situation in the country for most part of last year, the bank made conscious efforts to create only high risk asset.
“We hope to continue to be guided by a moderate risk appetite as we grow our loan book,” he said, attending that the firm would continue to  build a formidable franchise in the areas of corporate banking, investment banking, private banking/wealth management and global markets/treasury.

“We will continue to recruit highly skilled and motivated people that will enable us deliver superior services and take advantage of emerging opportunities within our chosen markets,” Folawiyo said.

CMB was formerly Associated Discount House Limited (ADHL). The transition from a discount house to merchant banking commenced on September 27 2013 and culminated in the issuing of CBN’s approval of the conversion on April 30, 2015 to CMB. Following this, the bank also obtained its foreign exchange   dealing license on July 2 2015.

“With both approvals, CMB assumed the heritage assets and liabilities of ADHL and brings alive a new force in the Nigerian banking industry.

ADHL’s core strength in treasury business, a sound corporate governance, consistent investment in human capital and technology has positioned CMB to create a new order in asset/ wealth management as well as corporate and investment banking,” the bank said