Coronation Merchant Bank has reported a 62% rise in gross earnings, reaching N61.6 billion for the fiscal year ending December 31, 2023. This significant growth highlights the bank’s resilience and adaptability in a challenging economic climate.
In a statement released following its Annual General Meeting in Lagos, the bank detailed its diverse services, which include corporate and investment banking, private banking, wealth management, global markets, and treasury services.
For 2023, the bank recorded a profit before tax of N3.47 billion, showcasing a strong recovery from a loss the previous year. Shareholders’ funds also increased by 16.5%, rising to N37.33 billion from N31.99 billion in 2022. The return on equity rebounded to 9%, a notable improvement from the negative 26% reported in 2022.
The bank’s robust financial performance was underpinned by significant improvements in key metrics, despite the challenging economic environment. The capital adequacy ratio improved to 12.6% from 10.2% the previous year, while the non-performing loan ratio remained at an impressive 0%, reflecting the bank’s prudent credit risk management. Additionally, the liquidity ratio increased to 64.4% from 55.6% in 2022, indicating enhanced liquidity management amidst evolving market dynamics.
“The bank’s prudential ratios remained robust, reflecting sound risk management and financial capacity,” the statement noted. The loan-to-funding ratio stayed at 79%, and the NPL ratio was maintained at 0% for the eighth consecutive year, underscoring the bank’s commitment to high asset quality and effective credit risk management.
Managing Director Banjo Adegbohungbe commented on the results, emphasizing the bank’s resilience. “Our financial performance in 2023 underscores the resilience of our strategic vision and the dedication of our team,” he said. “Despite formidable headwinds, we achieved gross earnings of ₦61.6 billion, a 62% increase over 2022. Profit before tax rose to ₦3.47 billion, a remarkable recovery from the previous year’s loss. This performance highlights our commitment to sustainable growth and value creation for our stakeholders.”
Chairman Babatunde Folawiyo noted the bank’s effective navigation through macroeconomic challenges, leveraging past experiences to drive positive outcomes. “While 2023 presented significant challenges due to macroeconomic headwinds that impacted our financial performance, we have remained steadfast in our conviction that the invaluable lessons from the past two years will propel us towards improved performance and returns for our stakeholders. We have not only weathered the storm but have truly harnessed its winds.”
Looking ahead, the bank anticipates navigating a landscape characterized by modest GDP growth, ongoing inflationary pressures, and improved foreign exchange liquidity driven by economic reforms and increased foreign investments. Deputy Managing Director Paul Abiagam expressed confidence in the bank’s future prospects. “Our vision to become the preeminent institution in trade finance, investment banking, corporate banking, and treasury drives us forward. The recognition from World Finance and our sustained top 10 ranking on the FMDQ Treasury league table for the sixth consecutive year validate our relentless pursuit of excellence.”
Abiagam concluded, “We are ready to chart new paths of progress in 2024 by identifying and pursuing emerging opportunities, maintaining exceptional customer service, and leveraging our robust and diversified business model. We are confident in our ability to sustain our trajectory of earnings growth and deliver superior returns to our shareholders.”
