Coronation Merchant Bank Limited has announced its Audited Financial Results for the year ended 31, December 2021 and declared a PBT of N2.796billion.
Managing Director, Banjo Adegbohungbe said the year was characterized by significant challenges including the escalating impact of cash reserve requirements, negative carry on fixed income securities, FX illiquidity and rising regulatory costs.
“In spite of these headwinds, we delivered a modest financial performance with a stronger balance sheet and solid prudential ratios”, Adegbohungbe noted.
Profit before tax declined by 52% from N5.784billion in 2020 to N2.796billion, while Total Assets grew by 15% from N412.19billion in 2020 to N473.97billion in 2021.
Net interest income declined by 75.05% from N4.005billion to N999million. This is primarily due to the higher cost of funding the regulatory cash reserve requirement and the special bills issued by the Central Bank of Nigeria (CBN).
Non-interest income grew by 22%, largely driven by trading income and commissions and fees.
Operating expenses grew by 24% YoY driven largely by significant increase in NDIC premium and other regulatory induced costs.
Cost of risk remained at a healthy level of 0.10%, while nil NPL was recorded for the sixth consecutive year.
In the highlights, Total Assets grew by 15% from N412.19billion in 2020 to N473.97billion; Loans and advances to customers up 23% to N151.22billion as at Dec 2021 (Dec 2020: N122.68billion).
Customer Deposits down 9% to N177.36billion as at Dec 2021 (Dec 2020: N195.16billion); Profit Before Tax down 52% to N2.796billion (Dec 2020: N5.784billion); Shareholders’ Funds down by 1% to N39.80billion (Dec 2020: N40.11billion).
Capital Adequacy Ratio: 17.97% as at Dec 2021 (Dec 2020: 19.87%); Regulatory Loan to Funding Ratio: 74.0% as at Dec 2021 (Dec 2020: 67.9%); NPL Ratio: 0% as at Dec 2021 (Dec 2020: 0%).
Cost to Income Ratio of 69.6% as at Dec 2021 (Dec 2020: 50.3%); Net Interest Margin: 0.34% as at Dec 2021 (Dec 2020: 1.63%); EPS: 40 kobo (Dec 2020: 100 kobo); Return on Equity 7.00% as at Dec 2021 (Dec 2020: 15.49%).