Coronation Merchant Bank’s N100 bn CP Programme to close August 19th

THE Coronation Merchant Bank Limited Series three and four Commercial Paper (“CP’), offer under its N100 billion CP Programme will close on Monday, 19th August, 2019 details of the offer have shown.

The Coronation Merchant Bank’s commercial paper product which was launched in the year helped to provide a relatively stable funding base to support its growth.

The number of companies raising short term debt through commercial papers (CPs) programme from the capital market ballooned last year following reluctance by deposit money banks to allocate funds to the private sector. Financial Vanguard’s checks revealed that a total of N505.30 billion was raised in 2018 through CPs programmes by various corporates, representing 231.8 percent rise over the N152.35 billion recorded in 2017. Data obtained by Nigerian Tribune shows that there was a total of 60 CPs quotations on the FMDQ OTC Securities Exchange against 33 CPs quotations in the previous year. This followed continuous decline in credit allocation to businesses, according to operators in the capital market.

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The bank released its 2018 Full Year Results to stakeholders in March, posting a Profit Before Tax of N5.3 billion. The result also showed an increase in foreign exchange and fixed income trading volumes, loan disbursement, e-channel transactions which saw the bank’s non-interest income increase by 46 per cent y/y to achieve N4.1 billion (2017: N2.8 billion). Customer deposit grew by over 65 per cent from N76 billion in 2017 to N126 billion in 2018.

The impact of the adoption of IFRS nine increased the bank’s cost of risk marginally from zero per cent to 0.03 per cent with all its risk assets in the stage one classification according to IFRS nine classification.

Commenting on the results, Abu Jimoh, Group Managing Director/CEO of Coronation Merchant Bank Limited said that despite a difficult operating environment, the company stayed the course, recording modest growth across most financial indices. The growth recorded in profitability and capital position according to him, is a testament to the strength of the lender’s business model and the commitment of its people.

Earning assets grew significantly by 70 per cent year on year (y/y) to cushion the huge gap from reduced market-driven decline in yield.

This resulted to a slight decline in net interest income by five per cent to achieve N7.6 billion (2017: N8.0 billion).