Banking
Coronation Merchant Bank Grows Gross Earnings 66% in 2017
By Dipo Olowookere
Nigeria’s leading merchant banking brand, Coronation Merchant Bank Limited, has announced its 2017 full year results, posting a 66 percent increase in its gross earnings.
Presenting the financial documents to its stakeholders at the Annual General Meeting (AGM) held in Lagos, chief executive of the lender, Mr Abu Jimoh, said the firm achieved a Profit Before Tax of N5.1 billion.
According to him, “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 percent to N25.5 billion 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.”
Mr Jimoh further said, “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 and management to maximize shareholder value whilst actively expanding our franchise in select, high growth markets where we believe we have a competitive advantage.”
He said Coronation MB Group recorded a notable improvement in key performance metrics in 2017, despite the tough and challenging operating environment.
“Our interest income growth of 67 percent y/y and non-interest income growth of 57 percent in 2017 re-affirm the sustainability of our core business growth.
“We will continue to gain momentum in our efforts to achieve more diversified earnings, as we strengthen our subsidiaries offerings.
“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 percent (Dec 2016: 45.2 percent), reaffirming the bank’s commitment to rein in costs while improving operating efficiency,” the bank chief noted.
Mr Jimoh said aside from the strong earnings performance, the group recorded a significant growth in its Balance Sheet in 2017.
Total assets increased by 28 percent to N136.7 billion from N106.6 billion in December 2016, and shareholder’s funds increased to N29.5 billion from N25.9 billion – a valid testament to the resilience of the group’s operations and its adaptability to current market realities and challenges.
But Mr Jimoh assured that, “We will continue to maintain a disciplined and prudent approach in asset creation in line with our overall risk management framework and evidenced in our growth in loan book of 42 percent which increased from N22.7 billion to N32.3 billion with zero NPL.”
He said, “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 to stand firm throughout this period.”
Mr Jimoh told stakeholders that, “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.”
Coronation Merchant Bank group was established to fill the gap in a long-underserved market segment, seeking to address the need for long-term capital across key sectors of the economy, and has two branches located in Abuja and Port Harcourt with its Head Office in Lagos, Nigeria.
The Group offers investment and corporate banking, private banking/wealth management and global markets/treasury services to its diverse clients.
It also offers securities trading/brokerage, asset management and trustees services via its subsidiaries; Coronation Securities Limited, Coronation Asset Management Limited respectively.
By Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has reaffirmed that the old and new Naira notes will continue to be used for financial transactions in the country beyond December 31, 2024.
There had been rumours that the old and redesigned N200, N500, and N1,000 banknotes would no longer be legal tender from Wednesday, January 1, 2025, because the central bank would phase out the notes in compliance with a Supreme Court judgement of November 29, 2023.
But the apex bank, in a statement signed by its acting Director of Corporate Communications, Mrs Hakama Ali, on Friday, clarified that the apex court’s judgement being cited did not authorise the bank to phase out the banknotes by the end of this year.
According to her, the court allowed the CBN to leave the old and new notes to be used concurrently until it decides to gradually phase out the former.
The central bank’s spokesperson urged members of the public to disregard claims suggesting the old series of these denominations would cease to be valid at the end of this year.
She urged them to continue to accept all Naira notes for daily transactions, encouraging banks to also adopt alternative payment methods such as electronic channels to reduce the pressure on physical cash usage.
“The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old N1000, N500, and N200 banknotes currently in circulation.
“In line with the bank’s previous clarifications and to offer further assurance, the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the N1000, N500, and N200 denominations of the Naira indefinitely.
“For the avoidance of doubt, all versions of the naira, including the old and new designs of N1000, N500, and N200 denominations, as well as the commemorative and previous designs of the N100 denomination, remain valid and continue to be legal tender without any deadlines,” the statement noted.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
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