Banking
Coronation Merchant Bank’s Management Has High Degree of Credibility—Fitch
By Modupe Gbadeyanka
A renowned global rating agency, Fitch Ratings, says the management team of Nigeria-based Coronation Merchant Bank Limited has demonstrated “a high degree of credibility.”
In a statement to announce the rating of the bank’s Long-Term Issuer Default Rating (IDR) at ‘B-‘ with a negative outlook, Fitch said the company’s “strategy is well defined although execution could be hampered under current difficult operating conditions.”
In the statement made available to Business Post on Monday, it was stated that apart from the management quality being “a relative strength,” it was equipped with “experience and depth commensurate with the complexity of the business.”
The rating agency noted that the company has good asset quality, reporting a zero impaired loans (IFRS 9 Stage 3)/gross ratio at end-1H20, which has also been the case for the last four financial years.
“This reflects the bank’s lower risk business model and risk management capability,” it noted.
“Given the severity of the economic crisis, we expect a modest rise in Stage 2 and Stage 3 loans over the next 18 months.
“Asset quality risks are exacerbated by very high credit concentrations by the borrower and significant foreign-currency-denominated trade loans (forming 60% of total loans at end-1H20),” the statement said.
It was noted that bank’s viability rating (VR) was put at ‘b-‘, while the national long-term rating was put at ‘BBB(nga)’ to reflect Nigeria’s (B/Negative) challenging and volatile operating environment, which influences the firm’s financial and non-financial rating factors.
“The negative outlook on Coronation Merchant Bank’s long-term IDR reflects our view that prevailing operating conditions create downside risks to our assessment of the bank’s funding and liquidity profile as well as pressure on asset quality and earnings, but there is a degree of tolerance in these factors,” it said.
Fitch said in the statement that the lender’s primary risk exposure is to short-term (up to one year) self-liquidating corporate loans and traditional trade finance and Nigerian treasury bills.
“This is balanced by the bank’s good management of credit and market risks. Operational risk is inherent in the business but losses are low,” it said.
It was stated that the bank is well-capitalised, reporting Tier 1 and total capital adequacy ratios of 16.6 per cent and 17.2 per cent, respectively, at end-1H20.
“However, capital ratios have modestly declined from end-2019 due to fast growth and currency devaluation. Fitch expects further modest capital pressure to come from lower earnings,” it said.
The statement said the company’s corporate deposits are highly concentrated by name and around 17 per cent were in foreign currency at end-1H20.
“Given the nature of its trade finance business, the bank has a reliance on short-term foreign currency funding (around 25 per cent of its total foreign currency funding), which could decline if sovereign risks rise, leading to pressure on foreign currency liquidity.
“Balance sheet liquidity is underpinned by the short-term nature of the bank’s trade finance assets and large holdings of liquid assets. The bank is highly liquid in local currency but conversion to foreign currency is challenging under current market conditions,” Fitch said.
Coronation Merchant Bank, a leading independent merchant bank, was established in 2015, and it engages in corporate and trade finance, domestic capital markets and investment banking.
But its funding structure is a relative rating weakness as the bank is funded entirely by price and confidence sensitive wholesale funding, including corporate deposits, short-term bank borrowings and commercial paper. Around 37 per cent of the firm’s non-equity funding was in foreign currency at end-1H20.
By Adedapo Adesanya
Zenith Bank Plc has announced the successful completion of its acquisition of the entire issued share capital of Paramount Bank Kenya Limited (PBL), following the receipt of all necessary regulatory approvals in both Nigeria and Kenya.
The development marks a significant milestone in the bank’s regional expansion strategy, reinforcing its ambition to deepen its presence across Sub-Saharan Africa.
The acquisition provides Zenith Bank with a strategic entry into the East African market, positioning it to better support cross-border trade and serve its growing base of regional and international clients.
“This acquisition marks a significant step towards our long-term strategic growth agenda and a strong inroad into the East African markets. It further reinforces the Bank’s position as a leading financial institution in Sub-Saharan Africa and affirms the Bank’s mantra of following our customers’ businesses,” the lender said in a statement.
The development comes after Zenith Bank previously refuted recent media reports and online commentary in November 2025, claiming that the bank is in the process of acquiring Paramount Bank in Kenya as part of its expansion into the East African market.
The move also strengthens Zenith Bank’s competitive positioning within Africa’s banking landscape, as Nigerian tier-one banks continue to pursue regional expansion to unlock new growth opportunities. Others like Access Bank and GT Bank have expanded reach in the last few years.
It will be recalled that the management of Zenith Bank, led by Ms Adara Umeoji, at the Nigeria Exchange (NGX), assured shareholders during the recapitalisation exercise that proceeds from the rights issue and public offer would be allocated to the global expansion of Zenith Bank operations, alongside increased funding for the real sector and upgrading technology infrastructure.
According to her, “35 per cent of the proceeds will fund the bank’s global expansion strategy, increasing its footprint in Africa and other parts of the world. 45 per cent will be deployed as working capital to support the real sector of the economy, and 20 per cent will be used to enhance the bank’s IT infrastructure and digital capabilities.”
Last month, Zenith Bank also expanded its operations to the United Kingdom by opening its Manchester branch office. It also unveiled plans to secure a full listing on the London Stock Exchange, one of the world’s leading stock exchanges.
Banking
Proxy Share Acquisition: Nothing to Worry About—LivingTrust Mortgage Bank Assures Shareholders
By Aduragbemi Omiyale
The board of LivingTrust Mortgage Bank Plc has assured the investing public, particularly its shareholders, that its operations are not being affected by reports of an alleged proxy share acquisition surrounding the organisation.
It was claimed that an investor attempted to take over the control of the real estate lender with funds alleged to have been from questionable sources.
In a clarification to the investing public through the Nigerian Exchange (NGX) Limited on Tuesday, April 7, 2026, the company said it cannot confirm if security operatives investigating the claims have submitted their report to the Central Bank of Nigeria (CBN).
However, it assured that, “Our bank is stable and that in the event of any change in ownership, we will file the necessary formal notifications and publish detailed announcements.”
In the notice today, LivingTrust Mortgage Bank narrated that, “As a company listed on the Growth Board of NGX, there are regular movements on the bank’s shareholder register.
“The bank’s monitoring of material movements showed an acquisition of 2.24 per cent of its shareholding by Apel Asset Ltd-Nominee, as per its register of June 25, 2025, as obtained from our registrar. However, one month later, in July 2025, the register obtained from the bank’s registrar showed the same shares to be listed in favour of Deril Academy Limited. We are further aware that in July 2025, Deril Academy Limited teamed up with some other shareholders in a takeover attempt via a matter filed in the Federal High Court, Lagos. The attempt failed, and the matter has now been withdrawn.
“Please note that we do not reveal the veil of corporations of juridical entities investing in the shares of the bank, below the level considered statutorily significant.
“While the CBN assesses the source of funds invested in financial institutions, persons purchasing shares of less than 5 per cent of total shareholdings in the open market are not required to be reported to the CBN.”
Business Post reports that the majority shareholders of LivingTrust Mortgage Bank, formerly Omoluabi Mortgage Bank, are Cititrust Holdings Plc and the Osun State Government.
By Adedapo Adesanya
Nigeria’s Bank Verification Number (BVN) registry surged to 68.6 million in the first three months of 2026 from 67.8 million in the last quarter of 2025, reflecting continued uptake of the unique identity platform for bank customers amid new regulatory directives to strengthen the Nigerian financial landscape further.
Data released by the Nigeria Inter-Bank Settlement System (NIBSS) showed that the database expanded by 754,128 in the first quarter of the year.
Last year, the sector recorded 4.3 million new registrations, largely driven by the Non-Resident Bank Verification Number (NRBVN) initiative, which allows Nigerians in the diaspora to register remotely, thereby boosting cross-border financial inclusion.
The data for fresh enrolments in 2026 showed a slowing rate of registrations, with fewer than one million recorded in the first three months. The total number of active bank accounts in Nigeria stood at over 320 million as of March 2025, highlighting a gap between BVN coverage and the broader banking population. While a single BVN can be linked to multiple accounts, unlinked accounts remain a challenge for financial oversight.
Last month, the Central Bank of Nigeria (CBN) introduced a revised BVN regulatory framework to strengthen identity verification and fraud prevention. Among the new provisions, only individuals aged 18 and above are eligible for BVN enrolment, and customers are now permitted to update the phone number linked to their BVN only once.
The apex bank also directed financial institutions to maintain a temporary watch list of BVNs associated with suspected fraudulent transactions. Affected BVNs remain on the list for up to 24 hours, during which owners are contacted for clarification before further action is taken.
According to the CBN, the measures are designed to tighten fraud monitoring, protect transaction integrity, and enhance identity management across Nigeria’s banking system.
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