Coronation Merchant Bank has remained one of the top-rated merchant Banks in Nigeria as shown by the recently released Rating Report by Agusto &Co , a foremost rating agency in Nigeria.
In the Report, Agustoaffirmed the A+ rating assigned to the Bank with stable outlook and stated that the rating reflects the Bank’s position in the merchant banking space, good capitalisation, good asset quality and good liquidity position.
In preparing the report, the agency took into cognisance the impact of the COVID-19 pandemic,which has led to severe uncertainty surrounding the Nigerian economy.
A review of the Bank’s financial performance showed that as at 31 December 2019, the Bank’s gross loans and advances stood at N72.7 billion, representing a year-on-year increase of 33.9%.
As at FYE2019, the Bank did not record any credit deterioration with the entire credit portfolio classified under stage 1.Core capital grew by 6.3per cent to N33.7 billion as at FYE 2019,more than double the regulatory minimum for merchant banks operating in Nigeria.
As at the same date, the Bank’s capital adequacy ratio stood at19.2per cent surpassing the 10per cent regulatory threshold.
As at March 2020, Coronation MB had about US$310 million in trade finance lines including a $40 million trade finance guarantee facility obtained from theInternational Finance Corporation (IFC). Overall, the rating agency is of the opinion that the Bank is adequately positioned to grow business volumes, albeit moderated by the prevailing economic conditions.