A Decade of Growth Culminates in Record-Breaking Performance for Coronation Merchant Bank
Coronation Merchant Bank, a leading financial institution in Nigeria, marked its 10th anniversary with an exceptional financial performance in 2024, solidifying its position as a key player in the Nigerian merchant banking landscape. The bank reported a remarkable 283% surge in profit before tax, reaching N13.4 billion, compared to N3.5 billion in 2023. This impressive growth was mirrored in the profit after tax, which soared by 303% to N12.9 billion from N3.2 billion in the preceding year. This outstanding performance, announced during the bank’s 10th Annual General Meeting, underscores its strategic prowess, resilience, and commitment to delivering sustainable value to stakeholders.
The bank’s robust financial performance was driven by a significant 58% year-on-year increase in gross earnings, reaching N97.1 billion. This remarkable revenue growth highlights the bank’s ability to capitalize on market opportunities and effectively manage its operations. Furthermore, shareholders’ funds witnessed a substantial increase to N45.8 billion, further solidifying the bank’s financial strength and stability. Total assets also experienced growth, reaching N558.6 billion from N524.5 billion in 2023, demonstrating the bank’s expanding footprint and influence within the financial sector. The return on average equity nearly doubled to an impressive 19%, a testament to the bank’s enhanced capital efficiency and operational discipline.
Chairman Babatunde Folawiyo attributed the bank’s success to its unwavering adherence to sound governance principles, a clear strategic direction, and a dedicated team. He emphasized that the 2024 results not only validated the bank’s strategic approach but also served as a powerful motivator for future growth. Folawiyo expressed confidence in the bank’s ability to "move markets, shape outcomes, and redefine merchant banking in Africa," highlighting its ambition to be a transformative force within the industry. The Chairman’s remarks reflect the bank’s commitment to long-term value creation and its aspiration to establish a legacy of excellence in the African financial landscape.
Acting Managing Director/Chief Executive Officer, Paul Abiagam, echoed the Chairman’s sentiments, describing 2024 as a pivotal year for Coronation Merchant Bank. He highlighted the influence of regulatory reforms and macroeconomic shifts, which created both challenges and opportunities within the financial sector. Abiagam credited the bank’s adaptability and strategic responsiveness for its ability to navigate these complexities and achieve triple-digit earnings growth, exceeding internal benchmarks. Looking ahead, he reiterated the bank’s ambition to become the most respected Nigerian merchant bank on the continent. This ambitious goal will be pursued through a continued focus on unlocking value for clients, strengthening stakeholder trust, and delivering sustainable returns, further reinforcing the bank’s dedication to excellence and long-term growth.
Coronation Merchant Bank’s strategic initiatives during 2024 further solidified its growth trajectory. The bank introduced three new business verticals – Public Sector, Financial Institutions, and Affluent Banking – demonstrating its commitment to expanding its market reach and catering to a wider range of client segments. This strategic move aims to enhance sector-specific expertise, strengthen client relationships, and drive further growth. The bank also played a crucial role in supporting Nigeria’s equity capital markets by facilitating capital raises for four of the country’s leading banks, aligning with the Central Bank of Nigeria’s recapitalization directive. This involvement underlines the bank’s commitment to contributing to the stability and growth of the Nigerian financial system.
Coronation Merchant Bank’s financial prudence is evident in its management of customer deposits and risk assets. Customer deposits increased to N187.4 billion, indicating growing trust and confidence in the bank’s services. Simultaneously, the bank maintained a cautious approach to risk management, with total risk assets at N136.6 billion, compared to N166.2 billion in 2023. This prudent risk management strategy reflects the bank’s commitment to maintaining a strong financial position and safeguarding stakeholder interests. Looking forward, Coronation Merchant Bank remains committed to its strategic pillars of sustainable profitability, digital innovation, and broader market leadership, as it strives to become a transformative force in Nigeria’s merchant banking sector. The bank’s consistent growth and strategic initiatives position it for continued success and solidify its role as a key contributor to the Nigerian financial landscape. This continued focus on innovation and sustainable growth positions the bank to capitalize on emerging opportunities and navigate the evolving financial landscape with confidence.
