Coronation Merchant Bank Receives Fitch Ratings Upgrade

Date:

June 11, 2024 – Coronation Merchant Bank has achieved a significant ratings upgrade from Fitch Ratings, with its Long-Term Issuer Default Rating (IDR) rising to ‘B-‘ from ‘CC’, and its Viability Rating (VR) to ‘b-‘ from ‘cc’. The bank’s National Long-Term Rating has also been upgraded to ‘BBB-(nga)’ from ‘B+(nga)’, with stable Outlooks assigned to both the Long-Term IDR and National Long-Term Rating.

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The upgrade underscores Coronation Merchant Bank’s strengthened capital position, attributed to a successful rights issue and the divestment of foreign currency-denominated equity investments. Fitch noted that these measures have significantly mitigated funding instability risks, bolstering the bank’s core profitability amidst a more favorable regulatory environment, including a softened Cash Reserve Ratio (CRR) regime for merchant banks.

According to Fitch, “Coronation Merchant Bank Limited’s ratings reflect its standalone creditworthiness, supported by a niche franchise and business model, strong asset quality metrics, and prudent risk management practices despite operating in Nigeria’s challenging economic landscape.”

Paul Abiagam, Deputy Managing Director of Coronation Merchant Bank, commented on the ratings upgrade, stating, “Our comprehensive upgrade by Fitch reflects our commitment to strategic initiatives that enhance financial stability and operational resilience. It underscores the dedication of our team and reinforces our pledge to maintain high standards of financial management and deliver value to stakeholders.”

Under the leadership of Chairman Tunde Folawiyo and founder Aigboje Aig-Imoukhuede’s vision, Coronation Merchant Bank has continued to navigate sectoral challenges, achieving notable financial milestones. The bank reported a substantial increase in Profit Before Tax (PBT) to N3.48 billion for the 2023 financial year, with a strong performance carrying into Q1 2024, recording a PBT of N1.40 billion.

The board’s strategic appointments, including Paul Abiagam as Deputy Managing Director, Arini Awotunde as Chief Financial Officer, and Saheed Alamutu as Chief Risk Officer, have further strengthened the bank’s executive team, positioning Coronation Merchant Bank for sustained growth and leadership in Africa’s merchant banking sector.

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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