NOVA Merchant Bank doubles earnings in 2022 – Report

Bisola David
Bisola David
NOVA Merchant Bank doubles earnings in 2022 - Report

NOVA Merchant Bank Limited has released its audited full-year 2022 financial results, with an impressive 107.9% year-over-year increase in profit before tax and a 98.2% group-year-over-year increase in profit before tax.

Due to the innovative services and top-notch customer service, both funded and unfunded income greatly increased.

Notably, the Group keeps expanding its market share, which is evidenced by the 30% growth in customer deposits and its consistent penetration across key growth sectors.

Asset quality is still very high, as evidenced by the Non-Performing Loan Ratio of 0.2%, which highlights the top-tier governance and managerial rigor used to produce high-quality assets and ensure efficient risk management.

Highlights from the audited full-year financial reports for 2022 are as follows:

Gross Earnings: N23.34 billion, up from N17.03 billion in 2021FY (37.01% YoY growth) Income Statement

Fees and other income: N6.70 billion, a 34.9% YoY increase from N4.97 billion in 2021FY.

Profit Before Tax: N3.50 billion, representing a 107.9% rise from the previous year.

N3.34 billion, or 98.2% more than the previous year.

The Bank’s profit after tax increased by 102.9 percent year over year to N3.21 billion from N1.58 billion in 2021FY.

Group: N3.34 billion, translating to 98.2% year-on-year growth.

Profit After Tax:
. Bank: N3.21 billion, compared to N1.58 billion in 2021FY (102.9% YoY growth)

. Group: N3.11 billion, compared to N1.61 billion in 2021FY (93.7% YoY growth).

The cost of risk remains modest at 0.14%, reinforcing outstanding asset quality.

Balance Sheet:
Total Assets: N279.9 billion, compared to N244.2 billion as at 2021FY (14.6% YoY growth).

Deposit: N152.01 billion; strong 30.0% year-on-year growth from N116.9 billion.
Shareholders’ Funds: N26.77 billion, up 13.1% YoY growth; reflecting strong internal capital generation.

The capital adequacy ratio currently stands at 23.24%, which is two times the minimum regulatory requirement, supporting the balance sheet’s soundness and providing headroom for sustainable expansion.

The Chairman of the Board, Phillips Oduoza, commented on the outcomes and broader accomplishments of the Group, saying: “It’s exciting that the Group continues to sustain its remarkable growth trajectory since inception, leveraging on innovative offerings and customer service excellence to deepen market penetration and continuously gain market share across all segments of the business.

“I am very happy with the good governance practices and diligence of the Management in preserving the asset quality of the Bank, an achievement that has become a standard in the sector. Despite the difficult economic climate, the Bank continues to show dedication to customers’ financial goals and support their overall business growth.

“As we continue to invest in sustainable measures that ensure the resilience of our firm to changing economic cycles, we are more bullish than ever about the Nigerian economy and, more critically, our business.

“We are committed to our customer’s success and will keep assisting our HNI clients throughout their financial lives, including through our wealth management services and advisory solutions.

“We would continue to be dependable partners for our business clients, assisting them with our specialized services that maximize their financial results.

“It is our commitment to continuously pioneer new ideas and open up new doors for the prosperity of our business and our customers.”

Nath Ude, the Managing Director/Chief Executive Officer of the company, also commented on the findings, saying: “In keeping with our goal to support clients’ growth, Nova Merchant Bank continues to develop innovative financing arrangements to satisfy our customers’ changing demands across important growing industries.”

He also noted that in addition to utilizing the increased array of offerings to give a distinctive customer experience, the high capitalization and liquidity ratios improve our capabilities to underwrite excellent transactions. He expressed happiness that customers’ devotion not only helps the business expand but also contributes to financial growth and sustainability.

“We recorded noteworthy growth across all balance sheet lines and a 107.9% increase in profit before tax, which reflects the success of our strategy and the team’s ability to carry it out.

“We continue to invest in new technologies, such as our strong digital platform, to provide our customers with great service experiences.

“Nova Merchant Bank is a positive disruptor and will keep driving innovation, investments in technology, and risk management methods that modernize financial services in Nigeria, as we stay focused on opening up new prospects for our prized clients.

“We would consistently provide our customers with exceptional service while generating superior value for all stakeholders.”

The Nigerian merchant bank NOVA Merchant Bank, which has an investment grade rating, provides a comprehensive array of financial services, including financial intermediation, wholesale and investment banking, Treasury Services, asset and securities management, trade services, cash management, transaction, and digital banking.

Renowned for its cutting-edge products and digital platforms, Nova leads the sector with fresh ideas, opening up new chances for its rapidly expanding clientele as it steadily increases its market share across all industry sectors.

Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *