DataPro, the Technology-driven credit rating agency, has affirmed NOVA Merchant Bank Limited’s long-term rating of A+ and short-term ratings of A1 with a stable outlook.
The rating agency explained that the bank was rated as a result of its good financial strength, operating performance, and business profile when compared to the standard established by the agency.
“The Rating of the Bank is supported by its strong capitalization, good liquidity, and very good asset quality,” DataPro noted in its report. “The ratings further reflect good credit quality, strong corporate governance, regulatory compliance, and sustainability.”
According to the report, the bank maintains a capital adequacy ratio of 29 percent as of December 31, 2021, which is well above the regulatory benchmark of 10 percent for the industry, indicating the bank’s capacity for risk asset growth and overall balance sheet expansion.
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DataPro also noted that NOVA Merchant Bank’s funding capacity and liquidity are adequate with a liquidity ratio of 33.7 percent as of December 2021, with deposit liabilities rising by 30 percent reinforcing the bank’s deposit mobilisation capacity.
The ratings are consistent with similar ratings received by the bank recently from one of the leading rating agencies; Global Credit Rating (GCR).
Reacting to the ratings, the Managing Director/CEO, Nova Merchant Bank Limited, Nath Ude, said, “With continuous investment in human capital and technology, and more importantly innovative partnerships with credible clients, NOVA is poised to positively influence the banking industry, with the vision to unlock opportunities for our clients across the key growth sectors of the Nigerian economy.”
The Chairman of the Bank, Phillips Oduoza, said, “that the ratings demonstrate sound and good governance structures put in place to ensure the long-term sustainability of the Bank”.
NOVA Merchant Bank offers an integrated suite of financial solutions covering Financial Intermediation, Wholesale Banking, Investment Banking, Asset Management, Wealth Management, Trade Services, Transaction Banking, Cash Management, and Digital Banking.
