• Thursday, July 25, 2024
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NOVA doubles full year 2022 pre-tax profit

Nova Merchant Bank raises salaries by 50%

NOVA Merchant Bank Limited has announced its Audited Full Year 2022 financial results, showing an outstanding 107.9 percent year-on-year (YoY) growth in profit before tax (PBT) and the group year-on-year profit before tax growth of 98.2percent, as both funded and non-funded income grew significantly on the back of innovative offerings and exceptional customer service.

Notably, the Group continues to gain market share, a reflection of its steady penetration across key growth sectors, as reflected in the 30percent growth in customer deposits. Asset quality remains exceptional, with Non-Performing Loan ratio of 0.2percent, underscoring the best-in-class governance and management discipline in creating quality assets and ensuring effective risk management.

Goss Earnings of N23.34 billion, compared to N17.03 billion in 2021FY (37.01percent YoY growth), Fees and Other Income of N6.70 billion, compared to N4.97 billion in 2021FY (34.9percent YoY growth)

Profit Before Tax: Bank: N3.50billion, translating to 107.9percent year-on-year growth. Group PBT of N3.34billion translates to 98.2percent year-on-year growth. Profit After Tax: Bank (N3.21 billion) compared to N1.58 billion in 2021FY (102.9percent YoY growth). Group: N3.11 billion, compared to N1.61 billion in 2021FY (93.7percent YoY growth). Cost of risk remains modest at 0.14percent, reinforcing outstanding asset quality.

Balance Sheet:

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

Deposit: N152.01 billion; strong 30percent year-on-year growth from N116.9 billion. Shareholders’ Funds: N26.77 billion, up 13.1percent YoY growth; reflecting strong internal capital generation.

Capital adequacy ratio stands at 23.24percent, 2x minimum regulatory requirement, reinforcing the strength of the balance sheet and headroom for sustainable growth.

Read also: Bank of Industry Group’s full year 2022 profit rises by 15.6%

Commenting on the results and broader achievements of the Group, Phillips Oduoza, Chairman of the Board, NOVA Merchant Bank Limited noted: “It’s exciting that the Group continues to sustain its remarkable growth trajectory since inception, leveraging on innovative offerings and customer service excellence in deepening market penetration and continuously gaining market share across all segments of the business. I am particularly pleased with the sound governance practice and diligence of the Management in upholding the asset quality of the Bank, a feat which has become a benchmark in the industry. Notwithstanding the challenging economic environment, the Bank continues to demonstrate commitment to customers’ financing objectives and supporting their overall business growth. In reciprocal, we continue to gain a larger share of our customers’ wallets and win new clients, as reflected in the 37percent growth in gross earnings, buoyed by stellar performance of both funded and non-funded income. The strength of our balance sheet, our exceptional service, bespoke financing solutions and new thinking are uncommon qualities that continue to distinguish our Bank.”

“More than ever, we are optimistic on the Nigerian economy and more importantly our business, as we continue to invest in sustainable strategies that ensure the resilience of our business to varying economic cycles. We are dedicated to the success of our customers and would continue to support our HNI clients through their financial life cycle, including through our wealth management offerings and advisory services. We would remain trusted partners to our corporate clients, supporting them through our tailored offerings that optimize their financial outcomes. It is our commitment to continuously lead new thinking and unlock new opportunities for the mutual prosperity of customers and our business.”

Also speaking on the results, Nath Ude, Managing Director/Chief Executive Officer,
NOVA Merchant Bank Limited said; “In keeping to our pledge of supporting clients’ growth, Nova Merchant Bank continues to create novel financing structures to meet dynamic needs of our customers across key growth sectors. The strong capitalisation and liquidity ratios reinforce our capacity to underwrite quality transactions, in addition to leveraging our expanded scope of offerings in delivering unique customer experience. I am pleased that the loyalty of our clients does not only spur our business growth; it also reinforces our earnings growth and sustainability. We achieved a 107.9% growth in profit before tax and recorded notable growth across all balance sheet lines, reflecting the success of our strategy and the execution capacity of our team.”

“We continue to invest in new technologies, including our robust digital platform, to create exceptional service experience for our customers. Nova Merchant Bank is a positive disruptor and would continue to lead innovation and investments in technology and risk managements practices that revolutionize financial services in Nigeria, as we remain focused on unlocking new opportunities for our esteemed clients. We would sustainably deliver exceptional service to our customers, as we create superior value for all stakeholders,” the CEO added.