Home Banking NOVA Merchant Bank grows profit by 135% to N3.52b

NOVA Merchant Bank grows profit by 135% to N3.52b

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NOVA Merchant Bank Limited witnessed a major leap in the immediate past financial year with three-digit growths across major performance indicators.

Key extracts of the audited report and accounts for the year ended December 31, 2020 showed that NOVA, a wholesale banker, grew its top-line by 130 per cent while pre-tax profit leapt by 134.7 per cent. The balance sheet of the bank also saw significant growth, enabling the bank to increase loans to customers by some 71 per cent.

The report showed that profit before tax rose from N1.5 billion in 2019 to N3.52 billion in 2020. After taxes, net profit doubled by 112 per cent to N3.49 billion in 2020 compared with N1.65 billion in 2019. The bank recorded a decline in cost-to-income ratio from 55 per cent in 2019 to 44 per cent in 2020. Customer deposits also doubled from N40.5 billion in 2019 to N89.6 billion in 2020. Loans to customers grew by 71 per cent to N50 billion in 2020 compared with N29.3 billion in 2019.

Managing Director, NOVA Merchant Bank Limited, Mr Nath Ude said it was gratifying that the wholesale banker achieved such significant growth amidst the unprecedented nature of the COVID-19 pandemic and resulting macro-economic headwinds in 2020.

“In 2021, we will continue to build on our strong foundation to significantly scale the business by focusing on exceeding the expectations of our customers through innovative financial solutions while expecting our non-bank subsidiaries to start contributing effectively to the group in line with our strategic intent,” Ude said.

Chairman, NOVA Merchant Bank Limited, Mr Phillips Oduoza said it was a delight to see how the bank has maintained its growth trajectory and improve its efficiency during such a challenging period as 2020.

“The bank is well positioned to benefit from the expected upsurge in economic activity and profit from the emerging opportunities this presents as the global economy emerges from the impact of the COVID-19 crisis,” Oduoza said.

NOVA Merchant Bank offers an integrated suite of financial solutions covering wholesale banking, investment banking, asset management, wealth management, trade services, transaction banking, cash management and digital banking.

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