NOVA Merchant Bank Limited has announced its audited financial results for 2022, showing 98.2 per cent in group pre-tax profit.
Gross earnings rose from N17.03 billion in 2021 to N23.34 billion in 2022, an increase of 37 per cent.
Profit before tax jumped by 98.2 per cent toN3.34 billion. Group profit after tax also rose by 93.7per cent from N1.61 billion in 2021 to N3.11 billion in 2022.
The balance sheet of the company also emerged stronger with total assets rising by 14.6 per cent to N279.9 billion compared with N244.2 billion. Customer deposit rose by 30 per cent to N152.01 billion; in 2022 as against N116.9 billion in 2021.Shareholders’ funds increased by 13 per cent to N26.77 billion, in 2022.
The bank’s capital adequacy ratio stands at 23.24 per cent, twice the size of minimum regulatory requirement, reinforcing the strength of the balance sheet and headroom for sustainable growth.
Chairman, NOVA Merchant Bank, Mr. Phillips Oduoza, said the performance of the bank was driven by funded and non-funded income, which grew significantly on the back of innovative offerings and exceptional customer service.
He noted that the report for the year ended December 31, 2022 showed that the group continued to gain market share, a reflection of its steady penetration across key growth sectors, as reflected in the 30 per cent growth in customer deposits.
He pointed out that asset quality remains exceptional, with non-performing loan ratio of 0.2 per cent, underscoring the best-in-class governance and management discipline in creating quality assets and ensuring effective risk management.
“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 37 per cent 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 high networth 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,” Oduoza said.
Managing Director, NOVA Merchant Bank, Mr. Nath Ude, pointed out that in keeping to its pledge of supporting clients’ growth, Nova Merchant Bank continues to create novel financing structures to meet dynamic needs of its customers across key growth sectors.
According to him, the strong capitalization and liquidity ratios reinforce the bank’s capacity to underwrite quality transactions, in addition to leveraging its 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 per cent 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,” Ude said.