NOVA doubles earnings as PBT rises 108% to N3.50bn in 2022

By Onome Amuge

NOVA Merchant Bank Limited ,delivered an outstanding 108 per cent  year-on-year growth in profit before tax (PBT) which rose to N3.50 billion,and the group year-on-year profit before tax of 98.2 per cent to N3.34 billion, as both funded and non-funded income grew significantly on the back of innovative offerings and exceptional customer service.

The financial services solutions firm, in its audited full year 2022 financial results, showed a continuous gain in market share buoyed by steady penetration across key growth sectors, as reflected in the 30 per cent growth in customer deposits.

Asset quality also reflected a strong performance, with a 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.

A breakdown of the company’s financials showed that gross earnings appreciated 37.01 per cent in the year ended December 2022, , compared to N17.03 billion in 2021 FY.

Notably, the bank posted a profit after tax (PAT) of  N3.21 billion, representing 102.9 per cent year-on-year  growth against N1.58 billion in  the corresponding period of 2021. On its part, the group recorded a profit after tax of N3.11 billion, indicating a 93.7 per cent increase compared to N1.61 billion in 2021 full year of 2021.

The bank’s balance sheet showed that total assets grew  14.6 per cent to N279.9 billion, compared to N244.2 billion as at 2021 FY.

Meanwhile, bank deposits for the period under review rose 30 per cent year-on-year to stand at N152.01 billion from N116.9 billion in 2021 FY, while shareholders’ funds appreciated 13.1 per cent to N26.77 billion, reflecting strong internal capital generation.

According to the bank’s financials, capital adequacy ratio stood at 23.24 per cent, twice the minimum regulatory requirement, reinforcing the strength of the balance sheet and headroom for sustainable growth.

Fees and other income rose 34.9 per cent to N6.70 billion, compared to N4.97 billion in 2021 FY, while  cost of risk sustained its modest rate at 0.14 per cent, reinforcing outstanding asset quality.

Commenting on the results and broader achievements of the group,Phillips Oduoza, chairman of the board, noted that it is 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,” he said.

Oduoza also noted that despite 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% 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,” he added.

The board chairman expressed optimism on the Nigerian economy and more importantly the company’s business, while reiterating the company’s commitment to invest in sustainable strategies that ensure the resilience of operations to varying economic cycles.

Oduoza also maintained that the bank is dedicated to the success of its customers and would continue to support its HNI clients through their financial life cycle, including through its 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,”he concluded.

Also speaking on the results, Nath Ude, the managing director/chief executive officer of Nova Merchant Bank stated that the bank, in keeping to its pledge of supporting clients’ growth, has continually created novel financing structures to meet dynamic needs of its customers across key growth sectors.

Ude noted that 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% 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,” he said.

Ude emphasised that the bank continues to invest in new technologies, including its robust digital platform, to create exceptional service experience for customers.

According to the MD, Nova Merchant Bank is a positive disruptor and would continue to lead innovation and investments in technology and risk management practices that revolutionize financial services in Nigeria, as it remains focused on unlocking new opportunities for its esteemed clients. He also assured that the bank would sustainably deliver exceptional service to its customers, while  creating superior value for all stakeholders.