By Cynthia Ezekwe.
The process to convert to a retail bank for one of Nigeria’s fastest growing wholesale banks, NOVA Merchant Bank, is now in motion following approval received by the board and management from shareholders to approach the authorities for a commercial banking license.
The approval came in a unanimous vote at the sixth annual general meeting of the wholesale banking institution in Lagos on Wednesday on the strength that “the bank remains well-positioned to sustain and build upon its growth legacy.”
To convince shareholders, the board gave shareholders detailed insights into the comprehensive restructuring plans on how the bank will transition from a merchant bank to a commercial banking license.
Phillips Oduoza, board chairman, told shareholders that the decision to transition will help the bank to further streamline its operations, bolster its financial stability, and foster sustainable growth across its businesses.
“I am excited about the prospects of NOVA as we embark on this new growth phase. This strategic move is in line with our vision of expanding operations and diversifying services while providing exceptional services to our valued customers,” Oduoza said.
According to him, the management of the bank has firmly established a remarkable legacy of growth since its inception and has consistently demonstrated its ability to achieve substantial progress across various parameters and the commercial banking license will strengthen its revenue base, entrench value creation, impact earnings growth and sustain higher returns for the shareholders, while affording more banking customers across the nation the opportunity to enjoy the products and services of NOVA Bank.
Nath Ude, who leads the bank as managing director and chief executive officer, further explained that the new licence will allow the the bank extend its comprehensive range of financial services throughout Nigeria and cement its position as a leading player in the Nigerian banking industry, and added that he and his team are already positioned to do this.
“The resounding approval from the shareholders for the transition to a commercial bank reflects their confidence in NOVA’s ability to thrive in the evolving financial landscape. The bank remains resolute in its pursuit of sustainable growth, while continuing to provide its customers with innovative financial solutions. As we transition into a commercial bank, NOVA aims to expand its services and further enhance its position as a trusted provider of cutting-edge financial solutions in Nigeria,” Ude said.
The wholesale bank’s chief executive restated its commitment to continue to invest in new technologies, including our robust digital platform, to create exceptional service experience for its customers.
Meanwhile, for the financial year ended December 31, 2022, shareholders ratified the bank’s result for the full year ended December 31, 2022, where the bank recorded outstanding performance and significant growth across all its indicators on the back of innovative offerings and exceptional customer service.
Total assets grew by 14.6 percent to N279.9 billion up from N244.2 billion recorded the previous year; while profit before tax rose significantly by 107.9 percent to close the year 2022 at N3.50 billion. Profit after tax also recorded a similar feat, as it jumped from N1.58 billion in 2021 to N3.21 billion in the year under consideration, representing a growth of 102.9 percent.
NOVA Merchant Bank Limited is an investment grade rated merchant bank in Nigeria that offers an integrated suite of financial solutions covering financial intermediation, wholesale and investment banking, asset and securities management, trade services
