Citing exceptional and innovative customer services, NOVA Merchant Bank Limited on Monday reported a 107.9 percent and 98.2 percent growth respectively in its company and Group performance in its profit before tax earnings for the 2022 financial year.
Details of the performances were contained in the Audited Full Year 2022 financial results, which the bank described as outstanding, as both funded and non-funded income grew significantly.
Highlights of the statement showed that the Group continued to gain market share, as a reflection of its steady penetration across key growth sectors/
Apart from the 30 percent growth in customer deposits, the financial statement showed that Asset quality also remained exceptional, with a non-performing loan ratio of 0.2 percent, underscoring the best-in-class governance and management discipline in creating quality assets and ensuring effective risk management.
While gross income earnings rose by 37.01 percent (year-on-year) to N23.34 billion during the year, compared to N17.03 billion in the 2021 financial year, fees and other incomes also grew by 34.9 percent (year-on-year, from N4.97 billion in 2021 to N6.70 billion during the year under review.
A breakdown of the Profit Before Tax showed that the Bank realized about N3.50 billion, or 107.9 percent growth (year-on-year), while the Group realized about N3.34 billion, or about 98.2 percent growth (year-on-year).
Similarly, Profit After Tax by the Bank grew by 102.9 percent (year-on-year) at about N3.21 billion,compared to N1.58 billion in 2021, while the Group performance of N3.11 billion was 93.7 percent better, compared to N1.61 billion in 2021.
Other details contained in the financial statement showed that cost of risk remained modest at 0.14 percent, reinforcing outstanding asset quality, with Balance Sheet showed total assets value of N279.9 billion, compared to N244.2 billion as at 2021FY (about 14.6 percent growth.
On the other hand, deposit was 30 percent strong at N152.01 billion; year-on-year growth, from N116.9 billion, while Shareholders’ Funds was up by 13.1 percent YoY at N26.77 billion, reflecting strong internal capital generation.
Also, capital adequacy ratio rose by 23.24 percent, twice the minimum regulatory requirement stipulated by the Central Bank of Nigeria, reinforcing the strength of the balance sheet and headroom for sustainable growth.
Reacting to the Bank’s performance and the broader achievements of the Group, the Chairman of the Board, Phillips Oduoza, expressed excitement that the Group continued 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% growth in gross earnings, buoyed by the 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,” Oduoza said.
More than ever, he said the management of the bank remains optimistic about the Nigerian economy and the business, as it continues 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,” he assured.
The Managing Director/Chief Executive Officer, Nath Ude, said in keeping to its pledge of supporting clients’ growth, Nova Merchant Bank would continue to create novel financing structures to meet dynamic needs of its customers across key growth sectors in the economy.
He said 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.”
“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 management 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,”he said.