Nova Merchant Bank Records N3.5bn Profit

By InstinctBusiness Apr 19, 20210

Nova Merchant Bank Limited has released its audited results for the financial year ended December 31st 2020, recording growth across its major financial lines.

The bank declared a profit after tax of N3.49 billion in 2020, compared with the N1.65 billion it recorded in 2019. This, represented a 112 per cent increase.

All the key financial parameters recorded major improvement over the prior year performance. For instance, gross earnings showed a quantum leap of 130 per cent growth over 2019, and profit before tax at N3.52 billion recorded a 135 per cent growth over the 2019 figure of N1.5 billion.

On a similar note, the bank recorded a decline in its cost-to-income ratio, from 55 per cent in 2019, to 44 per cent in 2020.

Also, its customer deposits stood at N89.6 billion in 2020, compared to N40.5 billion it recorded in 2019, while loans to customers grew by 71 per cent to N50 billion in 2020, compared to N29.3 billion in 2019.

The bank’s Managing Director and Chief Executive Officer, Mr. Nath Ude, was quoted in a statement yesterday as saying, “Our full year 2020 performance is especially gratifying as we achieved such growth amidst the unprecedented nature of the COVID-19 pandemic and resulting macro-economic headwinds.

“In 2021, we will continue to build on our strong foundation to significantly scale the business by focussing 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.”

The bank’s Chairman, Mr. Phillips Oduoza stated, “I am particularly delighted to see how the Bank has maintained its growth trajectory and improve its efficiency during such a challenging period.

Oduoza added “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.”

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.