NOVA Merchant Bank has acquired shareholder permission to shift into a commercial banking license. During the company’s 6th Annual General Meeting in Lagos on Wednesday, shareholders unanimously agreed that the bank is well-positioned to sustain and improve on its growing heritage.
The company’s Board of Directors seized the opportunity to disclose their thorough restructuring plans on how the bank would transition from a merchant bank to a commercial bank.
Mr. Phillips Oduoza, chairman of NOVA Merchant Bank, addressed shareholders at the meeting and highlighted that the choice to transfer will enable the bank further streamline its operations, strengthen its financial stability, and create sustainable growth across its businesses.
NOVA’s Managing Director, Mr. Nath Ude, elaborated on this, saying that with the new license, the bank is prepared to extend its full range of financial services throughout Nigeria. This will solidify its position as a prominent player in the Nigerian banking industry.
NOVA’s potential as we enter this new chapter of expansion. This strategic decision aligns with our aim of increasing operations and broadening offerings while providing great customer service.
“The Bank’s Management has firmly established a remarkable legacy of growth since its inception and has consistently demonstrated its ability to achieve substantial progress across various parameters,” he continued, “and the commercial banking license will strengthen the Bank’s revenue base, entrench value creation, and impact earnings growth.”
Total assets increased by 14.6% to N279.9 billion at the end of 2022, up from N244.2 billion the previous year, while profit before tax increased by 107.9% to N3.50 billion. Profit after tax achieved a similar accomplishment, rising from N1.58 billion in 2021 to N3.21 billion in the current year, marking a 102.9 percent increase.
NOVA Merchant Bank Limited is a Nigerian merchant bank with an investment grade rating that provides an integrated suite of financial solutions including financial intermediation, wholesale and investment banking, asset and securities management, trade services, cash management, transaction and digital banking. To reflect this strategic shift in its banking license, the bank will announce a new name the MD said.
