By Aduragbemi Omiyale
The board of NOVA Merchant Bank has been authorised to transit into a commercial bank in line with its comprehensive restructuring plans.
The approval was given by the shareholders of the lender, which provides funds to large corporations and high-net-worth individuals, at its 6th Annual General Meeting (AGM) in Lagos on Wednesday.
The Managing Director of NOVA Merchant Bank, Mr Nath Ude, thanked the shareholders for the approval, saying with the new license, the bank is poised to extend its comprehensive range of financial services throughout Nigeria and cement its position as a leading player in the Nigerian banking industry.
“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,” he said.
Mr Ude restated the company’s commitment to continue to invest in new technologies, including its robust digital platform, to create exceptional service experiences for its customers.
Also, the Chairman of NOVA Merchant Bank, Mr Phillips Oduoza, explained that the decision to transition would 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.
“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 the firm’s 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,” he said.
During the meeting, shareholders also ratified the bank’s result for the full year ended December 31, 2022, where the lender recorded outstanding performance and significant growth across all its indicators on the back of innovative offerings and exceptional customer service.
Specifically, total assets grew by 14.6 per cent to close 2022 at N279.9 billion, up from N244.2 billion recorded the previous year, while profit before tax rose significantly by 107.9 per cent to close the year 2022 at N3.50 billion.
Further, profit after tax recorded a similar feat, as it jumped from N1.58 billion in 2021 to N3.21 billion in the year under consideration, representing an impressive growth of 102.9 per cent.
