The rating agency explained that the bank was rated as a result of its good financial strength, operating performance and business profile when compared to the standard established by the agency, adding, “the bank, in our opinion, has a very strong ability to meet its ongoing obligations.”

Continuing, the report said, “The bank maintains a sound capital base, with capital adequacy ratio of 29% as at December 31, 2021, which is well above the regulatory benchmark of 10% for the industry, indicating the bank’s capacity for risk asset growth and overall balance sheet expansion.”

According to DataPro, NOVA Merchant Bank’s funding capacity and liquidity are considered stable and adequate, with a liquidity ratio of 33.7% as at December 2021, adding, “the Bank continued the steady growth of its deposit liabilities during the year under review. Deposit Liabilities rose by 30%”. This reinforces the bank’s deposit mobilisation capacity.”

The ratings are consistent with similar ratings received by the Bank recently from one of the leading rating agencies; Global Credit Rating (GCR).

Reacting to the ratings, the Managing Director/CEO, Nova Merchant Bank Limited, Mr. Nath Ude, said, “DataPro’s affirmations of NOVA’s Long-Term and Short-Term ratings and stable outlook, are confirmation of the bank’s sound governance, strong risk management and good asset quality. Notably, the ratings highlight the strong productive capacity of the Bank driven by sustainable growth.

“With continuous investment in human capital and technology, and more importantly innovative partnerships with credible clients, NOVA is poised to positively influence the banking industry, with the vision to unlock opportunities for our clients across the key growth sectors of the Nigerian economy.”

The Chairman of the Bank, Mr Phillips Oduoza, who expressed his excitement over the consistency of the rating on the Bank said “that the ratings demonstrate sound and good governance structures put in place to ensure long term sustainability of the Bank”.

NOVA Merchant Bank offers an integrated suite of financial solutions covering Financial Intermediation, Wholesale Banking, Investment Banking, Asset Management, Wealth Management, Trade Services, Transaction Banking, Cash Management and Digital Banking.