TheCable

NOVA Merchant Bank says it has received approval from its shareholders to transition into commercial banking.

In a statement made available to TheCable, the company said the shareholders gave their unanimous approval during its 6th annual general meeting (AGM) in Lagos on Wednesday.

Phillips Odunola, chairman, NOVA Merchant Bank, who addressed shareholders at the meeting, explained that the decision to transition will 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,” he said.

“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.

“ The commercial banking license will strengthen the Bank’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.”

On his part, Nath Ude, the bank’s managing director, said that with the new license, the bank is poised to extend its comprehensive range of financial services throughout the country 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,” he said.

“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.”

Ude said the bank remained committed to investing in new technologies in order to create exceptional service experience for its customers.

At the meeting, shareholders also ratified the bank’s result for the full year ended December 31, 2022.

The bank said during the period under review, it recorded outstanding performance and significant growth across all its indicators.

“Specifically, total assets grew by 14.6% to close 2022 at N279.9bn up from N244.2bn recorded the previous year; while profit before tax rose significantly by 107.9 per cent to close the year 2022 at N3.50bn,” the statement reads.

“Profit after tax also recorded a similar feat, as it jumped from N1.58bn in 2021 to N3.21bn in the year under consideration, representing an impressive growth of 102.9%.”