DataPro, the Technology-Driven Credit Rating Agency has affirmed NOVA Merchant Bank Limited’s Long-Term rating of A+ and short-Term ratings of A1 with Stable Outlook.
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.”
“The rating of the bank is supported by its strong capitalization, good liquidity and very good asset quality”. The bank has low risk and strong ability to meet its ongoing obligations. The ratings further reflect good credit quality, strong corporate governance, regulatory compliance and sustainability, DataPro noted in its report.
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.”
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,” Ude said.
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.
