GCR Upgrades Nova’s Rating

The Global Credit Rating (GCR) has upgraded Nova Merchant Bank’s Long Term Issuer Rating from BBB- to BBB, with a stable outlook.

The reasons given for the upgrade included the bank’s strong capitalisation, risk position, liquidity and evolving brand.

The upgrade in the bank’s rating comes few days after Datapro reaffirmed the “A” rating of the bank’s N10 billion 7-year subordinated unsecured bond which was oversubscribed by 300 per cent when initially issued.

The achievement also followed the recent publication of the bank’s financial results for full year 2020 in which it declared a profit after tax of N3.49 billion in 2020, compared with N1.65 billion in 2019.

The bank also achieved a 130 per cent increase in gross earnings while its cost to income ratio declined from 55 per cent in 2019 to 44 per cent in 2020.

According to the MD/CEO of the bank, Mr. Nath Ude, “the achievement of a ratings upgrade given the headwinds witnessed in the economy represents another positive development in the bank this year following our impressive financial performance, resilience and the reaffirmation of the “A” rating on our bond.”

The Chairman of NOVA Merchant Bank, Mr. Phillips Oduoza, further noted that, “an upgrade in the bank’s rating given the challenging macroeconomic context demonstrates the efficiency of the various governance structures put in place to secure the long term sustainability of the bank. It provides a strong foundation for the continuation of our growth trajectory.”

NOVA Merchant Bank offers an integrated suite of financial solutions covering wholesale banking, investment banking, asset management, wealth management, trade services, transaction banking, cash management and digital banking.