NOVA Merchant Bank Limited has released its audited results for the financial year ended December 31, 2020, recording growth across its major financial lines.
The bank declared a profit after tax of N3.49bn in 2020 compared to N1.65bn in 2019 which represents a 112% increase. All the key financial parameters recorded major improvement over the prior year performance; Gross earnings showed a quantum leap of 130% growth over 2019 and profit before tax at N3.52bn recorded a 135% growth over the 2019 figure of N1.5bn. On a similar note, the bank recorded a decline in the cost to income ratio from 55% in 2019 to 44% in 2020.
Customer deposits stood at N89.6bn in 2020 compared to N40.5bn in 2019 while loans to customers grew by 71% to N50bn in 2020 compared to N29.3bn in 2019.
The bank’s managing director and chief executive officer Nath Ude said, “Our full year 2020 performance is especially gratifying as we achieved such growth amidst the unprecedented nature of the COVID-19 pandemic and resulting macro-economic headwinds.”
“In 2021, we will continue to build on our strong foundation to significantly scale the business by focussing on exceeding the expectations of our customers through innovative financial solutions while expecting our non-bank subsidiaries to start contributing effectively to the group in line with our strategic intent,” Mr Ude further stated.
The bank’s chairman Phillips Oduoza stated, “I am particularly delighted to see how the bank has maintained its growth trajectory and improve its efficiency during such a challenging period.”
Mr Oduoza added, “The bank is well positioned to benefit from the expected upsurge in economic activity and profit from the emerging opportunities this presents as the global economy emerges from the impact of the COVID-19 crisis.”