‘Commercial banking licence will streamline our operations, boost stability’
Nova Merchant Bank, yesterday, said commercial banking licence would help the bank to streamline its activities and stabilise its operation.
The bank received approval from its shareholders at the sixth yearly general meeting held, in Lagos, on Wednesday, to undertake full commercial banking operations.
The shareholders believed that the bank remains well-positioned to sustain and build upon its growth legacy.
According to the bank, the decision would help further streamline its operations, bolster its financial stability, and foster sustainable growth across its businesses.
At the meeting, the company’s board unveiled their comprehensive restructuring plans on how the bank would be converted from a merchant bank to commercial bank.
Chairman, NOVA Merchant Bank, Phillips Oduoza, who addressed shareholders at the meeting said: “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.
“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 making it possible for more banking customers across the nation to enjoy the products and services of NOVA Bank.”
NOVA’s Managing Director, Nath Ude, said with the new license, the bank is poised to extend its comprehensive range of financial services throughout Nigeria and strengthen 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.
“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,” the MD stated.
Ude restated the bank’s commitment to continue to invest in new technologies, as well as its robust digital platform to create exceptional service experience for its customers.
Shareholders also ratified the bank’s result for the full year ended December 31, 2022, where the bank recorded outstanding performance and significant growth across all its indicators on the back of innovative offerings and exceptional customer service.
Specifically, total assets grew by 14.6 per cent to close 2022 at N279.9 billion up from N244.2 billion recorded the previous year; while profit before tax rose significantly by 107.9 per cent to close the year 2022 at N3.5 billion.
Profit after tax also recorded a similar feat, as it jumped from N1.58 billion in 2021 to N3.21 billion in the year under consideration, representing an impressive growth of 102.9 per cent.
Meanwhile, transactions on the floor of Nigerian Exchange (NGX) continued in an upbeat yesterday, as positive sentiments in many bluechip stocks lifted capitalisatiion further by N94 billion.
At the close of transactions yesterday, market capitalisation of listed equities increased by 0.27 per cent to N34.81 trillion from N34.716 trillion reported the previous day.
The All Share Index also appreciated by 173.49 basis points to 63930.72 points from 63757.23 points traded the previous day.
On the price movement chart, UPL led gainers chart, adding 10 per cent to close at N2.42 kobo. Academy Press gained 9.95 per cent to close at N2.43 kobo, Chellaram appreciated by 9.91 per cent to close at N2.33 kobo while Ikeja Hotel rose by 9.38 per cent to close at N2.80 kobo.
On the contrary, Courtvellle Business Solutions topped the losers chart, declining by 9.86 per cent to close at 64 kobo, FTNCocoa trailed with 9.66 per cent to close at N1.87 kobo, Abbey Building Society dipped by 9.49 percent to close at N1.25 kobo. May&Baker dipped by 9.18 per cent to close at N1.24 kobo, UPDC declined by 8.55 per cent to close at N1.07 kobo.
Volume of trades increased 884.508 million, representing 186.81 per cent as investors traded 1.358 billion shares valued at N18.066 billion in 7179 deals against 473.492 million shares worth N10.08 billion in 7403 deals .
Transaction the shared of United Bank for Africa led market activities during the day, exchanging 961.501 million share worth N13.3 billion, Sterling Bank followed with account of 43.662 million shares worth N158.9 million, FBNHoldings exchanged 40.316 million shares worth N720 million, Japaul Gold traded 35.954 million shares valued at N28.04 million, Universal Insurance sold a total of 35.089 million shares valued at N8.266 million.
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.