Datapro has reaffirmed the “A” rating on Nova Merchant Bank’s N10bn 7-Year Subordinated Unsecured Bond at a fixed coupon rate of 12% per annum, issued under its N50bn debt issuance programme.
This may not be unconnected with the bank’s recently published financials for the full-year ended December 31, 2020, showing a profit after tax of N3.49bn, compared to N1.65bn in 2019.
The bank also achieved a 130% increase in gross earnings, within the period, while cost to income ratio declined from 55% in 2019 to 44% in 2020.
Commenting on the revalidation, Nath Ude, the Managing Director and Chief Executive, it “builds on the bank’s recent strong financial performance and further validates our go to market approach, business model and value proposition to our customers. It rewards the bank for the resilience it has shown during the challenging economic environment arising from the COVID-19 pandemic.”
Also speaking, Phillips Oduoza, Chairman of NOVA Merchant Bank said the rating recognises the progress made by the bank within “such a short period of time amidst a challenging macroeconomic context.”
He expressed the board’s commitment to supporting the management “towards the achievement of many more successful milestones as the bank’s growth trajectory continues to demonstrate long term sustainability.”
