Global Credit Rating has upgraded NOVA Merchant Bank’s Long Term Issuer Rating from BBB- to BBB with a stable outlook, citing its strong capitalisation, risk position, liquidity, and evolving brand.

The upgrade comes shortly after Datapro recently reaffirmed the “A” rating of NOVA’s N10bn 7-Year Subordinated Unsecured Bond which was oversubscribed by 300% when initially issued.

This achievement also follows the recent publication of the Bank’s financial results for FY2020 in which it declared a profit after tax of N3.49bn in 2020 compared to N1.65bn in 2019. The Bank also achieved a 130% increase in gross earnings while its cost to income ratio declined from 55% in 2019 to 44% in 2020.

The rating upgrade despite the headwinds witnessed in the economy represents, according to Nath Ude, the Managing Director/Chief Executive Officer, representing “another positive development in the bank this year following our impressive financial performance, resilience and the reaffirmation of the “A” rating on our bond.”

Also commenting, the bank’s chairman, Phillips Oduoza, said the upgraded “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.”