Home Industry News Agency rates Nova Merchant Bank A+

Agency rates Nova Merchant Bank A+

by Goddie Ofose
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A leading technology-driven credit rating agency, DataPro,  has in its latest report affirmed Nova Merchant Bank Limited’s long-term rating to “A+” with a stable outlook for the year 2021/2022.

According to a statement, the “A+” indicates a low risk and shows “a very good financial strength,  operating performance and business profile” when compared to the standard established by DataPro.

The CRA says the bank, in its opinion, has a strong ability to meet its ongoing obligations

The statement noted that the CRA  approved the rating after an assessment of the bank’s financial performance, governance risk & compliance as well as risk factors of its current healthy profile in the medium to long-term period.

It said the bank’s share capital remained N16bn (Yr. 21). However, the bank’s equity grew

marginally in 2021 by three per cent from N22.7bn in 2020 to N23.5bn in 2021). Overall, the bank’s assets grew by 34 per cent from N182bn in 2020 to N242bn in 2021). This was largely driven by the increased loans and advances, pledged assets and balance with banks.

The statement read in part, “The bank also continued the steady growth of its deposit liabilities during the year under review. Deposit liabilities rose from N89.6bn (Yr. 20) to N116.8bn (Yr. 21). This was a growth rate of 30 per cent. The growth was largely due to increased term deposits during the year. The rating of the bank is supported by its strong capitalisation, good liquidity, and very good asset quality.

It further said Nova Merchant Bank Limited had a Short-Term Rating of “A1” which indicates good credit quality and satisfactory capacity for timely payment of financial commitments.

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