Credit Rating Agency (CRA), DataPro, has affirmed Nova Merchant Bank Limited’s long-term rating to “A+” with a stable outlook for the year 2021/2022.
The agency, in its latest report, explained that when compared to its standard, the “A+” indicates low risk, which shows very good financial strength, operating performance and business profile.
The bank, according to the rating agency, has a strong ability to meet ongoing obligations.
It further stated that the DataPro rating committee approved the rating after an assessment of the bank’s financial performance, governance risk and compliance, as well as risk factors of its current healthy profile in the medium to long-term period.
Accordingly, the bank’s share capital remained N16b (Yr. 21).
However, the bank’s equity grew marginally in 2021 by three per cent from N22.7b (Yr. 20) to N23.5b (Yr. 21).
Overall, the bank’s assets grew by 34 per cent from N182b (Yr. 20) to N242b (Yr. 21).
This was largely driven by the increased loans and advances, pledged assets and balance with banks.
The report stated that the bank also continued the steady growth of its deposit liabilities during the year under review.
Deposit liabilities rose from N89.6b (Yr. 20) to N116.8b (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.
“Nova Merchant Bank Limited had a short-term rating to “A1”, which indicates good credit quality and satisfactory quality for timely payments of financial commitments,” it said.
