TUE, MARCH 12 2019-theG&BJournal-The management and board of directors of Nova Merchant Bank Limited have utilised shareholders’ assets in generating higher profit as the lender continues to focus on scaling its business operation with a view to increasing its share of the market.
Return on equity (ROE) increased to 6.51 percent in December 2018 from 3.08 percent the previous year.
The Bank attributes improved efficiency and profitability amid a tough and unpredictable macroeconomic environment to copious investment in technology, human capital and cost control mechanisms.
Profit and after tax surged by 125 percent to N1.15 billion in December 2018 as against N510.57 million as at December 2017.
The growth at the bottom line (profit|) was largely driven by net gains on financial instruments held for trading, foreign exchange gain, and income tax credit of N545.47 million, N302.42 billion, and 190.39 million.
“Our stellar results are a culmination of the hard work, commitment, resilience, discipline and resourcefulness of all our employees. We have been able to drive strong customer acquisition and deploy leading edge technology whilst optimising our costs,” said Anya Duroha, managing director and CEO of NOVA Merchant Bank.
“We will continue to focus on growing our business, providing solutions tailored to our clients’ needs, building a high performance culture, motivating our employees and creating sustainable value for our shareholders,” said Duroha.
The Bank’s interest income was up 53.27 percent to N1.87 billion in the period under review as against N1.22 billion as at December 2017.
Net interest income followed the same upward trajectory as it increased by 29.31 percent to N1.50 billion despite a 513.37 percent surged in interest expenses to 37.34 percent to N373.34 billion in the period under review.
Operating income stood at N3 billion as at December 2018 while total operating expenses was N1.42o billion, resulting in cost to income ratio of 47.33 percent.
“We have been able to build a strong foundation for the success of the Bank and approach the future with confidence and optimism in our business model, value proposition, clients and employees,” said Phillips Oduoza, Chairman NOVA Merchant Bank Limited.
“We remain committed to the implementation of our over-arching philosophy of ‘New Thinking, New Opportunities’ to create value for all our stakeholders,” said Oduoza.
The Bank will continue to strive to deliver profitable, responsible and sustainable growth. It remains dedicated to its core values of Uniqueness, Passion, Leadership, Integrity, Fairness and Teamwork (UPLIFT) as it believes these echoes will enable it to surpass the expectations of its clients and stakeholders.
By Oliver Abah, Senior Analyst TheG&BJournal
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