NOVA DOUBLES EARNINGS, REFLECTING EXCEPTIONAL SERVICE AND INNOVATIVE OFFERINGS

Lagos, Nigeria – 17 April 2023 – Nova Merchant Bank Limited (“NOVA or “the Bank”), announced its
Audited Full Year 2022 financial results, showing an outstanding 107.9% year-on-year growth in
profit before tax and the group year-on-year profit before tax of 98.2%, as both funded and nonfunded income grew significantly on the back of innovative offerings and exceptional customer
service. Notably, the Group continues to gain market share, a reflection of its steady penetration
across key growth sectors, as reflected in the 30% growth in customer deposits. Asset quality
remains exceptional, with Non-Performing Loan ratio of 0.2%, underscoring the best-in-class
governance and management discipline in creating quality assets and ensuring effective risk
management.

Highlights:
Income Statement
o Gross Earnings:
N23.34 billion, compared to N17.03 billion in 2021FY (37.01% YoY growth),
o Fees and Other Income:
N6.70 billion, compared to N4.97 billion in 2021FY (34.9% YoY growth)
o Profit Before Tax:
▪ Bank: N3.50billion, translating to 107.9% year-on-year growth.
▪ Group: N3.34billion, translating to 98.2% year-on-year growth.

o Profit After Tax:
▪ Bank: N3.21 billion, compared to N1.58 billion in 2021FY (102.9% YoY growth).
▪ Group: N3.11 billion, compared to N1.61 billion in 2021FY (93.7% YoY growth).
o Cost of risk remains modest at 0.14%, reinforcing outstanding asset quality.

Balance Sheet
o Total Assets: N279.9 billion, compared to N244.2 billion as at 2021FY (14.6% YoY growth).
o Deposit: N152.01 billion; strong 30.0% year-on-year growth from N116.9 billion.
o Shareholders’ Funds: N26.77 billion, up 13.1% YoY growth; reflecting strong internal capital
generation.
o Capital adequacy ratio stands at 23.24%, 2x minimum regulatory requirement, reinforcing the
strength of the balance sheet and headroom for sustainable growth.

Commenting on the results and broader achievements of the Group, the Chairman of the Board, Mr.
Phillips Oduoza, noted: “It’s exciting that the Group continues to sustain its remarkable growth
trajectory since inception, leveraging on innovative offerings and customer service excellence in
deepening market penetration and continuously gaining market share across all segments of the
business. I am particularly pleased with the sound governance practice and diligence of the
Management in upholding the asset quality of the Bank, a feat which has become a benchmark in
the industry. Notwithstanding the challenging economic environment, the Bank continues to
demonstrate commitment to customers’ financing objectives and supporting their overall business
growth. In reciprocal, we continue to gain a larger share of our customers’ wallets and win new
clients, as reflected in the 37% growth in gross earnings, buoyed by stellar performance of both
funded and non-funded income. The strength of our balance sheet, our exceptional service, bespoke
financing solutions and new thinking are uncommon qualities that continue to distinguish our Bank.”

“More than ever, we are optimistic on the Nigerian economy and more importantly our business, as we
continue to invest in sustainable strategies that ensure the resilience of our business to varying economic
cycles. We are dedicated to the success of our customers and would continue to support our HNI clients
through their financial life cycle, including through our wealth management offerings and advisory
services. We would remain trusted partners to our corporate clients, supporting them through our
tailored offerings that optimize their financial outcomes. It is our commitment to continuously lead new
thinking and unlock new opportunities for the mutual prosperity of customers and our business.”

Also speaking on the results, the Managing Director/Chief Executive Officer, Mr. Nath Ude, said; “In
keeping to our pledge of supporting clients’ growth, Nova Merchant Bank continues to create novel financing structures to meet dynamic needs of our customers across key growth sectors. The strong
capitalization and liquidity ratios reinforce our capacity to underwrite quality transactions, in addition to
leveraging our expanded scope of offerings in delivering unique customer experience. I am pleased that
the loyalty of our clients does not only spur our business growth; it also reinforces our earnings growth
and sustainability. We achieved a 107.9% growth in profit before tax and recorded notable growth across
all balance sheet lines, reflecting the success of our strategy and the execution capacity of our team.”

“We continue to invest in new technologies, including our robust digital platform, to create exceptional
service experience for our customers. Nova Merchant Bank is a positive disruptor and would continue to
lead innovation and investments in technology and risk managements practices that revolutionize
financial services in Nigeria, as we remain focused on unlocking new opportunities for our esteemed
clients. We would sustainably deliver exceptional service to our customers, as we create superior value
for all stakeholders.

Note to the Editors:

About Nova Merchant Bank
NOVA Merchant Bank is an investment grade rated merchant bank in Nigeria that offers an integrated suite
of financial solutions covering Financial Intermediation, Wholesale and Investment Banking, Treasury
Services, Asset and Securities Management, Trade Services, Cash Management, Transaction and Digital
Banking.

Renowned for its innovative offerings and digital platforms, Nova leads the industry with new thinking,
creating new opportunities for its fast-growing clientele, as it continuously gain market share across all
segments of the industry,