NOVA Commercial Bank Shareholders Ready to Fund N160bn New Equity Capital
NOVA Commercial Bank shareholders are ready to step up and recapitalize the lender to meet higher capital requirements set by the Central Bank of Nigeria (CBN), according to the Managing Director/CEO, Adebowale Oyedeji.
“We have very solid foreign investors who have committed to raising the money to meet the CBN’s capital requirements,” Oyedeji told MoneyCentral at the opening of NOVA’s first commercial banking branch at 18, Kofo Abayomi Street, Victoria Island.
NOVA plans to raise additional equity capital of over N160 billion through a combination of rights issue, private placement, and an initial public offer (IPO) within the two-year timeframe (2024-2026) to meet the new capital requirements for the commercial banking license.
NOVA shareholders’ equity strengthened to N32.3 billion in the first quarter of 2024 (2023: N29.8 billion), following the capital injection of N1.4 billion through a rights issue as well as the impact of earnings accretion.
The bank has grown steadily over the years, registering a five-year compound annual growth rate CAGR of 67.3% in total assets to N327.4 billion ($364.1 million) in the financial year ended 31 December 2023.
NOVA’s risk position is underpinned by sound asset quality metrics and a cautious lending approach. Gross loans increased by a moderate 7.4% to N103.9 billion ($115.5 million) as of 31 December 2023 (2022: N 96.7 billion).
Non-performing loans (NPL) and credit loss ratios remained below 0.5%, consistent with the 2022 levels, despite the challenging macroeconomic environment.
NOVA Commercial Bank Shareholders include Carbon Commodities DMCC, Five Star Associate Limited, and Afriglobal Investment Holding.
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