Agusto & Co. affirms the ‘Bbb’ rating assigned to Nova Merchant Bank Limited, with a stable outlook

Agusto & Co. affirms the ‘Bbb’ rating assigned to Nova Merchant Bank Limited, with a stable outlook

Rating Release

Agusto & Co. affirms the ‘Bbb’ rating assigned to Nova Merchant Bank Limited, with a stable outlook.

 The rating expires on 31 December 2022

Agusto & Co. hereby affirms the “Bbb” rating of Nova Merchant Bank Limited (‘Nova MBL’ or ‘the Bank’). Nova MBL’s rating is upheld by its good capitalisation, good asset quality and good profitability. The rating is however constrained by the obligor and sectorial concentration in the loan book, high turnover in the senior management team, a concentrated deposit base which is tilted largely to more expensive funding sources (typical of merchant banks in Nigeria), slow economic recovery from the pandemic and changing regulations in the Nigerian banking industry.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.

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