Nigeria’s Newest Commercial Bank Announces Profit Surge Following Transition

• NOVA Bank Group, Nigeria’s newest commercial bank, has announced a surge in its profit after tax
• In 2024, the bank received a licence from the Central Bank of Nigeria to commence full national commercial operations
• The licence enabled NOVA Bank to enter the retail and SME markets, where it has recorded significant success

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

NOVA Bank’s transformation from a merchant bank to a full-service national commercial bank significantly boosted its financial performance in 2024.

According to its latest financial results, NOVA Bank's profit and net interest income rose to record levels by the end of December 2024.

Breakdown of Nova Bank's financial performance

This strategic shift contributed to remarkable year-on-year growth across all key financial indicators.

For example, its group profit after tax (PAT) nearly tripled, rising from N3.03 billion in 2023 to N8.23 billion in 2024.

At the bank level, PAT surged from N2.98 billion to N8.03 billion.

While total assets increased by 14% to N373.5 billion in 2024 from N327.4 billion in the previous year, reflecting improved balance sheet strength and market confidence.

Net interest income grew more than threefold to N6.02 billion, up from N1.81 billion in 2023, underscoring the bank’s expanding revenue base under its new operating model.

Share capital also climbed significantly, from N16 billion in 2023 to N26 billion in 2024.

Nova Bank transition to commercial banking

Legit.ng reported that the bank received final approval from the Central Bank of Nigeria on July 4, 2024, to commence operations as a commercial bank.

The regulatory milestone enabled NOVA to expand beyond wholesale banking into the retail and SME segments, two key growth areas in Nigeria’s financial services sector.

Speaking on the commencement of commercial banking operations, Mr. Phillips Oduoza, Chairman and Founder of NOVA Bank, emphasised the Bank’s unwavering commitment to customer focus and delivering exceptional service while introducing the innovative “PHYGITAL” model, a trademark of NOVA.

He stated:

“We are pleased to continue our tradition of excellence established as a merchant bank and further extend the banking experience to the retail end of the market. As we expand our services, we remain dedicated to delivering an unparalleled banking experience that seamlessly integrates the physical and digital realms.

"Our trademarked PHYGITAL experience combines a select number of strategically located physical branches with high-tech, seamless digital banking capabilities, ensuring that our customers receive the best of both worlds.

"This approach allows us to provide personalized, in-person service where it is most needed, while also offering the convenience and efficiency of cutting-edge digital solutions.”

Another commercial bank to begin operation

Legit.ng earlier reported that Abbey Mortgage Bank has announced plans to raise at least N100 billion through a mix of financial instruments as part of a strategic push to transition from a primary mortgage bank to a regional commercial bank.

At the bank’s Board of Directors during its 33rd Annual General Meeting held on Wednesday, May 28, shareholders agreed that the capital raise will support the bank’s transition and align it with the CBN’s new minimum capital requirement of N50 billion for regional commercial banks.

Source: Legit.ng