AGUSTO & Co. Limited, a rating agency, has assigned a ‘BBB-’ rating to Nova Merchant Bank Limited.
The rating agency in a statement said: “The rating assigned to Nova Merchant Bank Limited reflects its strong capitalisation ratios, acceptable asset quality and strong liquidity profile. The rating takes into cognisance the Bank’s limited financial track record, though it is led by an experienced management team. The subdued macroeconomic environment and its attendant impact on the banking industry is also a rating concern.
“The Nigerian banking industry continues to display resilience despite various headwinds that militate against its performance. To protect margins and remain profitable, operators are leveraging technology to boost electronic banking services, thereby increasing inflow of low-cost liabilities and improving transactional banking income. Digitalization is also driving efficiency by lowering cost of service and extending banking services to a wider…
