NOVA Bank’s transformation from a merchant bank to a full-service national commercial bank was a strategic shift that significantly boosted its financial performance in 2024 to the highest on record.
On July 4, 2024, the bank received the Central Bank of Nigeria’s approval of its final licence to commence operations as a commercial bank.
The transition enabled NOVA to move beyond wholesale banking and tap into retail and SME markets, which are key growth drivers in Nigeria’s financial sector.
As a commercial bank, NOVA now offers retail banking services (e.g., savings, loans, and digital wallets), as well as SME and microfinance products and corporate solutions tailored to diverse industries.
This broadened client base translated into higher transaction volumes, increased deposits, and greater fee-based income.
In its recently released audited financial statements for the full year ended December 31, 2024, the Group reported a profit before tax (PBT) of N11.43 billion, a 211 percent increase from the N3.67 billion reported in FY 2023.
At the bank level, PBT rose by 215 percent to N11.39 billion, up from N3.62 billion the prior year. This strong earnings trajectory is further reflected in the group’s profit after tax, which surged by 172 percent to N8.23 billion, compared to N3.03 billion in 2023.
The bank itself recorded a 169 percent rise in net profit, closing the year at N8.03 billion from N2.98 billion in the preceding year.
Commenting on the results, Chinwe lloghalu, the acting managing director/CEO, said in a statement, “These results affirm our commitment to sustainable growth and delivering long-term value to all stakeholders.
“We have consistently executed on our strategy to expand responsibly, innovate digitally, and maintain strong asset quality. As we have transitioned into a commercial bank, we are confident in our ability to scale impact across both retail and corporate segments.”
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Here’s how the move boosted the bank’s earnings
Diversified revenue streams
With its expanded license, NOVA developed new income-generating services, including Retail lending, ATM and card services, digital channels and mobile banking. These new offerings are evident in the bank’s financial results, as Net interest income tripled by 233 percent to N6.02 billion in 2024, compared to N1.81 billion in the prior year. Similarly, net fee and commission income rose by 89 percent, reaching N3.59 billion, up from N1.90 billion.
Improved balance sheet growth
Total assets stood at N373.5 billion, a year-on-year increase of 14 percent from N327.4 billion in 2023. This asset growth was driven by increased customer activity, strategic investments, and effective balance sheet management.
Investment securities rose by 11 percent, increasing from N59.6 billion in 2023 to N66.06 billion in 2024, reflecting the bank’s strategic asset allocation and strengthened investment portfolio.
In a display of strong asset quality, impairment charges on credit losses decreased by 72 percent, from N417.6 million in 2023 to N118.1 million in 2024.
Shareholders’ equity increased by 31 percent to N40.8 billion, boosting the bank’s capital adequacy and lending capacity.
Share capital increased from N16 billion to N26 billion.
Strategic physical expansion
Iloghalu said, “We are on course to establish new branches in select high-impact locations this year, in line with our physical strategy. These branches are not just about physical infrastructure and engagement; they are designed to be hubs of innovation and customer service.”
In the statement, she added that building on its transformation from a merchant bank into a full-service commercial bank, NOVA has deepened its market penetration through a strategic blend of digital scale and physical presence.
The bank recently commissioned a new physical branch in Ikeja, Lagos, reaffirming its commitment to delivering technology-enabled financial services with a human touch.
“The bank’s performance cements its position as one of Nigeria’s most dynamic financial institutions, combining growth, governance, and innovation to serve as a strong partner for businesses and individuals across the country,” it said.
