INVESTOR PRESENTATION May 2020 www.novambl.com DISCLAIMER This - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION May 2020

DISCLAIMER

2

This presentation contains or incorporates by reference ‘forward-looking statements’ regarding the belief or current expectations of Nova Merchant Bank Limited (“Nova" or the "Bank" or the "Company"), the Directors and other members of its senior management about the Group’s businesses and the transactions described in this presentation. Generally, words such as ‘‘could’’, ‘‘will’’, ‘‘expect’’, ‘‘intend’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘plan’’, ‘‘seek’’ or similar expressions identify forward- looking statements. These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other important factors, many of which are outside the control of the Company and are difficult to predict, that may cause actual results to differ materially from any future results or developments expressed or implied from the forward-looking statements. Such risks and uncertainties include, but are not limited to, regulatory developments, competitive conditions, technological developments and general economic conditions. The Bank assumes no responsibility to update any of the forward looking statements contained in this presentation. Any forward-looking statement contained in this presentation based on past or current trends and/or activities of Nova should not be taken as a representation that such trends or activities will continue in the future. No statement in this presentation is intended to be a profit forecast or to imply that the earnings of the Company for the current year or future years will necessarily match or exceed the historical or published earnings of the Company. Each forward-looking statement speaks only as of the date of the particular statement. Nova expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Nova’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Anya Duroha Chief Executive Officer Ayodeji Adigun Executive Director/ Chief Operating Officer Ifeanyi Chukwuonye Chief Financial Officer Akinwale Olawoye Chief Compliance Officer Anwuli Femi-Pearse Group Treasurer 3

KEY MEMBERS OF THE ROADSHOW TEAM

Chinedu Ekeocha Deputy Chief Operating Officer

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Overview of NOVA

₦63.8 Billion TotalAssets DataPro Long term – A+

Expires March 2021

Agusto Long term – Bbb

Expires June2021

₦19.5 Billion Total Equity ₦40.5 Billion Customer Deposits ₦29.3 Billion Loans and Advances Cost of Risk 0.3% CapitalAdequacyRatio 53.57% Liquidity Ratio 56% Non-Performing Loans nil

NOVA MERCHANT BANK AT A GLANCE

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The data presented reflects all parameters at the end of the Financial year ended 2019

❑ Nova Merchant Bank Limited is a CBN licensed merchant bank in Nigeria with a focus on wholesale and investment banking ❑ The Bank is privately owned by foreign and local institutional investors ❑ Nova Merchant Bank has Asset Management and Securities Trading subsidiaries. ❑ The Bank offers a portfolio of products and services across Corporate Banking, Investment Banking, Advisory Services, Securities, Wealth & Asset Management to private individuals in addition to private and public sectorcommercialclients ❑ Nova’s focus is on the Telecommunications Sector, Commodity & Agricultural Business, Utility & Infrastructure, Fast Moving Consumer Goods, Trade & Services,Financial Institutions and the Oil & Gas Sector. ❑ Nova has an ambitious vision to be Africa’s preferred financial solutions provider by creating superior value in the markets we serve ❑ We have made significant investments in a talented pool of professionals as well as in processes and technology to drive the next wave of banking revolution in financial services and create sustainable value for all ourstakeholders

Ownership Structure

*Phillips Oduoza 50.494%

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Five Star Associates Limited 12.377% Afriglobal Investment Holding Limited 12.377% Carbon Commodities Limited 24.753%

*Phillips Oduoza Direct- 43.514% Indirect- 6.98%

OVERVIEW OF NOVA MERCHANT BANK LIMITED

Wealth Management

NOVA MERCHANT BANK LIMITED

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Wholesale Banking Investment Banking Advisory Services Securities and Trading Asset Management Trade Services Transaction Banking Cash Management Digital Banking

OUR DIVERSE SERVICE OFFERINGS

• NOVA Merchant Bank was

incorporated as a private limited liability company in May 2017

• NOVA obtained CBN license to

carry out merchant banking business in December 2017

2017 2018 2019

• Formally openedto the public in 2018
• Received our FX licence from the CBN

which enabled us commence FX transactions

• Launched our Core Banking

Application and all related third-party interfaces

• NOVA recorded a profit of N1.15billionin

its first year of operations

• Achieved investment grade

credit ratings from Agusto & Co (Bbb) and Global Credit Ratings Co (BBB-)

• Received SEC license to act as

Fund/Portfolio Manager (Asset Management subsidiary)

2020

• Appointed as a designated

collecting bank for Import, Excise and other duties by the Nigeria CustomsService

• NOVA received dealing

member license from NSE (Securities Tradingsubsidiary)

KEY MILESTONES

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Nova has adoptedbest practice Corporate Governance principles which enables the Board to provide effectiveoversight within a frameworkof prudent and effective controls.

Shams Butt Non-Executive Director Bolanle Onagoruwa Independent Director Habiba Ammah Wakil Independent Director Malachy Nwaiwu Independent Director Emmanuel Ijewere Independent Director Phillips Oduoza Chairman Anya Duroha Chief Executive Officer Ayodeji Adigun Executive Director 9

DIVERSE BOARD OFDIRECTORS

Anya Duroha

Chief Executive Officer 25+ years banking experience

Anwuli Femi-Pearse

Group Treasurer 16+ years banking experience

Obiaajum Chimbo

• Ag. Chief Risk Officer

18+ years experience in the banking sector

Ifeatu Onwuasoanya

Chief Audit Executive 22+ years experience in financial services

Chidinma Ibeawuchi

Head, Human Capital Management 16+ years experience in Strategic Human Resource Management

EberechukwuAgbogun

Head, Capital Markets & capitalmarkets

Akinwale Olawoye

Chief Compliance Officer 16+ years professional experience banking & consulting

Livinus Ugwu

Chief Information Officer 20+ years experience in financial services

Ayodeji Adigun

Chief Operating Officer 30+ years banking & finance experience

Funke Okoya

Head, Corporate Bank Group 22+ years experience in financial services

Chinedu Ekeocha

Deputy Chief Operating Officer 27+ years experience in financial services

Ifeanyi Chukwuonye

Chief Financial Officer 15+ years professional experience in 17+ years experience in banking banking & consulting

LEADERSHIP TEAM WITH EXTENSIVE EXPERIENCE

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01 02 03

Experienced Management team with a stellar record in Financial Services Strong balancesheet and regulatory ratios Positive financial performance trajectory Strong CorporateGovernance and RobustRisk ManagementFramework Growing listof top tier Corporate Clients Investment GradeCredit Ratings from SEC Approved rating agencies

04

11

05 06

KEY INVESTMENT HIGHLIGHTS

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The Operating Environment

• President Muhammadu Buhari signed into law an Executive Order for the implementation of

Financial Autonomy of State Legislature and State Judiciary

• The FGN has agreed to delay the new tariff regime in the Power sector
• By the VAT Modification Order, the Minister of Finance, Budget and National Planning expanded

the list of goods and services designated as being exempt from Value Added Tax

• On May 14, 2020, the Honourable Minister of Finance met with the National Assembly to present a

second revision to the N10.59tn 2020 budget passed by the senate in December 2019

• The $57 oil price benchmark is to be reduced to $27; crude oil production from 2.18mbd to 1.9mbpd and

the exchange rate revised to N360/USD; Revenue estimated to be 34% lower - N5.548trillion

• In April, the Senate approved the conversion of N850bn External borrowing to domestic borrowing
• Monetary Policy Committee cuts policy rate by 100bps to 12.5% in May; maintains all other parameters.
• In response to the Covid-19 pandemic, the CBN announced policy responses including extension of

moratoriums on loans; interest rate reduction; creation of N50bn fund; credit support for the health sector as well as regulatory forbearance

• Also in March, CBN adjusted the price of the naira at the official window to N360/USD from N307/USD
• In Q1 2020, the economy recorded real growth of 1.87% compared to 2.55% recorded in Q4 2019

and 2.10% in Q1 2019.

• Global oil prices have been suppressed since the Coronavirus outbreak ($35.66 at May 26, 2020)
• Inflation rate has risen to 12.34% in April 2020 from 12.26% in March 2020
• External reserves declined to as low as $34.3bn in April 2020 ($35.70bn at May 21, 2020)

Fiscal Updates RegulatoryActions MacroeconomicConditions Reforms

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OVERVIEW OF THE NIGERIAN ECONOMY

Private sector credit – good traction Inflation – double digits & trendingupwards

Inflation rate has been trending upwards – Headline Inflation 12.34% in April 2020

2.47% 1.64% 1.85% 1.55% 2.10% 2.12% 2.26% 2.28%

GDP Growth– stable butslow

Q1 2020 growth is 1.87% compared with 2.10% in Q1 2019

2.55% 1.87% Q1 19 Q2 19 Q3 19 Non-Oil Se c tor Gr ow th Q4 19 Q1 20 GDP Gr owth

Reserves – under pressure from high $ demand

IMF’s Rapid Financing Instrument of $3.4bn received in May has propped reserves up slightly

Jan 20 May 20 Feb 20 Mar 20 Apr 20 Reserves ($'bn) 25.85 26.41 26.69 26.57 26.69 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Credit to the Private Se ctor (N'trn) Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 Core Food Headline

Oil Prices- between $30/b - $35/b

Oil prices fell below $57 benchmark but has rebounded in May and is above the $30 mark

Jan 20 Feb 20 Mar 20 Apr 20 May 20 Oil prices per barrel (US $)

USD/NGN FX Rate– volatile

The naira was devalued at the Official rate to N361 and at the I & E Window to N380 in March 2020

May 20 Jan 20 Feb 20

Of f icial Rate

Mar 20 Apr 20

Par r ale l M ar k e t I & E Win d o w

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THE MACROECONOMIC ENVIRONMENT

38.00 36.29 35.16 33.52 35.16 9.33% 9.35% 9.43% 9.73% 9.98% 14.67% 14.85% 14.90% 14.98% 15.03% 11.98% 12.13% 12.20% 12.26% 12.34% 59.41 49.67 26.42 26.48 35.66 306.5 360 360 360 360 361 365 392 435 450 363.67 364.79 372.32 387.52 385.94

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Risk Management Framework

❑ Nova adopts a strong selection process to ensure a healthy asset book ❑ The Bank has avoided any stressed cases by using Portfolio Analytics and Early Warning Signals in conjunction with proactive problem solving ❑ Overall portfolio is well distributed with significant deployment in focused knowledge sectors achieved by leveraging on sectoral expertise and Risk Managers. ❑ Our Risk Management System provides early identification of potential problem accounts ❑ We believe adherence to the highest levels of Corporate Governance is critical to building long-term shareholder value. ❑ Nova has adopted best practice Corporate Governance principles which enables the Board to provide effective

• versight within a framework of prudent and effective

controls and has fully complied with the requirements of Code of Corporate Governance issued by CBN. ❑ The Board of Directors has overall responsibility for the establishment and

• versight
• f

the Bank’s risk management framework via its committees (Board Audit Committee and Board Credit & Risk Management Committee) 16

CORPORATE GOVERNANCE RISK MANAGEMENT

CORPORATE GOVERNANCE AND RISK MANAGEMENT

BOARD OFDIRECTORS

Executive Management Committee Head of Coreand Supports Units Core and SupportUnits Board Credit & Risk Management Committee /Board Audit Committee Enterprise-wide RiskManagement Risk Management &Compliance Department Internal External Audit Audit First Line of Defence Second Lineof Defence Third Line of Defence

Nova has adopted a company wide strategy to successfully implement effective risk management. There are multiple points of control or safeguards consistently applied at various levels throughout the Bank. The first line is the risk ownership, the second line are the risk control departments and the third line are the independent assurances. 17

THE THREE LINES OF DEFENCE

Board Credit & Risk Committee is chaired by the former Head of Risk, DeutscheBank Robust credit origination and review process. Strict rules

• n our obligor risk rating which are meticulously adhered

to The Bank has a moderate risk appetite, with focus on both large corporates and commercial clients in the real sector Having sustained zero Non-Performing Loan (NPL) for the last 2 consecutive years, Nova has proven the credibility and resilience of its risk models We have corporates clients with strong governance sustainable business model, compelling fundamentals and credible management/promoters Quarterly Scenario Analysis & Stress testing. Implemented a 20% buffer between the regulatory and internal FX limits We adopted an overall risk appetite level of moderate risk.

RISK APPETITE AND METHODS FOR MANAGING RISKS

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Zero NPL over the last two (2) years of RiskAssets creation. The Bank continues to show resilience on allAsset Quality parameters Non PerformingLoans

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Past DueObligations Nil record formissedrepayments / past due obligations Corporate Exposure Well-rated corporate exposure with over 46.21% rated as InvestmentGradeA* or above (*Based on Internal rating modelsmappedto external ratings) Additional 43.95% in Standard Grade BB or above with 50% cash collateral in samecurrency. Asset QualityParameters

CREDIT RISK AND ASSET QUALITY

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Financial Performance

*2017(8mth) N’mn 2018 FY N’mn 2019 FY N’mn Gross Earnings 1,244 2,755 5,819 Profit Before Tax (PBT) 420 960 1,516 Profit After Tax (PAT) 510 1,150 1,650 Interest Income 1,224 1,877 4,529 Non-Interest Income . 879 1,290 Deposits

• 6,494

40,512 Loans to customers

• 2,428

29,286 *2017(8mth) N’mn 2018 FY N’mn 2019 FY N’mn Return on Equity (ROE) 3.1% 6.5% 8.4% Capital Adequacy Ratio N/A 228.71% 53.57% Cost to Income Ratio 64% 60% 55% Loan to Deposit Ratio

• 37%

72% Cost of Risk

• 0.05%

0.3% Liquidity Ratio

• 266%

56% Earnings, Profit, Capital Performance/Regulatory Ratios

KEY FINANCIAL HIGHLIGHTS

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*2017 numbers are forthe 8month period ended 31st December 2017;All figures are representative ofthe Company- Nova Merchant Bank Limited

Gross Earnings (N’mn) Earnings Mix (N’mn) Profit After Tax(N’mn)

510 1,150 1.650 2017 2018 2019 1,244 2,757 5,820 2017 2018 2019 1,224 1,877 4,529 879 1,290 2017 Interest Income 2018 2019 Non Interest Income

EARNINGS ANDPROFITABILITY

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*2017 numbers are forthe 8month period ended 31st December 2017;All figures are representative ofthe Company- Nova Merchant Bank Limited

• Gross earnings grew by 121% and 111% in 2018 and 2019 respectively, driven largely by increase in interest income and

supported by increase in non-interest income from increasing transaction volumes for the bank.

• Profit After Tax has maintained an upward trajectory with a CAGR of 47.9%. As gross earnings are increasing and cost to

income ratio falls, the improved operating efficiency has contributed to sustainable growth in PAT.

Asset Composition – FY 2019

Other Assets 14% Balances with banks 8% Financial Assets held for trading 1% Loans to banks and

• ther

Financial Institutions 11% Loans & Advances to customers 46% Investment Securities 20% Other Assets 18% Balances with banks 5% Financial Assets held for trading 15% Loans to banks and

• ther

Financial Institutions 16% Loans and Advances to customers 8% Investment Securities

37%

Asset Composition – FY 2018

ASSET COMPOSITION

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All figures are representative ofthe Company- Nova Merchant Bank Limited

• Total Assets grew by 156% in 2019 from N24.9billion to N63.8billion driven largely by growth in loan to customers from

N2.4billion to N29.3billion with most loans advanced to top rated Corporates

Loans and Advances by Sector (FY 2019 vs Q1 2020) Loan Portfolio by Product (FY 2019 vs Q1 2020) Agriculture General Commerce Health Manufacturing Oil - Downstream 27.95% 9.22% 0.07% 12.64% 25.77% Oil – Midstream Transportation 7.42% 16.93% Others

• 0.37%

19.24% 3.58% 37.93% 22.92% 7.15% 7.88% 0.93% Overdraft Loans Short term Loans Medium term Loans 6.75% 67.48% Long term Loans 25.77% 7.52% 53.57% 22.92%

• 15.99%

Priority Sectors for Loan Growth

Telecommunications Cement & Building Materials FMCGs Manufacturing Agriculture Healthcare

• Total Loans to customers declined to N26.6billion in Q1 2020 from N29.3billion in FY 2019
• Our loan book focus is on quality risk assets and all our existing loans are Performing Loans

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All figures are representative of the Company - Nova Merchant Bank Limited

LOAN BOOK AND LOANPORTFOLIO

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Covid-19 Pandemic: Business Resilience

MITIGATING THE IMPACT OF MACRO HEADWINDS

▪ Explore opportunities arising from the Covid-19 crisis which the Bank can benefit from e.g. healthcare, telecoms, logistics sectors

Stress Testing Business Continuity Stakeholder Management Cost Management Opportunity Targeting

▪ Frequent modelling of exposures and stress tests to enable the Bank constantly dimension the risks associated with our portfolio given the fluid and dynamic environment we now operate in ▪ Activation of business continuity measures to safeguard the continued provision of services to customers ▪ Frequent engagement with customers and partners to generate business and secure funding arrangements ▪ Implementation of cost containment strategies to limit OPEX growth and maximise profitability

Employee Protection

▪ Adopted measures to safeguard the welfare and health of our staff thereby reducing the risk of disruptions to our business

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RESILIENT BUSINESS MODEL

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Dedication to digital banking channels with no brick and mortar branches ensures the Bank can operate as normal and offer its full suite of products and services to customers unhindered Reduces the risk of the Bank carrying

• verheads which could constrain

profitability at this time. Low cost base allows us to offer competitive rates to win businesses and transactions Thorough Due diligence procedures to ensure Clients have sufficient financial strength, resilience and experience in weathering macro-economic storms thereby preventing the onset of NPLs Short TAT shows we can meet customer requirements quicker and take advantage of this pandemic to build brand loyalty with existing clients

Digital Banking Lean Operating Philosophy Focus on low risk corporate customers Operational Efficiency

KEY RATIOS AND FUNDING BASE UNAFFECTED

28 The Bank has the capacity to weather the effects of the current challenges posed by the Covid -19 pandemic as key ratios are unaffected by current macro economic headwinds Funding base remains strong as our deposits continue to grow in spite of current challenges Strong relationship with correspondent banks ensures lines remain available for use by the Bank unhindered

Deposit Trend (N’bn)

Nova’s deposits have grown 58% from N40.5bn in Dec 2019 to N64.2bn in March 2020

Liquidity Ratio (%)

Liquidity ratio is above Nova’s internal limit of 35% and the regulatory limit of 30%

40.5 48.4 60.5 64.2 31-Dec-19 31-Jan-20 28-Feb-20 31-Mar-20 62.1% 84.3% 47.5% 56.5%

35%

30% 31-Dec-19 31-Jan-20 28-Feb-20 31-Mar-20 54.32% 60.3% 59.2% 50.68%

15% 10%

31-Dec-19 31-Jan-20 28-Feb-20 31-Mar-20

Capital Adequacy Ratio (%)

CAR is above Nova’s internal limit of 15% and the regulatory limit of 10%

ASSET QUALITY, LOW RISK CUSTOMERS PROTECTS LOAN PORTFOLIO

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Obligor Risk Ratings Collateral Breakdown

Negative Pledge 2.54% Domicilation of Proceeds 0.94% All Assets Debenture 36.76% Cash 20.12% Treasury Bills 0.84% Corporate/Cross Guarantees 38.79% Standard Grade 43.95% Investment Grade 56.05%

Loans Advanced (By Business Type) Loans Advanced (By Sector)

Agriculture 27.95% General Commerce 9.22% Health 0.07% Manufacturing 12.64% Oil- Downstream 25.77% Oil-Midstream 7.42% Transportation 16.93% Corporates 99% SMEs 0.07% Retail/Consumer 0.93% The data presented reflects all parameters at the end of the Financial year ended 2019

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Outlook

Generate Momentum Scalethe Business Push for Merchant Banking Clear Leader Implementation Phases Our aim is to be the clear leaderin our sub-sectorby 2023

PRIORITIES

Growing our wholesale banking business by winning newclients Increasing market share ofexisting clients Deployinnovative and bespoke solutions to our customers Focus on our ecosystem strategyto trap key suppliers and distributors of our customers Increasing our industry market share of our treasury operations Increase the volume of our trade transactions Successfultake off of our capital market subsidiaries

OUTLOOK

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Transaction Summary

Issuer NOVAMBL INVESTMENTS SPV PLC Sponsor NOVA MERCHANT BANK LIMITED Programme Amount N50,000,000,000 (Fifty Billion Naira) Sponsor Ratings Data Pro (A+); Agusto: (Bbb) Issue Ratings Data Pro (A); Agusto:(Bbb-) Status of Bonds Subordinated Unsecured Indicative Size Up to N10,000,000,000 Fixed Rate Bond Coupon Rate [●]% per annum; payable on a semi-annual basis Tenor 7 years Maturity Date [●] 2027 Call Option Callable after 5years Currency The Bonds shall be denominated in Nigerian Naira (N) Offer Mode Offer for Subscription via Book Build Units of Sale Minimum of 10,000 units and multiple of 1,000thereafter Use of Proceeds To purchase Notes issued by the Sponsor Listing FMDQ and / or the NSE Governing Law Nigerian Law

TRANSACTION SUMMARY

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Questions

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ANY QUESTIONS

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Appendix

STATEMENT OF COMPREHENSIVE INCOME BANK BANK GROUP BANK 2017* 2018 2019 2019 N'000 N'000 N'000 N'000 Interest Income 1,224,514 1,876,519 4,536,246 4,529,392 Interest expense (60,878) (373,347) (2,329,665) (2,343,268) Net Interest Income 1,163,636 1,503,172 2,206,581 2,186,124 Impairmentchangesforcreditlosses

• (1,148)

(78,766) (78,766) Fees and commission income

• 29,068

309,611 267,072 Net Gains on financial instruments held fortrading

• 545,475

765,117 765,117 Net foreign exchange gain

• 302,419

246,116 246,116 Other Income

• 1,987

11,281 11,281 Operating expense (743,396) (1,420,382) (1,948,064) (1,880,059) Profit before Tax 420,240 960,591 1,511,876 1,516,885 Income tax 90,336 190,394 133,832 133,832 Profit for the year 510,576 1,150,985 1,645,708 1,650,717 Items that may be substantiallyreclassified to the income statement: Net changes in the fair value of financial instruments FVOCI

• (50,131)

297,664 297,664 Other Comprehensive loss,netof related tax effects:

• (50,131)

297,664 297,664 Total comprehensive income for theyear 510,576 1,100,854 1,943,372 1,948,381

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*2017 numbers are forthe 8month period ended 31stDecember2017; The Group consists ofNova Merchant Bank & its Asset ManagementSubsidiary

STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF FINANCIAL POSITION BANK BANK GROUP BANK 2017* 2018 2019 2019 N'000 N'000 N'000 N'000 ASSETS Balance withBank

• 1,195,794

4,861,169 4,861,169 Financial assets held fortrading

• 3,828,375

722,877 722,877 Loans to bank and other financial institutions

• 3,883,786

7,035,382 7,035,382 Loans and advances to customers 23,163 2,427,818 29,285,504 29,285,504 Investment Securities

• 9,222,403

12,827,857 12,826,295 Investment insubsidiaries

• 150,000

Derivative financial assets

• 20,753

1,460,523 1,460,523 Pledged assets

• 1,192,312

2,497,380 2,497,380 Property and equipment 313,684 1,213,250 1,093,921 1,092,576 Right-of-use asset 280,871 280,871 Intangible assets 3,066 727,568 805,796 777,071 Other assets 17,557,340 979,583 2,491,126 2,372,154 Deferred taxAsset 94,497 204,497 443,497 443,497 Total Assets 17,991,750 24,896,139 63,805,903 63,805,299 LIABILITIES Due to customers

• 6,494,473

40,512,882 40,512,940 Derivative financial liabilities

• 87,319

1,446,598 1,446,598 Lease liability

• 82,825

82,825 Current tax liabilities 4,161 9,606 15,264 15,264 Other liabilities 1,477,013 783,310 2,193,532 2,187,861 Total Liabilities 1,481,174 7,374,708 44,251,101 44,245,488 EQUITY Share Capital 16,000,000 16,000,000 16,000,000 16,000,000 Statutory reserve 153,173 498,468 993,682 993,682 Retained Earnings 357,403 1,115,666 1,807,090 1,812,099 Fair value reserve

• (50,131)

247,533 247,533 Regulatory Risk Reserve

• 47,428

506,417 506,417 Total Equity 16,510,576 17,611,431 19,554,802 19,559,811 Total Equity & Liabilities 17,991,750 24,986,139 63,805,903 63,805,299

38

*2017 numbers are forthe 8month period ended 31stDecember2017; The Group consists ofNova Merchant Bank & its Asset ManagementSubsidiary

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CASH FLOWS

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*2017 numbers are forthe 8month period ended 31stDecember2017; The Group consists ofNova Merchant Bank & its Asset ManagementSubsidiary STATEMENT OF CASH FLOWS BANK BANK GROUP BANK 2017* 2018 2019 2019 N'000 N'000 N'000 N'000

Cashflows from Operating Activities Profit Before Income Tax 420,240 960,591 1,511,876 1,516,885 Adjustment for Non-cashitems: Depreciation charge on Property and equipment 10,932 136,979 258,065 257,794 Depreciation charge on right of use asset

• 15,843

15,843 Amortisation of intangible assets 186 8,314 20,884 20,884 Gain on disposal of Property plant and equipment

• (68)

(68) Net interest Income (1,163,636) (1,503,173) (2,206,581) (2,186,124) Impairment charge on loans and advances

• 980

30,050 30,050 Impairment charge on loans tobanks

• 2

78 78 Mandatory reserve deposits withthe Central Bank of Nigeria (732,278) (396,307) (369,853) (344,658) (1,286,185) (1,286,185) Loans and advances to customers (23,163) (2,405,635) (26,887,737) (26,887,737) Financial Instruments-FVPL

• (3,828,375)

3,105,497 3,105,497 Derivative financial instruments

• 66,566

(80,491) (80,491) Other Assets (17,557,340) 16,577,754 (1,736,874) (1,617,902) Due toCustomers 9,520 6,480,177 33,533,440 33,533,499 Other liabilities 712,911 1,421,669 1,415,998 Cash from/(used in)operations (17,570,983) 17,603,398 8,069,319 8,182,679 Interest Received 1,224,514 1,876,520 4,536,246 4,529,392 Interest paid (359,051) (1,844,696) (1,858,299) Income Tax Paid

• (4,161)

(9,511) (9,511) Net Cash Used in/from Operating Activities (16,346,469) 19,116,706 10,751,358 10,844,261 Cashflows from InvestingActivities Pledged Assets

• (1,192,312)

(1,305,067) (1,305,067) Investment in securities-FVOCI

• (9,272,534)

(3,307,789) (3,306,227) Investment in subsidiary

• (150,000)

Purchase of property, plant and equipment (324,010) (1,036,545) (155,962) (154,346) Proceeds from sale of property and equipment 17,293 17,293 Purchase of Intangible aasets (3,251) (732,816) (99,110) (70,385) Net Cash Provided by Investing Activities (327,261) (12,234,207) (4,850,635) (4,968,732) Cashflows from Financing Activities Shareholder Loan 1,406,614

• Repayment of borrow ing
• 1,406,614
• Proceeds from issue of share capital

16,000,000

• Net Cash Provided by Financing Activities

17,406,614 1,406,614

• Balances w ithbanks
• 1,195,794

3,574,984 3,574,984 Placement w ith banks

• 3,883,786

7,035,462 7,035,462 Cash & Cash Equivalent at End of Year

• 5,079,580

10,610,446 10,610,446

NOVA Merchant Bank Limited 23, Kofo Abayomi Street Victoria Island, Lagos. Nigeria. Email: info@novambl.com Telephone: +234 1 280 4000

www.novambl.com NEW THINKING. NEW OPPORTUNITIES.