INVESTOR PRESENTATION May 2020 www.novambl.com
DISCLAIMER 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. 2
KEY MEMBERS OF THE ROADSHOW TEAM Chinedu Ekeocha Anya Duroha Ayodeji Adigun Deputy Chief Chief Executive Officer Executive Director/ Operating Officer Chief Operating Officer Anwuli Femi-Pearse Ifeanyi Chukwuonye Akinwale Olawoye Group Treasurer Chief Financial Officer Chief Compliance Officer 3
Overview of NOVA www.novambl.com
NOVA MERCHANT BANK AT A GLANCE ₦ 19.5 Billion ₦ 63.8 Billion Total Equity TotalAssets ₦ 29.3 Billion ₦ 40.5 Billion Loans and Advances Customer Deposits Cost of Risk DataPro 0.3% Long term – A+ CapitalAdequacyRatio Expires March 2021 53.57% Liquidity Ratio Agusto Long term – Bbb 56% Expires June2021 Non-Performing Loans nil 5 The data presented reflects all parameters at the end of the Financial year ended 2019
OVERVIEW OF NOVA MERCHANT BANK LIMITED ❑ Nova Merchant Bank Limited is a CBN licensed merchant bank Ownership Structure in Nigeria with a focus on wholesale and investment banking ❑ The Bank is privately owned by foreign and local institutional Carbon investors Commodities Limited ❑ Nova Merchant Bank has Asset Management and Securities 24.753% 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 *Phillips ❑ Nova’s focus is on the Telecommunications Sector, Commodity & Oduoza Afriglobal 50.494% Investment Agricultural Business, Utility & Infrastructure, Fast Moving Holding Consumer Goods, Trade & Services,Financial Institutions and the Limited Oil & Gas Sector. 12.377% ❑ Nova has an ambitious vision to be Africa’s preferred financial Five Star Associates solutions provider by creating superior value in the markets we Limited serve *Phillips Oduoza 12.377% Direct- 43.514% ❑ We have made significant investments in a talented pool of Indirect- 6.98% 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 6
OUR DIVERSE SERVICE OFFERINGS NOVA MERCHANT BANK LIMITED Wholesale Investment Securities and Wealth Advisory Services Banking Banking Trading Management Asset Transaction Cash Trade Services Digital Banking Management Banking Management 7
KEY MILESTONES • • NOVA Merchant Bank was Achieved investment grade incorporated as a private credit ratings from Agusto & Co (Bbb) and Global Credit limited liability company in May Ratings Co (BBB-) 2017 • • Received SEC license to act as NOVA obtained CBN license to Fund/Portfolio Manager (Asset carry out merchant banking Management subsidiary) business in December 2017 2018 2019 2017 2020 • Formally openedto the public in 2018 • Appointed as a designated • Received our FX licence from the CBN collecting bank for Import, Excise and other duties by the which enabled us commence FX Nigeria CustomsService transactions • NOVA received dealing • Launched our Core Banking member license from NSE Application and all related third-party (Securities Tradingsubsidiary) interfaces • NOVA recorded a profit of N1.15billionin its first year of operations 8
DIVERSE BOARD OFDIRECTORS Nova has adoptedbest practice Corporate Governance principles which enables the Board to provide effectiveoversight within a frameworkof prudent and effective controls. Shams Butt Habiba Ammah Wakil Anya Duroha Phillips Oduoza Non-Executive Director Independent Director Chief Executive Officer Chairman Emmanuel Ijewere Malachy Nwaiwu Bolanle Onagoruwa Ayodeji Adigun Independent Director Independent Director Independent Director Executive Director 9
LEADERSHIP TEAM WITH EXTENSIVE EXPERIENCE Anya Duroha Ayodeji Adigun Chinedu Ekeocha Funke Okoya Chief Executive Officer Chief Operating Officer Deputy Chief Operating Officer Head, Corporate Bank Group 25+ years banking experience 30+ years banking & finance 27+ years experience in financial 22+ years experience in experience services financial services Ifeatu Onwuasoanya EberechukwuAgbogun Ifeanyi Chukwuonye Anwuli Femi-Pearse Chief Audit Executive Head, Capital Markets Chief Financial Officer Group Treasurer 22+ years experience in financial 15+ years professional experience in 17+ years experience in banking 16+ years banking experience services & capitalmarkets banking & consulting Obiaajum Chimbo Chidinma Ibeawuchi Akinwale Olawoye Livinus Ugwu Ag. Chief Risk Officer Head, Human Capital Management Chief Compliance Officer Chief Information Officer 18+ years experience in the 16+ years experience in Strategic Human 16+ years professional experience 20+ years experience in banking sector Resource Management banking & consulting financial services 10
KEY INVESTMENT HIGHLIGHTS Experienced Management team Strong CorporateGovernance 01 04 with a stellar record in Financial and RobustRisk Services ManagementFramework 02 05 Strong balancesheet and regulatory Investment GradeCredit Ratings from ratios SEC Approved rating agencies 03 06 Positive financial performance Growing listof top tier Corporate trajectory Clients 11
The Operating Environment www.novambl.com
OVERVIEW OF THE NIGERIAN ECONOMY • 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) MacroeconomicConditions • 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) • 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 RegulatoryActions 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 • 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 Fiscal Updates • 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 • 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 Reforms • 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 13
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