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How can Nigerian merchant banks drive profitability in H2?
As banks position for the second half of the year, earlier Fitch Ratings said profitability for Nigerian banks is expected to improve as business volumes pick up in the stronger growth environment. For Merchant Banks, Nigeria's Nova Merchant Bank declared a dividend of 800 million naira for 2020. Managing Director and CEO Nath Ude joins CNBC Africa to share his outlook for the rest of the year and how merchant banks can stay profitable.
Mon, 19 Jul 2021 12:01:49 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Impact of COVID-19 on merchant banks in Nigeria and the banking sector as a whole
- Strategies for driving growth and profitability in the current environment
- Focus on creating impact and bridging gaps in the economy to ensure long-term success
The COVID-19 pandemic has undoubtedly had a significant impact on the Nigerian economy, and the banking sector, including merchant banks, has not been immune to its effects. In a recent interview on CNBC Africa, Nath Ude, the Managing Director and CEO of Nova Merchant Bank, shared insights on how the pandemic has affected the merchant banking space and outlined strategies for driving growth and profitability in the second half of the year. The key theme that emerged from the interview was the importance of identifying and seizing opportunities in the midst of challenges. Despite the challenges posed by the pandemic, Ude highlighted the resilience of the banking sector and the potential for growth in key areas such as infrastructure development and manufacturing. He emphasized the need for merchant banks to focus on creating impact and bridging gaps in the economy, rather than just measuring success by financial metrics like profit before tax (PBT). Looking ahead, Ude discussed Nova Merchant Bank's financing plan and highlighted the importance of matching long-term funds with long-term investments to support the bank's growth strategy. As Nigerian merchant banks navigate the evolving business landscape, strategic planning and a focus on creating sustainable impact will be crucial for driving profitability and success in the coming months.
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