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Highlights:
- The price of Novatti Group’s shares zoomed up more than 51% on the ASX at around 11:40 AM AEDT today (7 November).
- The software and services firm announced the launch of the International Bank of Australia.
- The company has obtained a restricted banking licence by the Australian Prudential Regulation Authority.
- Novatti holds a 91% interest in the International Bank of Australia.
Fintech firm Novatti Group Limited (ASX:NOV), on Monday (7 November 2022), announced that its banking wing International Bank of Australia Pty Limited (IBOA) has been granted a restricted authorised deposit-taking institution (RADI) licence by Australia’s banking watchdog, the Australian Prudential Regulation Authority (APRA).
The banking business will be launched as the International Bank of Australia, the company shared.
Meanwhile, reacting positively to the update, the shares of the Novatti Group were quoted at AU$0.280 per share, up 51.351%, on the ASX at 11:40 AM AEDT on Monday.
Key highlights from the Novatti release today
- APRA has bestowed a RADI licence to the Novatti Group’s banking unit International Bank of Australia Pty Limited.
- A RADI licence is required for a corporate body to start its banking business in Australia.
- The licence is for a limited period and lets the holders conduct limited banking business.
- As per the release, Novatti was able to invest in the organisation because of its strong balance sheet. At the end of the September quarter, the company had AU$14.5 million as cash balance.
- The company shared a 98% rise in year-on-year quarter sales revenue in the September quarter.
Share price performance of Novatti Group
The shares of the fintech firm have gained 55.56% in the past one month, while the shares have gone up 33.33% in the last six months. On a year-to-date basis, the share price has come down by 10%, while in the last year, the stock has lost 33.33%. While looking at the broader picture, the company has managed to gain merely 7.69% in the last five years (as of 12:30 PM AEDT, 7 November 2022).
