Polaris Bank sustains N28.9bn profit growth

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Polaris Bank sustains N28.9bn profit growth
Polaris Bank Limited has released its full-year audited financial results for the year ended December 2020 posting a Profit Before Tax (PBT) of N28.9billion.

The results which show the bank’s second-year performance scorecard after two years of the operation, have further consolidated the bank’s position as focused on the path of profitability, growth, and value creation.

Details of the results show that its year 2020 performance reflects a 4% increase in Profit before Tax (PBT). The performance according to the financial statements is driven by the combination of the significant reduction in interest expense due to the bank’s pursuit of low interest-bearing deposits as well as lowering impairment charges on loans and other financial assets.

The bank recorded Return on Asset (ROA) and Return on Equity (ROE) of 2.4% and 29.4% respectively which favorably places the bank as a key player in the industry. Total Assets stood at N1.18trillion, a 3% growth on the previous year while Shareholders Funds grew by N14billion (17%), largely attributable to internally generated profits.

The lender increased its customer deposits by N56billion, predominantly low-cost deposits in spite of difficult economic and industry conditions, and increased its gross loan book by N38biilion reflecting the bank’s modest and prudent risk strategy to grow its Portfolio of Quality loans for optimal interest income generation.

Commenting, the Managing Director/Chief Executive Officer (MD/CEO) of Polaris Bank Limited, Mr. Innocent C. Ike said the lender has achieved significant milestones since its inception on September 21, 2018, when it started the journey and it has since grown to earn the confidence of the banking public, offering quality banking services at the cutting edge of technology.

“2020 was arguably the most challenging year that the world has faced in decades owing to the negative impact of COVID-19 on businesses and the economy. Yet, the current the result demonstrates the importance of the deployment of appropriate strategies, and effectively validates our recent investment in technology solutions and digitization of our products and processes,” he added.

He explained that the Bank’s subsisting three-year Corporate Transformation Plan has recently been reviewed in line with the changing operating environment and trend dynamism for sustainable value creation.

Digital transformation remains one of the potent strategies to strengthen the Bank’s balance sheet, control costs, and improve processes while providing clients with wider self-service offerings.

Financial  analysts explained that the remarkable achievements in 2020 reflected the bank’s new corporate strategy, management depth, and good Corporate Governance.

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