Polaris Bank Limited says its customer deposits increased by N56billion inspite of the economic turmoil in 2020 occasioned by the COVID-19 pandemic.
It 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
It recorded Profit Before Tax of N28.9billion last year
The results which show the bank’s second-year performance scorecard after two years of 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 per cent Year on Year (YoY) 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 2.4per cent and 29.4per cent respectively which favourably place the Bank as a key player in the industry.
The bank’s total assets stood at N1.18trillion, three per cent growth on the previous year while Shareholders Funds grew by N14billion (17per cent), largely attributable to internally generated profits.
Commenting on the bank’s performance, the Managing Director/Chief Executive Officer (MD/CEO) of Polaris Bank Limited, Mr Innocent C. Ike who took over in the course of the year from Mr. (now Senator) Tokunbo Abiru explained that “Polaris Bank has achieved significant milestones since its inception on September 21, 2018, when we started this journey.
“We have 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 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.
