Polaris Bank Supports Profit Growth with N28.9 Billion (PBT) in FY2020

Results details show that its performance for the full year 2020 reflects a 4% year-over-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 rate deposits and the reduction in impairments on loans and other financial assets. The Bank recorded a return on assets (ROA) and return on equity (ROE) of 2.4% and 29.4% respectively, which places it favorably as a key player in the sector. The Bank’s total assets stood at 1.18 trillion naira, a growth of 3% over the previous year, while shareholder funds increased by 14 billion naira (17%) , largely attributable to internally generated profits. The Bank increased its client deposits by 56 billion naira, mainly low-cost deposits despite difficult economic and industrial conditions, and increased its gross loan portfolio by 38 billion naira, reflecting the modest and prudent risk strategy of the Bank aiming to increase its portfolio of quality loans for optimal interest income. generation.

Commenting on the performance of the Bank, the Managing Director / CEO (CEO / CEO) of Polaris Bank Limited, Mr. Innocent C. Ike who succeeded during the year Mr. (now senator) Tokunbo Abiru explained that “Polaris Bank has achieved significant milestones since its inception in September 21, 2018 when we started this journey. Since then, we have grown to earn the trust of the banking public, by providing quality, state-of-the-art banking services. ”Continuing, he noted,“ 2020 has arguably been the most difficult year to see. which the world has faced for decades because of its negative impact. of COVID-19 on businesses and the economy. Yet the current result demonstrates the importance of deploying appropriate strategies and effectively validates our recent investment in technological solutions and the digitization of our products and processes, ”he added.

He explained that the Bank’s three-year business transformation plan has recently been revised in light of the changing operating environment and the dynamism of trends for the creation of sustainable value. Digital transformation remains one of the powerful strategies to strengthen the bank’s balance sheet, control costs and improve processes while providing customers with broader self-service offerings.

In the opinion of some financial analysts, Polaris Bank’s remarkable achievements in 2020 bear witness to the consolidation of its 2019 performance, the relevance of the Bank’s new corporate strategy, the depth of management and the good corporate governance.

The board and management of Polaris Bank have demonstrated a strong commitment to professionalism and business ethics by adhering to sound risk management practices and taking proactive steps to ensure that the Bank is on the path to value creation and sustainability. Polaris Bank’s performance in fiscal 2020 reflects commendable improvements in key performance indicators, ensuring strong positive outlook for earnings, margins and profitability, cautious continuation of loan growth, sustained strategy for operational efficiency, optimization of financing costs and an efficient deposit mix. The leeway for creating loans undoubtedly presents an opportunity to improve margins.

At the dawn of 2021 and despite the difficult macroeconomic environment, the Bank is poised to reap the benefits of its investments both in digitization and in the ability of its employees to improve the service experience.

Polaris Bank is a future-defining bank committed to providing industry-defining digital products, services and platforms across all sectors of the Nigerian economy. The Bank is a member of the United Nations Environment Program Finance Initiative (UNEP FI), which seeks to engage the private sector and the global financial sector to help build a financial sector that works for people and planet while having a positive impact.

Photo: https://mma.prnewswire.com/media/1498724/Polaris_Bank.jpg

SOURCE Polaris Bank


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