Polaris Bank Limited has released its full-year audited financial results for the year ended December 2020, posting a Profit Before Tax (PBT) of N28.9 billion. The results which show the bank’s second year performance after two years of operation, indicates that it has consolidated its 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 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 and return on equity of 2.4 per cent and 29.4 per cent respectively which favorably place the Bank as a key player in the industry. The bank’s total assets stood at N1.18trillion, a 3 per cent growth on the previous year while shareholders’ funds grew by N14billion (17 per cent), largely attributable to internally generated profits.
Polaris Bank increased its customer deposits by N56 billion, predominantly low-cost deposits in spite of difficult economic and industry conditions, and increased its gross loan book by N38 billion reflecting the bank’s modest and prudent risk strategy to grow its portfolio of quality loans for optimal interest income generation.
Commenting on the bank’s performance, the managing director/CEO of the bank, Mr Innocent Ike said “Polaris Bank has achieved significant milestones since its inception in September 21, 2018 when we started this journey. We have since grown to earn the confidence of the banking publics, offering quality banking services at the cutting edge of technology.”
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. He said 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.
The board and management of Polaris Bank are believed to have upheld sound risk management practices and proactively taking measures to ensure the bank is on the path of value creation and sustainability.
Polaris Bank’s performance in the financial year 2020 is seen as a reflection of improvements in key performance indicators, assuring a strong positive outlook for earnings, margins and profitability, a cautious pursuit of loan growth, a sustained strategy for operational efficiency, funding cost optimization, and efficient deposit mix.