Polaris Bank Limited has declared N28.9 billion profit before tax for full year 2020 ended December 31, a 4% growth from the corresponding period of 2019.
The performance, the bank’s financial statements said, is driven by the combination of the significant reduction in interest expense due to its 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 place the Bank as a key player in the industry. The Bank’s 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 Bank 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 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. Tokunbo Abiru explained that “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”.
Continuing, he noted, “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.”