Polaris Bank’s restructuring plans, customer-centric approach ‘ll pave way for future success – MD

Polaris Bank has undergone a significant restructuring process to ensure her long-term sustainability that meet the evolving needs of its customers.

This disclosure was made by the Bank’s Managing Director/ CEO, Adekunle Sonola in an insightful interview with Proshare, where he shed light on the institution’s journey of transformation and its strategic plans for the future.

Sonola emphasized the importance of corporate governance and customer-centricity in driving business success. He stated, “Without purpose, a business loses its way and without integrity, it loses its soul. We are recalibrating with the customer’s needs as our primary consideration.” Sonola emphasized the bank’s commitment to winning back migrant customers and supporting resident ones.

Reflecting on the lessons learned from the Bank’s transitions, the Polaris Bank CEO explained, “Having loans and advances concentrated in a sector, business, or individual is like balancing twenty crates of eggs on your head, tripping over a pebble smashes all egg crates… Funding diversification and cost optimization are now an integral part of our future.” He highlighted the Bank’s focus on risk asset diversification and the need for a diversified funding base.

While discussing Polaris Bank’s strategic approaches, Sonola stated, “Aggressive customer acquisition and strengthened relationships… Improved digital play… Improved staff productivity… Cost optimization.” He emphasized the importance of superior customer experience asked a competitive tool, stating, “We are building this into the Bank’s operational DNA… Our customer journey experiences have been deconstructed across demographics.”

Soeaking on the Bank’s capitalization, the CEO highlighted, “The Bank operates well above the statutory 10% capital adequacy requirement… We are concluding arrangements to inject Tier II capital to support our asset growth aspirations… Our shareholders are ready and willing to inject additional capital into the Bank whenever the need arises.” He emphasized Polaris Bank’s commitment to maintaining adequate capitalization and supporting its growth objectives.

Addressing concerns about the Bank’s performance indicators, Sonola assured that, “Our funding costs have been very competitive in the industry… Earning asset growth is one we are driving… We are very confident our Net interest income and margin will witness considerable growth as our strategies mature.” He emphasized the Polaris Bank’s focus on controlling funding costs, growing earning assets, and improving net interest income.

Responding to questions about Polaris Bank’s size, Sonola stated that, “Our size, relative to other Tier II players, can be best appreciated against the legacy challenges of the Bank… we still consider size important as it affords more opportunities and possibilities.” He emphasized the Bank’s focus on value creation rather than sheer size and its commitment to being a major challenger among Tier II banks.

Sonola while addressing concerns about portfolio concentration, disclosed that, “Our risk management process and risk assessment framework are deliberately more rigorous than the statutory guidelines require, thereby helping us to identify concentration tendencies early and nipping them in the bud.”

Sonola expressed Polaris Bank’s commitment to further strengthening its capital base, stating, “We are concluding arrangements to inject Tier II capital into the Balance Sheet to support our growth aspirations… Our shareholders are ready and willing to inject Tier I capital into the books… The new owners are committed to providing necessary support towards building a strong and resilient financial position.” He emphasized the Bank’s dedication to sustainable value creation and its vision of being a dominant digitally-led retail franchise.

As Polaris Bank continues its transformative journey, guided by a customer-centric approach and strategic initiatives, it aims to position itself as a dominant digitally led retail franchise, delivering superior value to stakeholders.