New Telegraph

Polaris Bank grows PBT by 4% to N28.9bn in 2020

Polaris Bank Limited has posted a four per cent rise in its profit before tax for the 2020 financial year to N28.9 billion from N27.8 billion in 2019, the lender’s full-year audited financial results for the year ended December 2020 show.

 

The results, according to a press release, show that the bank, after two years of operation, consolidated its position as a financial institution focused on the path of profitability, growth, and value creation.

 

Details of the results show that Polaris Bank’s 2020 performance was driven by a combination of 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 2.4 per cent and 29.4 percent respectively, which favorably place the lender as a key player in the industry.

 

Its total assets stood at N1.18 trillion, a three per cent growth on the previous year while shareholders’ funds grew by N14 billion (17 percent), largely attributable to internally generated profits.

 

Also, 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 its 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. (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 publics, 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.

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