By Babajide Komolafe
Polaris Bank Limited has recorded profit before tax of N27.8 billion in its first full year of operations, which ended December 31st 2019.
The bank in a statement said the sharp improvement in the fortunes of the bank followed from the turn-around initiatives undertaken by the leadership of the Bank led by the Managing Director/Chief Executive Officer, Mr. Adetokunbo Abiru.
According to the bank’s first full year financial result, the bank posted a gross earnings of N150.8 bilion, an indication of the clear validation of regulatory induced interventions in the nation’s history.
The bank also closed the 2019 financial year with Total Assets of N1.1trillion and Shareholders Fund of N83billion. A review of the results shows positive performance across most major key prudential ratios: capital adequacy, liquidity, Non-Performing Loans which is now significantly in compliance with stipulated regulatory requirements.
This result is coming amidst the highly challenging business environment which forced many businesses to cut down on their operating expenses.
The published result shows that Polaris Bank’s Capital Adequacy (14 percent) and liquidity (81 percent) ratios are well above regulatory requirements demonstrating strong prudential compliance and assuring a strong capital buffer, careful liquidity management and resilience.
The bank’s customer deposits stood at N857.9 billion even as the bank continues to focus on stable, low-cost deposits and well-diversified portfolio devoid of high concentration. Likewise, the loan book stood at N261 billion in December 2019 providing the bank with the desired headroom to accommodate the required growth in risk assets to support the nation’s economic growth.
The bank equally recorded a Return on Equity (ROE) and Return on Assets (ROA) of 33 percent and 2.4 percent for the year-end December 2019 respectively.
Commenting on the Bank’s performance, the Managing Director/Chief Executive Officer (MD/CEO) of Polaris Bank Limited, Mr. Adetokunbo Abiru said: “The emergence of Polaris Bank on September 21, 2018, has heralded a new dawn as it laid the foundation for institutional competitiveness and service innovation in Nigeria’s challenging banking space.”
He further noted that “Our strategy which anchors on rebuilding the franchise and strengthening the balance sheet position provide enablers for ongoing initiatives towards lean operations and efficient balance sheet management devoid of capital erosion risks.