Polaris Bank Records Profit Of N28.9 Billion For 2020 Financial Year

Nigerian Bank, Polaris, has recorded a profit (before tax) of N28.9 billion for the financial year ending in December 2020, according to its financial report. This is a growth of about 4 percent compared to the N27.83 billion the bank recorded in the previous year of 2019.

In the financial report, the bank disclosed that the rise in profitability as a result of its notable reduction in interest expense as it pursues low interest-bearing deposits and lower impairment charges on loans. Polaris announced a return on assets of 2.4 percent, and a return on equity of 29.4 percent in 2020, effectively establishing itself as a key player in the banking and financial services industry.

The bank saw a 3 percent rise in total assets to N1.18 trillion, and shareholders' funds went up by 14 billion. (mostly as a result of internally generated profits)

Customer deposits went up by N56 billion, and gross bank loan went up by N37 billion, to reflect its modest risk strategy for a portfolio of quality loans.

Mr. Innocent C. Ike, the MD/CEO of Polaris Bank, while commenting on the report said, “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 public, offering quality banking services at the cutting edge of technology”.

He further explained, “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."

According to him, the bank's three-year Corporate Transformation Plan has recently been reviewed in line with the changing operating environment to ensure a sustainable system of value creation.

Founded in 2018, Polaris Bank is a financial services provider in Nigeria, but with branches in different African countries including Sierra Leone, the Gambia, the Republic of Guinea, Liberia, Angola, and Equatorial Guinea. It took over from Skye Bank after the CBN, under Godwin Emefiele, revoked the license of Skye Bank.