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By Chinwendu Obienyi
Polaris Bank Limited has released its full-year audited financial results for the year ended December 2020 posting a Profit Before Tax (PBT) of N28.9billion. The results, which show the bank’s second year scorecard after two years of operation, have further consolidated the its position of focussing on profitability, growth and value creation.
Details of the results show that its performance reflects a 4 per cent year-on-year (YoY) increase in pre-tax profit (PBT). The performance, according to the financial statements, is driven by the combination of the 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 per cent respectively which favourably place the bank as a key player in the industry. The bank’s total assets stood at N1.18trillion, a 3 per cent growth on the previous year while Shareholders Funds grew by N14billion (17 per cent), 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.
