Polaris Bank Limited has released its first Audited IFRS 2019 compliant financial result, posting a profit-before-tax of N27.8billion.
The bank said in a statement sent to PREMIUM TIMES on Sunday that the result followed the turn-around initiatives undertaken by the leadership of the Bank led by Adetokunbo Abiru.
According to the report, Polaris Bank posted a gross earnings of ₦150.8bilion and a profit-before-tax (PBT) of N27.8billion within the first full year of operation.
“The remarkable achievements coming in the first year of operations of the institution is a clear validation of regulatory induced interventions in the nation’s history,” the bank said.
The bank said it closed the 2019 financial year with total assets of N1.1trillion and shareholders funds of N83billion.
“The result shows that Polaris Bank’s Capital Adequacy Ratio (14%) and liquidity ratio (81%) are well above regulatory requirements demonstrating strong prudential compliance and strong capital buffer, careful liquidity management and resilience,” the statement continued.
“This result is coming amidst the highly challenging business environment which forced many businesses to cut down on their operating expenses.
“The Bank’s customer deposits stood at N857.9billion 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 N261billion providing the Bank with the desired headroom to accommodate 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 33.0% and 2.4% respectively for the year ended December 31st 2019.”
Commenting on the bank’s performance, Managing Director/Chief Executive Officer (MD/CEO), Mr 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 the nation’s challenging banking space.”
Expressing satisfaction with the Bank’s new corporate governance regime, Mr Abiru noted that “We shall continue to run an ethically governed Bank, upholding sound risk management practices and proactively taking measures to mitigate the impact of the adverse business environment while the Board and Management continue to guide the Bank towards a path of sustainable growth.”
According to the statement by the company, “Polaris Bank’s performance has assured a strong positive outlook for earnings, margins, and profitability improvement in its cautious pursuit of loan growth, a sustained strategy for operational efficiency, funding cost optimization, and efficient deposit mix. The headroom for loan creation no doubt presents an opportunity for improved margins.”
Going into the year 2020 and despite the challenging macroeconomic environment, the bank says it is poised to reap the benefits of its investment in both the capacity of its employees to improve service experience as well as in critical infrastructures that will support the digitization of its operations.
Polaris Bank describes itself as “a future-determining Bank committed to the delivery of industry-defining products, services, and digital platforms across all the sectors of the Nigerian economy.
“The Bank is a member of the United Nations Environment Programme Finance Initiative (UNEP FI), which seeks to engage the private sector and the global financial sector to help create a financial sector that serves people and the planet while delivering positive impact.”