24hrs after the Central Bank of Nigeria (CBN) announced 100% divestment of government ownership of Polaris Bank to a new core investor; Strategic Capital Investment Limited (SCIL) analysts are optimistic the bank will continue on the trajectory of growth.
Recall Vanguard reported earlier that SCIL paid an upfront consideration of N50 billion to acquire 100% of the equity of Polaris Bank which has performed relatively well making profit year-on-year from its first year of operation.
Speaking on the divestment, a business analyst, Chika Mbonu who spoke on Arise TV commended the management of the bank for leading a successful transition while urging the core investors (SCIL) to take the financial institution to the next level.
His words, “There was quite a protest over a rumour that the bank was sold for a paltry amount. However, we are happy that the CBN is now out to announce the name of the investors that won the bid, N50bn purchase consideration in addition to the N1.3 trillion that the CBN puts in to resuscitate the bank, which the core investors will take over that loan and pay it back.
“It is a better deal than other projects handled by AMCON and NDIC. You know, in our side of the country, if you don’t train your daughter very well, you won’t get good suitors; so, when you have lots of beautiful suitors, you must also commend the parents.
“We commend those who looked after the bank in the transitionary period, they turnaround the bank to profitability, stabilized it, and even moved into the value chain of digital banking.
“We see their advert regularly on our network; we commend the management and hope the core investors will come in and take the bank to the next level.”
Ola Aina, an Independent Lagos-based said, “This divestment has been long overdue and it could only get better now that new owners have taken over 100%.
“We look forward to a new Board and Management unveiled to see their growth plan, but I’m optimistic that it could only get better,
Another commentator familiar with the financial market said he could only see an upward growth trajectory “now that the hand’s brake is off.
“If Polaris Bank could be a profitable Bank year-on-year with regulators breathing down the neck of its Management, just imagine what the new management could achieve with the new core investor.”
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“I guess the dragon in Polaris Bank will be unleashed and let’s be optimistic based on what the brand has achieved thus far that it could do far better in the years ahead”, Ezenwa Obi, an Economist explained.
