Polaris bank's sale

Polaris Bank’s sale “Still Work In Progress” – AMCON

Polaris bank's sale

Polaris Bank’s sale “Still Work In Progress” – AMCON

Raphael Orji Raphael Orji May 15, 2020

Polaris bank’s sale – The Managing Director/Chief Executive Officer of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, has stated that the plan to sell Polaris Bank Limited, which is wholly owned by the Corporation is ‘work in progress’.

Kuru, who in an interview commended the management of the bank for positive performance recorded in its 2019 financial year said: “Like I always tell people, once you put money in a bank, the most fundamental thing is that you try and see how you can improve the financials of the bank.

“This is because those that would come to buy the bank would not be buying it based of the money that you put in there, but they are buying the value that has been created in the bank.

“So, you try to see how you can improve on the financials. But once you improve on the financials, you don’t keep it too long because nobody wants a temporary situation.

Read also: Polaris bank marks first year with N27.8bn profit

Kuru also said AMCON has recovered a total of N1.1 trillion from debtors since its establishment.
He said the amount recovered was as at the end of the first quarter of 2020, with cash accounting for about 60 per cent of the recovery, while non-cash assets were about 40 per cent.

The latest figure was an improvement by about N100 billion, compared with the N1 trillion disclosed by the corporation as of the comparable period of 2019.

Kuru, however, explained that the outbreak of the COVID-19 pandemic had slowed down the pace of recovery as the task involved more of physical content.

He said: “So far, we have recovered N1.1 trillion as at the end of the first quarter of 2020, before the lockdown was announced. But even within the lockdown, we have recovered between N5 and N10 billion.
“There are some people that are still meeting their obligations and there are assets that were forfeited that we have sold. So, even within this period, money is still coming in.”

Read also: First Bank Set To Merge With Heritage Bank, Polaris Bank

Responding to a question on how the pandemic has affected the operation of the corporation, Kuru said: “There are two types of obligors.

We have the willing obligors that you have arrived at a settlement with and they have a payment plan and they have been paying you. For example, somebody that has a brewery at Aba and he is paying let’s say N100 million monthly and now because of the pandemic, the factory is closed and he cannot meet his obligation.

“Or someone that has a factory and is producing roofing sheets in Kano and was paying us N200 million monthly, but because of the lockdown, the factory is closed, you don’t blame such persons.

Independent

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