A tenfold increase in Net Interest Income for the 2020 financial year has led to a 1,022 percent surge in profit for regional lender Providus Bank.
Providus Bank reported net interest income of N11.929 billion in the December 2020 period compared to N1.121 billion in 2019, according to data from the 2020 financial statements seen by MoneyCentral.
This helped to boost total comprehensive income or profit after tax by 1,022 percent to N6.441 billion in the 2020 period compared to N574.8 billion a year earlier.
Total assets for the lender came in at N373.3 billion in 2020, compared to N111.57 billion in 2019.
Asset growth was led by Loans and advances, which increased 152 percent to N101.37 billion, compared to N40.169 billion in 2019 and financial assets which surged to N121.88 billion, from N2.7 billion in 2019.
Deposits from customers also increased by 191 percent to N225.7 billion as the bank continued to attract customers through its Luxury, Value and Convenience service offerings.
ProvidusBank operates in a highly-regulated environment and its primary industry regulator, CBN, by its regulations stipulates N10 Billion as the minimum capital base for regional commercial banks.
This year Providus Bank concluded a restructuring of the Bank, leading to Clairvaux Investment Limited acquiring of all the issued and fully paid up ordinary shares currently held by the minority shareholders of the Bank holding a total of 1,214,881,012 ordinary shares of 50 kobo each in the Bank.
The proposed Restructuring is expected to involve the transfer of the entire shareholding in ProvidusBank held by the Minority Shareholders to Clairvaux Investment Limited in consideration for a cash payment of N1.00 per share to the Minority Shareholders, following which the Bank will become fully owned by Clairvaux and its designated nominee.
Providus Bank is a commercial bank based in Lagos, Nigeria. Founded in 2016, the bank provides debt financing facilities to small and medium-sized companies. The bank caters to industries such as agriculture, mining, hospitality, e-commerce, and art & entertainment.
Its tailored financial services delivery includes: Business Advisory, Portfolio Management, Personalised Relationship Management, Fast-tracked Service delivery and Self-service solutions.