Skye Bank searches for new funds to beef up capital base

Skye Bank Plc had discussed with key shareholders and strategic investors and has started the process to raise new additional capital by this quarter to bolster its capital base.

Group managing director, Skye Bank, Mr. Timothy Oguntayo, disclosed this on Wednesday at an interactive session with top stockbrokers in Lagos.

Oguntayo said the bank would use the new fund from the capital raising exercise to beef up its capital base and improve its working capital.

He said the bank had entered into discussions with some of its key shareholders and strategic potential investors for fresh capital injection noting that the new capital raising exercise could be completed during the first quarter.

He assured that the bank’s capital adequacy ratio of 15.87 per cent, out of which 12.4 per cent is covered by common equity, was already in compliance with Basel 11 provisions.

He said the bank is shifting its business focus to retail and commercial banking as it enters a new growth phase after the acquisition and integration of erstwhile Mainstreet Bank Limited.

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Oguntayo said retail banking as the bank’s new business focus would be pursued in 2016 for more traction adding that the small and medium enterprises (SMEs), small businesses and priority banking would be strengthened.

He said the bank has set for itself in the medium to long term, strategies to achieve growth for the good of shareholders and other stakeholder.

Interim report and accounts of Skye Bank for the nine-month report ended September 30, 2015 showed that gross earnings rose by 33.1 per cent to N129.24 billion in third quarter 2015 as against N97.13 billion recorded in comparable period of 2014. Interest income had grown by 25 per cent from N79.51 billion to N99.50 billion while non-interest income rose sharply by 69 per cent from N17.62 billion to N29.74 billion.

Profit before tax rose by 21.5 per cent from N12.33 billion to N14.98 billion while profit after tax also rose correspondingly by 21.5 per cent from N9.87 billion to N11.98 billion. Earnings per share for the nine-month period stood at 86 kobo in 2015 as against 75 kobo recorded in comparable period of 2014.

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