Skye Bank to raise N30b tier one capital in Q3

SKYE Bank Plc has concluded arrangement to raise additional tier one capital of N30 billion during the third quarter of 2015 to boost its capacity to explore business and maintain an efficient capital adequacy ratio.

Group Managing Director/Chief Executive Officer of the bank, Timothy Oguntayo, stated this at a breakfast meeting with stockbrokers in Lagos recently.

He said Skye Bank would intensify its customer acquisition drive across retail segments as well as optimize deposit mix through mobilization of low cost funding to bring down its cost of doing business.

Speaking on the business focus of the bank, the bank CEO said retail banking, with particular emphasis on individuals and small and medium enterprises (SMEs), will be accorded top priority.

The bank, according to him, is currently partnering with the International Finance Corporation to strengthen its retail banking capacity and framework to underscore the importance attached to the new business focus.

He stressed the bank’s commitment to ensure that the bank’s customers imbibe the electronic banking culture to enjoy a pleasant banking experience at all times and across all channels.

On the acquisition of Mainstreet Bank Limited, Oguntayo explained that the exercise transformed the bank to become Nigeria’s 4th largest bank in terms of branch network, with the total branch network standing at 469 and 887 automated teller machines (ATMs).

According to Oguntayo, the combination of the two banks was expected to deliver significant operational synergies resulting in resource optimization and enhancement of shareholder value; as well as create opportunities to deploy e-channels products and capabilities to clients of Mainstreet Bank.

“Increased balance sheet size of the combined entity will provide an enhanced capacity to provide credit to a larger corporate and retail clients”, he said, adding that full integration of Mainstreet would be achieved in June this year.

Meanwhile, the bank achieved a Profit Before Tax (PBT) of N6.2 billion for the first quarter ended March 31, 2015, representing an increase of 82 per cent over the N3.4 billion recorded during the same period in 2013.

Similarly, the bank’s profit after tax grew to N5 billion during the review period compared to N2.7 billion achieved during the corresponding period in 2013, showing a rise of 85 per cent.