Skye Bank to Access Market for N30 Billion Tier 1 Capital

Goddy Egene

The Group Managing Director/ Chief Executive Officer of Skye Bank Plc, Mr. Timothy Oguntayo yesterday said the bank would access the capital market to raise additional tier one capital of N30 billion in the third quarter of 2015.

Oguntayo, who stated this at meeting with stockbrokers in Lagos, noted that the new capital would to bolster its capacity to explore business and maintain an efficient capital adequacy ratio( CAR).

According to him, final arrangement for the capital raising exercise would concluded after the bank’s annual general meeting schedule to hold early June. He disclosed that the fund would also assist the bank in the prosecution of its business focus, which is

retail banking, with particular emphasis on individuals and small and medium enterprises ( SMEs).

In order to make a success of the new business focus, he said the bank had gone into strategic partnership with the International Finance Corporation ( IFC) to strengthen its retail banking capacity and framework. He added that to bank’s risk processes are equally being strengthened.

Oguntayo said the acquisition of Mainstreet Bank Limited has made Skye Bank Nigeria’s 4th largest bank by branch network, with the total branch network standing at 469 with 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.

T H E N I G E R I A N S T O C K E X C H A N G E

Speaking on the financial performance of the bank, the GMD said Skye Bank bean 2015 on an impressive note with growth of 85 per cent in profit after tax ( PAT) for the first quarter ended March 31, 2015. PAT rose to N5 billion in 2015, from N2.7 billion posted in the corresponding period of 2014.