Skye Bank Six Months Net Profit Dips By 31.2 %

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The net profit of Skye Bank Plc. in the first six months of this year has dipped by 31.16 per cent to N5.81 billion compared with N8.44 billion achieved in the corresponding period of 2013.

The bank’s profit profile is contained in the company’s audited result released by the Nigerian Stock Exchange (NSE) on Thursday in Lagos.

Also, the bank’s profit before tax dropped by 31.10 per cent to N7.27 billion as against N10.55 billion declared in the comparative period of 2013.

The gross earnings also decreased by 10.24 per cent to N63.88 billion compared with N71.17 billion achieved in the comparative period of 2013.

Its shareholders’ fund stood at N115.94 billion against N120.42 billion, a decrease of 3.72 per cent.

Earnings per share during the period under review stood at 0.44k in contrast to 0.64k recorded in the corresponding period of 2013.

However, its total assets rose to N1.31 trillion against N1.12 trillion declared in the comparative period of 2013.

The total liabilities increased to N1.02 trillion compared with N996.22 million declared in the corresponding period of 2013.

According to Mr. Timothy Oguntayo, the Group Managing Director of the bank, Skye is sourcing for $200 million tier two capital from development finance institutions in Europe to enhance operational activities.

He said that the bank had concluded $150 million facility that would be used in the second half of 2014.

Oguntayo said that the bank was well positioned to ensure enhanced dividend to all stakeholders, adding that the bank was targeting a return on equity of 22 per cent by 2016.

Oguntayo also urged the Governor of Central Bank of Nigeria, Godwin Emefiele, to ensure economic stability.

He said that the economy in the past had witnessed a lot of policy somersaults that should be corrected to ensure stability and growth.

Also speaking, Mr. Bamidele Ogunnaike, the bank’s Chief Finance Officer, said the bank had deployed stringent control measures to reduce operational cost.

Ogunnaike said the bank would balance deposit mix to ensure efficient service delivery and increment in deposit base.

He also said the bank had deployed 8,114 point of sales terminals and 593 automated trading machines across the country with enhanced capacity.

Ogunnaike said that the bank would take advantage of the various reforms in the country such as power, automobile sector reforms and agriculture to enhance growth.