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Kehinde Durosinmi-Etti speaks on his exit plan

By on May 12, 2014

Come July 31, the Managing Director/Chief Executive Officer, Skye Bank Plc, Mr. Kehinde Durosinmi-Etti, will be stepping aside from the bank where he has been calling the shot for the past four years as CEO. Durosinmi-Etti, a 1982 graduate of Economics from the University of Ibadan and fellow of the Chartered Association of Certified Accountants (ACCA), United Kingdom, in this interview with Festus Akanbi, speaks on his stewardship at the bank and his next plans

By the time you hand over to your successor on July 31, what will you describe as the greatest management lesson you have learnt from your position as chief executive of Skye Bank in a period of four years?
I will be handing over to my successor on July 31. As Chief Executive, my job is to give direction, lead from the front and bring out the reality in what all the employees do and especially management as they are the first line of interaction. To do this, you need a proper process flow of information and decisions taken, proper and timely execution with feedback and measurable reporting. The required information must also flow up to the board through the appropriate committees. You must rely on people and talent to make this work and as the leader you must have the skills, commitment and tenacity to make this work in a proper and effective manner to meet up with the organisation’s goals.

Considering the fact that you are leaving the position on your own volition, still bubbling with energy, it is given that you already have your retirement plans. Can you tell us what is next in your plans?
I do not have any definite plans and I do not consider it retirement. I am on a four-year contrac, which is renewable for another four years. I chose not to renew as I believe I have done enough for myself as an executive, earning my daily bread from banking. I will take a long holiday and then follow my instincts.

In an industry where many leaders don’t want to leave the scene until the tenure policy of the Central Bank of Nigeria limited the tenure of bank chiefs, one wonders why you chose to leave the stage now that Skye Bank is consolidating its position as a leading Tier2 bank. What happened?
I graduated from university in 1982, qualified as a chartered accountant in 1985 and started my banking career in a middle management position, heading the Accounts and Computer department. I first became a bank CEO in 1995, a position I held for two and a half years before I voluntarily resigned. I came back into banking in 2002, became CEO and gave it up in 2006, upon merger to become Deputy Managing Director. I was appointed for the third time, four years ago. So you can see that I have been CEO for more than 10 years collectively and my first stint was 19 years ago. From the onset, I made it clear that I would only do four years. I believe that I should give way to new people, new ideas and new vigous to run the bank.

Skye Bank came out with good performance ratios in its 2013 full year result in spite of the prevalence of regulatory headwinds last year. How were you able to achieve the feat?
Our performance was an improvement on the previous year and encouraging. Only shows that more work needs to be done. We worked to maintain and grow our relationships, improve on revenue, while managing costs as best as possible. We also had to deal with the increasing regulatory costs while finding ways to improve on our fee income since the basis for earning them had been greatly reduced. Employee self-belief egged us into achieving the level of performance we did.

Being a product of merger and acquisition, what will you recommend to banks planning to grow their business, merger and acquisition or organic growth?
Both methods can get you to where you want to go. Mergers have the advantage of propelling growth and increasing market share which is required in a competitive environment . From recent examples, mergers and acquisitions have enabled some banks to close the gap with the largest ones.

Some former bank chiefs were recently invited by the CBN to run some troubled banks. Will you be available for similar assignment in your retirement?
I will be ready to serve my country and the banking industry in any desired capacity and based on my circumstances at the time.

Unemployment has been blamed for the present social disorder in the country. How can banks assist in tackling this menace?
Banks can only employ a limited number of people directly. They can however channel their loans to opportunities and sectors that will require a large number of employees thereby aiding employment. This can only have a limited impact as what will improve employment is government policy direction and the state of the economy. Banks can only facilitate the improvement in employment.

In spite of banks’ pledge to support the ongoing power reforms, Nigerians still have the feeling that the new investors in the power sector have not been able to make a headway due to fund inadequacy. What is your take on this?
The problems with the power sector are fundamental and would need time and a lot of money to fix. The investment required is huge and can only be done over a time period . It cannot be fixed immediately . The banks have just engaged in financing the power assets sold and are carrying huge exposures that are still circumspect. It is still early days and banks will look at increasing exposures further, very cautiously. A better understanding of the state of the sector as it is today with new owners is required to enable them to continue to show interest .

As a player,  who played in the pre and post 2005 banking sector consolidation regime, how will you describe the financial health of Nigerian banks to meet the needs of the banking public today?
Today, we have large banks that can finance large ticket transactions in any sector of the economy. The capacity and liquidity of banks is however being limited by monetary policy regulation. We need to improve the level of liquidity in the banking system on a sustainable basis devoid of regulation. Banks are also focusing on improving their capacity to handle retail customers through the use of consumer products. Customers are now more aware of the products and services and their rights.
The use of electronic channels, payment systems and IT is central to the ease of service and it is ensuring good quality service and financial inclusion.
Pre 2005, all these possibilities were not there and it shows the level of transformation that has taken place. Today our banks are setting the pace in Africa, I believe there will still be a lot of improvements and growth. It can only get better.

 

 

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