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Skye Bank records N17bn profit

By on April 10, 2014

Skye Bank Plc has announced a profit before tax of N17.136 billion for the financial year ended December 31, 2013.

The amount represents an increase of 3.79 per cent over the N16.510 billion recorded in the corresponding period in 2012.

According to the International Financial Reporting System’s (IFRS) compliant result submitted to the Nigeria Stock Exchange (NSE) yesterday, the bank’s profit after tax rose significantly to N16.023 billion compared with N12.644 billion posted in the previous year, showing an improvement of 26.7 per cent.
Other highlights of the results included growth in total assets from N1.073 trillion to N1.116 trillion, while its deposit liabilities also increased from N966 billion to N996 billion during the period under review, reflecting a growth of three per cent.

The bank’s total equity grew during the review period from 106.8 billion in 2012 to N120 billion in 2013, indicating its financial stability and solidity.

Its earnings per share also rose to 121 kobo per share as against 101 kobo in the previous year.

The Group Managing Director/Chief Executive Officer (GMD/CEO), Mr. Kehinde Durosinmi-Etti, while commenting on the results said: “In a year beset with various regulatory headwinds on the backdrop of monetary policy tightening with attendant impact on liquidity, cost, fees, and overall earnings, our results showed positive growth on all performance indices.

“Having recorded gross earnings of N127.3billion, we grew our interest income by four per cent year- on-year from N101 billion to N105.3billion while our interest expense reduced by 23 per cent to close at N43.6 billion from N56.5billion.

“This reflected our focus at replacing relatively expensive term deposits with low-cost funding and the continuous use of our branch network to mobilise less costly deposits.”

He noted that the bank increased its net operating income year-on-year from N56.7billion to N68.5 billion, representing a 21 per cent growth.

In addition, it’s operating expense increased year-on-year by 28 per cent from N40.2 billion to N51.4 billion as a result of increased statutory payments and other operating costs.

“We are confident about the successful implementation of our tier 1 and tier 2 capital raising project within the year as planned, which would enable us deepen our penetration in existing markets, while also providing the avenue for exploring uncharted segments and other opportunities,” the Skye Bank boss added.

Furthermore, he said the bank was focused on using ICT as a business enabler and superior service delivery across all its channels, saying that the financial institution would intensify its drive for low cost deposits.

 

 

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