• Thursday, May 23, 2024
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Skye Bank eyes N50billion in tier-2 capital by Q3

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Skye Bank plc will in the third-quarter (Q3) of 2013 be raising a tier-2 capital of about N50billion. The bank is also seeking to raise tier-1 capital.

Kehinde Durosinmi-Etti, group managing director/Chief Executive Officer, Skye Bank plc said the bank is developing a programme for the capital raising, adding “though subject to consultations, we are looking at between N50billion and N70billion in both tier-1 and tier-2 capital.”

Though above the 15 percent threshold by the Central Bank of Nigeria, Skye Bank capital adequacy ratio (CAR) in 2012 dropped to 16.9 percent from 17.5 percent in 2011.

“In our 2012 financials, we are recommending a dividend of 50kobo per share for our shareholders. We plan to open about 12 new branches this year,” Durosinmi-Etti said ahead of the bank’s annual general meeting.

Skye Bank plc audited results for the year ended December 31, 2012, showed that it recorded a profit after tax of N12.64 billion. The amount represented a significant increase of 872.6 percent, compared to the N1.30 billion it realised in 2011.

The financial report presented to the Nigerian Stock Exchange (NSE) also showed that the bank’s profit before tax jumped by 480.9 percent from N2.84 billion in 2011 to N16.51 billion in 2012.

The bank maintained a steady top-line in 2012 with net interest income and net non-interest income of N44.50 billion and N22.60 billion respectively

On the basis of the improved financial performance, the board of directors of Skye Bank recommended an increase in cash dividend per share from 25 kobo paid in 2011 to 50 kobo in 2012.