|Skye Bank Group Assets Hit N927 billion|
Skye Bank Group, yesterday, released its 2011 audited financial year results in which it recorded an impressive growth in its asset base by 31.3% to N927.1 billion, from N705.9 billion recorded in 2010 financial year, showing an appreciable expansion in its business activities in spite of the challenging operating environment.
Similarly, deposit liabilities rose to N658.1 billion during the year under review from N507.6 billion in the previous year, reflecting a growth of 29.6%. From the results released on the trading floor of the Nigerian Stock Exchange, the Group’s operating income also grew by 22.5% from N60.8 billion in 2010 to N74.4 billion.
According to a statement from the Group Managing Director/Chief Executive Officer of the Bank, Mr. Kehinde Durosinmi-Etti, “the Group recorded growth in major indices of performance in the financial year. The Group reported a 24.8% growth in gross earnings (from N83.9 billion to N104.8 billion), which was represented by growth in interest income and fee and commission income. However, the 48.9% reduction in profit before tax, from N12.7 billion to N6.5 billion, was due to additional provisions of N15.9 billion for diminution in assets value.
“The Bank maintained its focus on certain business segments in which it has had good track records, in addition to new segments where it exploited business opportunities. The major growth areas included oil and gas commercial banking, retail banking, treasury, corporate and investment banking. This growth trajectory reflected in a 29.6% increase in deposit volumes in the year, from N507.6 billion to N658.1 billion, and a 22.3% growth in gross loans and advances from N424.8 billion to N519.7 billion”.
The statement also indicated that “the pattern of reduction of the non-performing loan (NPL) ratio remained consistent in 2011, as the ratio dropped significantly to 4.9%, from 11.9% reported last year”.
“In pursuit of efficiency, we focused on reinforcing our branch network by upgrading facilities, deepening deployment of products and services, and ensuring optimal human resource input for improved customer service.
We reaped good returns from the deepening of our treasury activities, which resulted in 545.9% and 274.2% growth in foreign exchange income and investment income, from N1.2 billion and N1.4 billion in 2010 to N7.8 billion and N5.1 billion respectively.
In conformity with our growth aspirations, we successfully raised additional tier-two capital of $100 million during the last quarter of 2011. This will support our ability to grow and sustain our business. We have made significant investments in the capacity of our people to give the best service to our customers. This was in the form of training and re-training, optimal performance management, focused and time-based customer service-oriented activities and processes, infrastructure deployment, and employee empowerment”.
Looking forward in 2012, the Bank said it “will conclude the process of divestment from non-core banking subsidiaries, as approved by our Board of Directors and regulators, during the second quarter of 2012. This will enable us focus on our main intermediation role in Nigeria and in our three foreign banking subsidiaries.
We will grow our business in existing segments, while seeking to expand into new markets and deploy new products and services.
In the new financial year, we will affirm our focus on diversifying our income streams toward non-interest income, in anticipation of interest rate and inflationary pressures, largely from the external environment. We will also re-invigorate our cost management and efficiency apparatus toward attaining optimal returns.
The ‘Cashless/Cash-lite’ policy provides a major vista for our Bank in 2012 and beyond, considering our well regarded footprints in technology-based infrastructure over the years. Therefore, we will continue to deploy top-range Information and Communication Technology (ICT) resources that will provide our customers with a vast bouquet of choices, reduce the strain on our physical facilities, and enable us meet our business growth targets.
At Skye Bank, we will also continue to provide our customers with the best service pivoted upon convenience, innovation, speed, and value. In doing this, the up-scaling of our customer service infrastructure will remain a major area of priority.”
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