Skye Bank Plc has announced a profit before tax of N17.136 billion for the financial year ended December 31, 2013, representing an increase of 3.79 per cent over the N16.510 billion recorded during the corresponding period in 2012.
According to the International Financial Reporting System’s (IFRS) compliant result submitted to the Nigeria Stock Exchange on Tuesday, 8th April, 2014, 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 result include 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. Gross Earnings stood at N127.3billion 2012.
The bank’s total equity grew during the review period from 106.8 billion in 2012 to N120 billion in 2013, indicating the bank’s financial stability and solidity.
The bank’s loans and receivables also rose to N549.8 billion from N540.3 billion. As a measure of its growing good loan portfolio, the bank’s net interest income shot up to N61.69 billion from N44.5 billion in 2012, an increase of 38 per cent.
It 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 bank’s performance, 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 N127.3 billion, we grew our interest income by four percent Year on Year from N101.0 billion to N105.3 billion while our interest expense reduced by 23 percent to close at N43.6 billion from N56.5 billion. This reflected our focus at replacing relatively expensive term deposits with low-cost funding and the continuous use of our branch network to mobilize less costly deposits.
“With this, we increased our net operating income Year on Year from N56.7billion to N68.5billion, representing a 21 percent growth. Our operating expense increased YoY by 28 percent, from N40.2 billion to N51.4 billion as a result of increased statutory payments and other operating costs. We ended the year with a profit before tax and profit after tax of N17.1 billion and N16.0billion respectively, indicating growth of 3.8 percent and 26.7 percent respectively.
“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 Information Technology Transformation Project involving deployment of high-grade Banking Application Software, optimal disaster recovery, enhanced Information and Communication Technology (ICT) security backbone, etc, would be concluded in the next few weeks.
This Project, in tandem with our Mission Statement, testifies to our focus on using ICT as a business enabler and superior service delivery across all channels.
“While we intensify our drive for low cost deposits, the Bank will continue to strengthen various cost containment strategies, and invest more in employee capacity building with a view of creating innovative ideas to serve our customers better as enunciated in our Service Charter.
“Our various stakeholders should rest, assured that, in spite of the competitive and dynamic operating environment, our actions shall be informed by the quest for maximising their wealth and creating value”, he said