Skye Bank To Raise Fresh Capital In 2016 First Quarter

Skye Bank To Raise Fresh Capital In 2016 First Quarter
Group Managing Director/Chief Executive Officer of the Bank, Mr. Timothy Oguntayo

Skye Bank Plc has concluded plans to raise fresh capital during the first quarter of 2016 to beef up its capital base and improve its working capital.

The bank will this year shift its business focus to retail and commercial banking as it enters a new growth phase after the acquisition and seamless integration of the erstwhile Mainstreet Bank Limited.

The Group Managing Director/Chief Executive Officer of the Bank, Mr. Timothy Oguntayo, disclosed this last week at an interactive session with top stockbrokers in Lagos.

Oguntayo said the bank had entered into discussions with some of its key shareholders and strategic potential investors for fresh capital injection, expressing optimism that the exercise would be completed during the first quarter.

Explaining further, the Skye Bank boss said its capital adequacy ratio of 15.87 per cent for the bank, out of which 12.4 per cent is covered by common equity, was already in compliance with Basel 11 provisions.

In addition, Oguntayo said retail banking as the bank’s new business focus would be pursued in 2016 for more traction. In particular, he said the Small and Medium Enterprises (SMEs) would be strengthened.

To actualize the lofty objectives of the bank, the CEO informed that the financial institution has set for itself in the medium to long term, strategies to achieve growth for the good of shareholders and other stakeholders.

Reeling out strides recorded by the Bank in 2015, the Skye Bank boss said the board of the bank appointed four new executive directors to the board; has concluded the design of a three-year strategic plan from 2016-2018; achieved certification by the British Standard Institution on IT Service management as well as business continuity and IT management for the integrity of its operations.

He said the bank had commenced structured capacity building programmes for the SME segment, working with the International Finance Corporation (IFC) on the business model and risk management framework and product innovation for its retail business.

Other measures taken to strengthen the retail banking business of the bank, according to him include retooling the locations acquired from the legacy Mainstreet Bank for the mobilization of cheap low cost funds, enhancement of the electronic channels to support the branch network and intensification of acquisition of customers across the retail segment.

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