Skye Bank to Beef Up Capital Base

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Timothy Oguntayo

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THE Skye Bank Plc has concluded plans to raise fresh funds during the first quarter of 2016 to beef up its capital base. 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 defunct Mainstreet Bank Limited.

Timothy Oguntayo, group managing director of the Bank, who disclosed this on Wednesday, January 20, at an interactive session with top stockbrokers in Lagos, 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.

The bank’s capital adequacy ratio of 15.87 percent out of which 12.4 percent is covered by common equity is already in compliance with Basel 11 provisions. According to Skye Bank, 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 actualise the lofty objectives of the bank, Oguntayo said that the bank set for itself from 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, he said the board of the bank appointed four new executive directors to the board, 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.

According to Oguntayo, 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 include retooling the locations acquired from the legacy Mainstreet Bank for the mobilisation 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.

— Feb 1, 2016 @ 01:00 GMT

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