Stories by Amaka Ifeakandu
Lagos
Skye Bank has projected to increase its deposit by 20% in this current financial year. The bank also planned to grow its loan portfolio by 15% within the period while its return on average equity expected to improve by 17%.
Addressing newsmen at the bank’s pre-annual general meeting press briefing in Lagos, the chief finance officer, MrBamideleOgunnaike, said that the operating expenses rose by N11.23 billion or 28% to N51.44 billion from N40.21 billion recorded in the preceding year.
He, however, said that the Asset Management Company of Nigeria (AMCON) sinking funds expenses and Nigeria Deposit Insurance premium within the period increased to 26% from 11% recorded in 2012.
He stated that the cost of funds which declined from 6.8% in the preceding year to 4.7% was due to continuous focus on mobilising low-cost deposit and muted deposit growth in the year.
Ogunnaike pointed out that the bank’s non-performing loan (NPL) decreased by 36% from N28.1 billion to N18.0 billion in 2013 while cost of risk stood at two per cent. He further said that the continuous improvement on risk management practices led to the reduction on NPL and cost of risk.
The management of Skye bank targeted net interest margin of eight percent and capital adequacy ratio of 20% in 2014 financial year. Ogunnaike also said that the bank planned to upgrade the bank’s software fluxcube from version 6.2 to version 12.0 which would be completed in second quarter of 2014. He also said that there would be automation of operational process to support information and communication Technology transformation project. Other strategies to be adopted according to the CFO of the bank include deployment of stringent control measures to effectively manage operational cost and balancing of the bank’s deposit.
Also speaking, the group managing director of the bank, Timothy Oguntayo said that the bank planned to raise tier two capital of $200 million. He stated that the sourcing of $150 million has been concluded and one third of the fund would come in June this year while the bank would receive the balance in July. He said that the bank is currently looking at alternative source of power to enable it deliver good service to customers.
