Skye Bank to raise new capital in first quarter 2016

Skye Bank Plc has started arrangements to raise additional equity funds within the next two and half months as the commercial bank seeks to beef up its capital base and improve its working capital.

Group managing director, Skye Bank, Mr. Timothy Oguntayo, who disclosed this yesterday 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.

He expressed optimism that the new capital raising exercise could be completed during the first quarter.

He however noted that the bank’s capital adequacy ratio of 15.87 per cent, out of which 12.4 per cent is covered by common equity, was already in compliance with Basel 11 provisions.

He said the bank is shifting its business focus to retail and commercial banking as it enters a new growth phase after the acquisition and integration of erstwhile Mainstreet Bank Limited.

Oguntayo said retail banking as the bank’s new business focus would be pursued in 2016 for more traction adding that the small and medium enterprises (SMEs), small businesses and priority banking would be strengthened.

He said the bank has set for itself in the medium to long term, strategies to achieve growth for the good of shareholders and other stakeholder.

He recalled that in 2015 the board of the bank had 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, business continuity and IT management for the integrity of its operations as part of efforts to strengthen 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.