The Nation Newspaper

Tag: SKYE BANK

  • Skye Bank to train exporters, importers

    Skye Bank Plc has said it will organise capacity building workshops for its international trade customers. The training, it said, in a statement, is on how they can conduct their businesses and ensure proper documentation of trade requirements.

    Head of International Operations of the bank, Mr Ade Busari, who disclosed this, said in addition to organising periodic workshops for the businessmen, the bank would continue to train account officers in the various branch locations on trends in foreign trade requirements for transmission to the exporters and importers.

    He said the bank would continue to ensure that its customers’ ‘Forms M’ are not rejected by inspection agents, which has the implication of delaying transactions.

    “We will continue to ensure that our customers know what they need at every stage and what they are supposed to do to make their business easy, convenient and fast,” he said.

    Busari said the bank had organised a forum each in Lagos and Ibadan for importers and exporters to explain trade issues, documentation requirements, as well as providing solutions to some of their perceived misgivings and uncertainties concerning international trade.

     

    He advised the customers to always come to the bank to make enquiries on issues that they are not conversant with, noting that the bank would always avail them of all necessary information they require to succeed in their business. Busari said the lender is working on measures to further make international business easy for its clients irrespective of the country of their trading partners.

    Busari said account officers of the bank in all the branches who have been relating with the importers and exporters have in recent times increased their customer education activity to make international trade simple and delightful to customers.

     

  • Five banks’gross earnings hit N388b

    Gross earnings of Guaranty Trust Bank (GTB), Zenith Bank, Access Bank, Skye Bank and Enterprise Bank rose to N388.9 billion last year, according to data compiled by The Nation.

    GTB’s gross earnings were N221.9 billion and profit after tax was N87.3 billion, indicating 68.7 per cent leap from N51.7 billion in 2011. Further review shows that the bank recorded a slight growth in risk assets, with its loan book expanding by 11 per cent year on year – almost flat at 0.3 per cent quarter-on-quarter.

    The bank grew deposits by 11.9 per cent last year despite what is believed to be the restrictive monetary policy of the Central Bank of Nigeria (CBN).

    On a quarterly basis, growth in the GTB’s net interest income was on downward trend, slowing from 103.8 per cent in the second quarter to 50.1 per cent in third quarter and narrowed down to 36.4 per cent in the fourth quarter of 2012.

    Renaissance Capital (RenCap) said in an emailed report that it viewed GTB’s results as positive, reinforcing the best-in-class operating efficiency and profitability of the lender.

    “While noting that exceptional income from the sale of its last subsidiary, GT Homes in May 2012, may have also contributed to its earnings, however slight, we would like to highlight the bank’s rather strong operating performance,” it said.

    Zenith Bank’s net income rose to N100.68 billion in 2012 from N48.7 billion a year earlier, as its cost-to- income ratio fell to 54 per cent from 63 per cent. “Zenith’s operating efficiency showed material improvement” driving earnings higher, Muyiwa Oni and Rele Adesina, Lagos-based analysts at Stanbic IBTC Holding Co, wrote in an e-mailed note to Bloomberg.

    Zenith doesn’t expect Nigerian bank industry earnings this year to be “as aggressive” as in 2012, Chief Executive Officer Godwin Emefiele said during a March 21 interview.

    Access Bank Plc said full-year profit more than doubled as customer deposits increased. Net income advanced to N38.6 billion in 2012 from N14.5 billion a year earlier. Revenue rose 54 per cent to N208.3 billion as loans and advances to customers climbed five per cent to N604 billion. Deposits grew nine per cent to N1.2 trillion. Access Bank restrained its loan book following its purchase of Intercontinental Bank Plc in 2011, Chief Executive Officer Aigboje Aig-Imoukhuede said in October.

    Another lender, Skye Bank Plc announced N12.64 billion profit after tax for the year ended December 31, 2012. Key extracts of the lender’s audited report showed that the result represents an increase of 872.6 per cent on N1.30 billion recorded in 2011.

    Profit Before Tax (PBT) rose from N2.84 billion in 2011 to N16.51 billion in 2012. The bank maintained a steady top-line in 2012 with net interest income and net non-interest income of N44.50 billion and N22.60 billion.

    In a statement, the bank said its audited report and accounts for the year ended December 31, 2012 showed remarkable improvement in profitability as it harnessed its vast business base and increasingly efficient cost management to deliver impressive returns to shareholders.

    “On the basis of the impressive bottom-line, the board of the bank has recommended an increase in cash dividend per share from 25 kobo paid for 2011 business year to 50 kobo for 2012. This performance underlined Skye Bank as a return-driven bank. Earnings per share increased to N1.01 in 2012 as against 20 kobo in 2011,” it said.

    Enterprise Bank Limited also announced PBT of N11.3 billion for 2012. The bank was one of the bridge banks that emerged on August 5, 2011 following the takeover by the Nigeria Deposit Insurance Corporation (NDIC) of the defunct Spring Bank Plc. The new bank was recapitalised by the Asset Management Corporation of Nigeria (AMCON).

    In a statement, the bank said the profit is a marked improvement from the loss of N5.2 billion for the five-month period it operated as Enterprise Bank in 2011 (August to December 2011). The PBT represents a growth of 316.6 per cent. Other figures from the result show that gross earnings grew by 283.9 per cent to N40.4 billion as at year ended December 2012, from N10.5 billion achieved in the five-month period in 2011.

    The bank’s deposit also grew from N162.6billion to N208.4 billion between the five months in 2011 and 2012 financial year. This represents a growth of about 28.2 per cent. Total assets also experienced a growth of 31 per cent between the periods from N198.5 billion as at end of 2011 to N261.1billion by the end of 2012.

    The Chairman of Enterprise Bank Limited, Mr Emeka Onwuka, attributed the achievement by the bank to a sustained growth in quality risk asset creation, which equally engendered growth in interest income.

    He stated that in addition, the bank’s other banking income items, such as commissions, fees, electronic banking income, significant improvements in trade-related transactions, facilitated through its strategic focus on Small and Medium scale Enterprises (SMEs) helped in boosting the bank’s fees and commission income.

  • Skye Bank to inject $150m into power sector

    Skye Bank to inject $150m into power sector

    Skye Bank on Monday said that it had concluded arrangements to inject about $150 million (N24 billion) in the power sector in 2013.

    Its Group Managing Director, Mr. Kehinde Durosinmi-Etti, disclosed this at the bank’s pre-Annual General Meeting media briefing in Lagos.

    Durosinmi-Etti said the bank would invest between $100 million to $150 million in the power sector, while 17 per cent of its loan portfolio would be invested in the upstream sector.

    He also said the bank was planning to raise N50 billion tier one capital for long-term investment purpose.

    The group managing director, according to the News Agency of Nigeria said the bank had commenced upgrading of its hardware and software which would be concluded in 2013 to ensure efficient service delivery to all its customers.

    He said the bank would open 12 new branches and 12 new cash centres across the country to improve its operational efficiency.

    The group managing director also said the bank had divested from all its non-bank subsidiaries in line with the directive of the Central Bank of Nigeria (CBN).

    Speaking on the bank’s performance for the 2012 financial year, he said that gross earnings grew by 25 per cent to N127.78 billion from N102.48 billion recorded in 2011.

    According to him, the bank’s profit before tax rose by 481 per cent to N16.52 billion from N2.84 billion recorded in 2011.

     

  • Tax remittance: Bank chiefs snub Reps’ panel

    Tax remittance: Bank chiefs snub Reps’ panel

    Investigation into remittance of tax to the Federal Inland Revenue Service (FIRS) by the House of Representatives Committee on Finance got underway on Monday with no bank chief executive officer in attendance.

    The committee is probing banks’ tax returns between 2008 and 2012 as well as level of compliance with collected tax remittances to the Federal government within the same period.

    Though 12 of the 21 banks under investigation sent representatives, all the bank CEOs were asked to present themselves before the committee on Wednesday or risk being forced to face the panel.

    However nine bank CEOs were specifically warned against being forced to appear before the committee on Wednesday with warrant of arrest.

    The affected banks are Zenith Bank, Sterling Bank, Stanbic IBTC, Skye Bank, Heritage Bank, FCMB, Ecobank and Enterprise Bank.

    Furthermore, the committee stressed that it will not entertain official lower than the rank of Executive Director should the CEO fail to make the meeting.

    In his opening remarks, Chairman of the Committee, Abdulmumin Jibrin, warned that the investigation should not be viewed as attempt by the committee to overstep its boundary.

    “We are here today in line with the oversight mandate of the committee on the FIRS and tax matters. Our vision is to strengthen the FIRS and optimize the potentials of our tax system.

    “All over the world, banks are under tight scrutiny by the parliament because of their strategic role in the economy and of course tax matters and treated with utmost importance,” Jubrin said.

     

     

  • Skye Bank records N5b Q1 profit

    Skye Bank records N5b Q1 profit

    Skye Bank Plc made good early strides in this financial year as the bank pooled a pre-tax profit of N4.6 billion on the back of 25 per cent increase in the top-line in the first quarter.

    Interim report and accounts of Skye Bank for the first quarter ended March 31, 2013 showed that it recorded significant growths in the incomes and profitability, with revenue growth largely driven by an impressive increase in its core banking operations.

    The report indicated that gross earnings rose by 24.6 per cent to N34.69 billion in first quarter 2013 as against N27.84 billion recorded in comparable period of 2012. Interest income had grown by 18.2 per cent from N23.04 billion to N27.22 billion, underlining the increasing market share in the banking industry. Profit before tax stood at N4.63 billion as against N4.09 billion in corresponding period while profit after tax rose from N3.48 billion to N3.71 billion.

    The balance sheet position of the bank remains strong with total assets and deposits of N1.1 trillion and N803.6 billion respectively. Shareholders’ funds closed the first quarter at N105.72 billion.

    The report raises expectations that the bank would, in the current financial year ending December 31, 2013; significantly surpass its performance in the previous year, when the bank had recorded the highest industry growth in net profit.

    Commenting on the outlook for the bank, Group Managing Director, Skye Bank Plc, Mr Kehinde Durosinmi-Etti, said the first quarter results placed the bank in a good stead to sustaining its impressive year-on-year performance.

    “We are glad to announce our first quarter 2013 results with measured growth in key performance indices. Our improved risk management processes and various efficiency practices are a signpost towards an optimistic financial year,” Durosinmi-Etti said.

    According to him, the bank’s top-line growth of 25 per cent was an indication of the increase in its business volume while its balance sheet size remained robust at N1.1 trillion.

    “We remain confident that despite intense competition, we are on track to deliver on our set targets for the year,” Durosinmi-Etti said.

    The report raises expectations that the bank would, in the current financial year ending December 31, 2013; significantly surpass its performance in the previous year, when the bank had recorded the highest industry growth in net profit.

    The audited report and accounts for the year ended December 31, 2012 had shown impressive growth in profitability as the bank rode on the back of expansive business base and increasingly efficient cost management to deliver impressive returns to shareholders.

    The report showed that profit after tax leapt to N12.64 billion in 2012, representing a remarkable increase of 872.6 per cent on N1.30 billion recorded in 2011. Profit before tax had leapt by 480.9 per cent from N2.84 billion in 2011 to N16.51 billion in 2012. The bank also recorded significant improvement in the top-line as gross earnings rose by about 25 per cent from N102.36 billion to N127.73 billion.

    On the basis of the impressive net earnings, the board of the bank has recommended an increase in cash dividend per share from 25 kobo paid for 2011 business year to 50 kobo for 2012.

     

  • NSE market indices record further depreciation

    NSE market indices record further depreciation

    Weekly transactions on the Nigerian Stock Exchange (NSE) closed on bearish note on Friday as the market indices depreciated further.

    The News Agency of Nigeria (NAN) reports that the market indices dropped by 0.34 per cent following price losses.

    The NSE All-Share Index lost 112.26 points to close at 33,159.08 against the 33,271.34 posted on Thursday.

    Also, the market capitalisation, which opened at N10.64 trillion, dropped N36 billion to close at N10.60 trillion.

    Total topped the losers’ table with N15 to close at N157 per share.

    Nestle trailed with N2.01 to close at N898, while Unilever lost N1.50 to close at N55 per share.

    Cadbury depreciated by N1.29 to close at N32.21, while Dangote Cement lost N1.15 to close at N158.85 per share.

    On the other hand, Ashaka Cement recorded the highest price gain to lead the gainers’ chart by 29k to close at N23.50 per share.

    Dangote Sugar came second on the gainers’ chart with 20k to close at N7.49, while RT Briscoe gained 18k to close at N2 per share.

    GTBank appreciated by 15k to close at N25.55, while John Holt increased by 14k to close at N1.54 per share.

    NAN reports that in all 123.54 million volume of shares valued N1.61 billion transacted in 3,876 deals.

    This is against the 634.71 million shares worth N4.24 billion exchanged by investors in 4,729 deals.

    Skye Bank emerged the most traded stock, accounting for 14.56 million shares valued N81.36 million.

    It was followed by GTBank with 10.66 million shares worth N272.19 million, whille FBN Holdings sold a total of 8.20 million shares valued at N162.24 million.

  • Skye Bank to deploy more PoS outside Lagos

    Skye Bank to deploy more PoS outside Lagos

    Skye Bank Plc has concluded plans to deploy 8,000 Point-of-Sale (PoS) terminals in states covered by the second phase of the Central Bank of Nigeria’s (CBN’s) cash-less policy. This is in addition to 7,000 PoS already deployed in Lagos bringing the total number to 15,000.

    The CBN had announced that by July, the cash-less policy would be extended to Ogun, Anambra, Rivers, Abia states and the Federal Capital Territory after a successful pilot test in Lagos State.

    In a statement, the Group Head, e-Channels, Skye Bank Plc, Mrs Chuks Iku, said to ensure the success of the exercise, branches of the bank in Kano and the FCT have been trained and had consequently started customer education in relation to how PoS could be used, providing product knowledge and creating awareness about the policy and other payment channels. He said the awareness exercise would start in the other states ahead of the roll out.

    He said the bank’s staff in the states, which would be covered under the second phase, are undergoing training to ensure that they treat customers’ issues proactively and professionally to make the exercise a success.

    He listed some benefits of the new cash-less policy to include safety of transactions, convenient payment arrangement, security and flexibility, saying it would boost trade and commerce. Iku urged members of the public in those states not to resist the cash-less policy but embrace it as its benefits are numerous. According to him, carrying cash has become very dangerous and unsafe.

     

  • Skye Bank finances new aviation services partnership

    Skye Bank finances new aviation services partnership

    Skye Bank Plc is bankrolling a major new initiative to boost air travellers’ in-flight experience as the financier of the strategic airline catering and logistics alliance between Servair, a foreign firm and Global Trade Investment Limited, a Nigerian company.

    Servair, a wholly owned subsidiary of Air France, brings world class management and technical expertise while Global Trade brings deep knowledge of the Nigerian market to create a customer service hub aimed at redefining in-flight experience. Skye Bank brings the finance to make the partnership a success.

    The Servair-Global Trade partnership will lead to an initial production capacity of 4,000 to 5,000 meal trays per day which will increase as market dictates. The hub of their operations is the Muritala Mohammed International Airport in Lagos, which is strategically positioned for this development with approximately 6.7 million passengers passing through it every year.

    Skye Bank is at the centre of the new initiative to make Nigeria the largest operational base of Servair in Africa. The bank is financing the 5000 meals per day in-flight catering facility with a 900m2 temperature controlled warehouse to cater for airlines under an Export Free Trade Processing Zone arrangement at the international wing of the Muritala Mohammed International Airport, Lagos.

    Besides in-flight food services, the Servair-Global Trade partnership also engages in handling of equipment and logistics consisting of the loading and unloading of aircraft, management and storage of airline products, provision of airport assistance from runway to the terminal, cleaning of the cabin, and preparation of clean and comfortable aircraft.

    The new project is another indication of Skye Bank’s commitments to projects and investments aimed at ensuring safety and comfort of air travellers. It should be recalled that Skye Bank Plc also provided finance for a new domestic airline, First Nation, which parades in its fleet modern aircraft in line with the requirements of the Nigeria Civil Aviation Authority (NCAA).

    Executive Director, Corporate and Investment Banking, Skye Bank Plc, Mr. Timothy Oguntayo said that the bank has been playing an active role in nurturing the industry to growth through funding of infrastructure, acquisition of aircraft and partnership with support service providers in the industry.

    He noted that the special nature of air travel makes the aviation industry a very sensitive one that requires high standards, effective regulation and complementary equipment to ensure safety of both passengers and aircraft.

    According to him, the intensity of airlines core services and activities often imposes financial constraints to the airlines but a strong financier like Skye Bank provides the necessary back-up to ease such strain and make air travelling more exciting.

    Industry analysts noted that most times, the high demands imposed on airlines in terms of having their aircraft well maintained and properly equipped with safety equipment leave the airlines with little or no time to attend to on-board customer service. Often, their preoccupation is the safety of flights and passengers which many national and international aviation regulatory agencies are out to regulate and enforce.

    As a result, there is a service gap left unfilled by the airlines which though may be not be given high premium by the airlines but which undeniably ranks high in the preference of air travelers-customer service.

    Analysts pointed out that with its array of services and solutions, Servair has helped many airlines globally to expand their businesses, ensure higher profitability and giving them a competitive edge.

    According to analysts, just as there is much emphasis on safety and standards in the aviation sector, creating an exciting and pleasant experience in air travel is no less important. Delighting air travelers and winning them over is now the ultimate desire of many airlines worldwide. This desire is borne out of the need to achieve repeat patronage and, consequently, increase market share.

    Analysts noted that by delegating the management of their on-board services to Servair, airlines can concentrate on their core business in all tranquility and optimize the quality of services given to passengers.

    Servair’s value proposition is to allow airlines concentrate fully on carrying passengers by offering them a complete range of customized services, a palette of turnkey solutions developed to offer the best possible ground and in-flight support to the airline world.

  • Sterling Bank gives out cash, prizes

    Sterling Bank at the weekend gave out cash prize of N2 million to four of its savings customers in the second monthly draw of the bank’s ongoing Savers’ Promo held in Lagos.
    The winners, who won N500,000 each, are Ofosu Yeboah (Alaba Main ETB Branch), Maurice Henry (Utako ETB Branch), Opakunle Muyibat Keinde (Iwo Road Branch) and Bienonwulu Loveth of (Asaba Branch).

    Other 10 customers also won home theatres and refrigerators as consolation prizes. They include Olatunde Aina, Rufai Oladunni, Onwuka Agbai, Abba Simon, Dioni Asemo among others.

    The winners emerged after electronic draws witnessed by Consumer Protection Council (CPC), National Lottery Regulatory Commission (NLRC), the media and members of staff of the bank. All the 14 winners emerged from 22,814 qualified entries pooled during the draws.

    The bank’s Group Head, Liability Products and Bancassurance, John Akingbade, said that the promo was about rewarding customer loyalty and promoting financial inclusion in the economy. He said the bank is giving priority to the need to firm its financial inclusion strategy to enable it bank millions of the unbanked within the population. “We are aware of the need to enhance financial inclusion and bring the unbanked into the financial system,” he said.

    Akingbade explained that to achieve this, the bank is promoting a classic savings account that allows prospective customers to open account with the bank with zero balance. He said the target of the bank is to ensure that more and more people within the unbanked population are captured into the financial system.

    “We are reaching out to the informal segment of the population like barbers, mechanics, technicians, tailors, and other small retail outlets that have been excluded from banking services,” he said.
    The promo is also expected to strengthen the bank’s deposit liabilities and position it to compete favourably in the industry.

    This qualifies them to win N500, 000 and other gift items such as blackberry phones, home theaters, refrigerators, microwave ovens among others.He encouraged customers of the bank to save more as such will increase their chances of winning the prizes.

    A representative of the Consumer Protection Council (CPC), Mrs Ngozika Obidike, said the commission was happy with the progress made so far in the second draw. She confirmed that the promo was registered with the commission and apologised for the omission of th bank’s name in a recently published advert on registed promos in the country. “The promo is transparent. The bank’s promo was also registered with CPC. It was an outright omission on our part. The Council will apologise to the bank and will include the lender in the next publication,” she said.

    Obidike said the bank has shown a lot of commitment in ensuring that its customers are rewarded an effort, she said, should be emulated by other banks.