‘Skye Bank To Raise Fresh Capital In 2016 Qtr 1’ – C.E.O, Timothy Oguntayo

…details financial institutions long & short term strategies

Financial Institution, Skye Bank is set to raise it’s capital and Chief Executive Officer, Timothy Oguntayo provides reasons and strategies achieve and consolidate on this move in this material.

Skye Bank Plc., is to raise fresh capital during the first quarter of 2016 to beef up its capital base and improve its working capital just as it is shifting its business focus to retail and commercial banking as it enters a new growth phase after the acquisition and seamless integration of erstwhile Mainstreet Bank Limited.

The Group Managing Director/Chief Executive Officer of the Bank, Mr. Timothy Oguntayo, disclosed this on Wednesday 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 should 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), small businesses and priority banking 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 stakeholder.

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, 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.

Oguntayo said the bank had been working on continuous improvement in structure, practices and resource deployment in risk management, adoption of enterprise-wide risk management approach, board oversight on risk portfolio to ensure diversification of risks, as well as vibrant and proactive credit monitoring framework.