MD, Skye Bank, Kehinde Durosinmi-Etti
By Eromosele Abiodun
Managing Director/Chief Executive Officer of Skye Bank Plc, Mr. Kehinde Durosinmi-Etti, has stated that he and other members of the management team will continue to ensure adequate returns to shareholders in the years ahead.
Durosinmi-Etti who made these promises in a chat with journalists in Lagos yesterday said ensuring shareholders’ value and improved returns to stakeholders were the pivot and building blocks of its growth projection and future plans.
According to him, “For us, our projection and future plan is all about shareholders’ value. Even though the last year has been tough as we know, we have been able to still achieve some positive shareholders’ value, we have paid some dividends.”
He said, going forward, the bank will focus on building its brand value, increase its support for the real sector and continue to invest in its people and processes.
The Skye Bank boss added that the bank will also leverage its strength in electronic banking to grow its profitability and ensure a sustained increased in return on investment to shareholders.
The bank in its financial statement for the financial year ended December 31, 2011 declared a dividend of 25 kobo for its shareholders.
The dividend declaration was in spite of a 48 per cent decline in its profit before tax, from N12.7 billion in the 2010 financial to N6.5 billion in 2011.
However, the bank’s gross earnings grew by 24.8 per cent to N104.8 billion from N83.9 billion recorded in 2010.
Durosinmi-Etti said the improvement in its gross earnings was represented by growth in interest income and fee and commission income, while the decline in its profit was due to additional provisions of N15.9 billion for diminution in assets value.
The bank’s asset base appreciated by 31.3 per cent to N927.1 billion, from N705.9 billion recorded in 2010 financial year, “showing an appreciable expansion in its business activities in spite of the challenging operating environment,” Durosinmi-Etti said.
A review of Skye Bank Plc’s results showed that its deposit liabilities rose to N658.1 billion during the year under review from N507.6 billion in the previous year, reflecting a growth of 29.6 per cent, while operating income also grew by 22.5 per cent from N60.8 billion in 2010 to N74.4 billion.
Durosinmi-Etti further stated: “The Bank maintained its focus on certain business segments in which it has had good track records, in addition to new segments where it exploited business opportunities.
“The major growth areas included oil and gas commercial banking, retail banking, treasury, corporate and investment banking. This growth trajectory reflected in a 29.6 per cent increase in deposit volumes in the year, from N507.6 billion to N658.1 billion, and a 22.3 per cent growth in gross loans and advances from N424.8 billion to N519.7 billion.”
On the future plans of the bank, he said the bank is in the process of concluding its divestment from non-core banking subsidiaries, adding that the process will be completed during the second quarter of 2012.
Specifically, he said, this would enable us focus on our main intermediation role in Nigeria and in our three foreign banking subsidiaries.