Skye Bank Plans To Raise Fresh Capital

Skye Bank Plc has revealed that it is seeking to raise fresh capital in the first quarter of 2016 in a bid to shore up its capital base. 
This was disclosed by the group managing director/chief executive officer of the Bank, Mr. Timothy Oguntayo at an interactive session with top stockbrokers in Lagos.
Oguntayo said that the fresh capital will improve the bank’s 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.
According him, the bank is already in discussions with its key shareholders and some potential strategic investors who they believes provide the required capital, saying, “The sell-offs in the capital market has impacted negatively on fund-raising activities in the capital market with investors preferring to pitch institutional investors or shareholders with significant equity stake.”
He explained that the bank’s 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.
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.
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.
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.
According to him, other measures taken to strengthen the retail banking business of the bank 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.

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