Skye Bank shifts business focus to retail/commercial banking

Skye Bank Plc has shifted its business focus to retail and commercial banking as it enters a new growth phase after the acquisition and seamless integration with the former Mainstreet Bank Limited.                  The bank also planned  to raise fresh capital during the first quarter of 2016 to beef up its capital base and improve its working capital just as it  rolled out activities to celebrate its ten years of existence as Skye bank as well as celebrate its customers and employees.

Skye Bank was formed after the merger and integration of five legacy banks on January 23, 2006. The legacy banks were the former  Prudent Bank Plc., EIB International Bank Plc., Bond Bank Limited, Reliance Bank Limited and Co-operative Bank Plc., all of which came together in 2006 in the wake of the banking industry recapitalization and consolidation programme of the Central Bank of Nigeria.

Interacting  with  stockbrokers in Lagos,  the Group Managing Director/Chief Executive Officer of the Bank, Mr. Timothy 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.
Oguntayo  further,  said the bank’s  capital adequacy ratio stood at  15.87 per cent, 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.

Commenting on the  milestone recorded by  the bank  Oguntayo, said the Bank had in its decade of integration and existence, recorded notable achievements, and received awards, accolades and recognition both at home and abroad.
Specifically, Oguntayo said the bank now boasts of a robust and cutting edge technology and an electronic payment channel acclaimed as among the best in the industry. The bank, he said, has supported many start-ups and nurtured their growth from infancy to publicly quoted companies in addition to several companies it provides funding and facilities to.

The Skye Bank boss recalled the successful and audacious bid the bank made for erstwhile Mainstreet Bank which it won and paid for in October 2014.
“In mid-2015, we successfully and seamlessly completed our integration with the acquired institution and harmonized our IT infrastructure, people and processes. Today, we are the fourth largest bank in Nigeria with branch network of over 400 and close to 900 ATMs spread across the country”, he said.
Oguntayo said the expanded branch network would enable the bank to provide convenience and proximity banking to its retail, SME and commercial banking customers, areas where the bank wants to focus on.