Originally Posted by ayo otesile
Pls can anyone tell me what is happening to skyebank? I don't think we have had anything from them after the consolidation era and till now and i hear they are coming to the market very soon.
I thought we should bear this in mind when they show up at the market soon, thanks to Businessday newspaper....
"The bank did not pay dividend to its shareholders in the financial year ended September 30, 2006 on the account that it had to settle the goodwill that accrued to it during consolidation exercise in 2005.
However, industry sources disclosed that the bank should be able to pay a dividend of 27kobo per share in 2007. This is expected to be derived from a projected profit after tax (PAT) of N4.07billion for the financial year ending September 30, 2007. In the corresponding period of 2006, PAT was N1.96billion compared with N0.492billion in 2005.
An official of the bank disclosed that the 2007 result would create more wealth for investors.
A cursory look at the Bank’s balance sheet figure for the last financial year showed Cash & Bank Balance /Total Deposit Ratio, which is a measure of cash available to meet depositors need in case of eventuality on the decline. While the bank had 30.5 per cent of total deposits in its vaults in 2005 to meet such unforeseen contingencies, only 12.9 per cent was available in 2006. It could not be ascertained whether the loans and advances were a fall out of the usual insider-related credits or part of the burdens and liability of the mergers.
Industry analysts suggest that it is expedient for the management and directors of the Bank to ascertain that quality credit risk control is not sacrificed for even satisfying the customers’ aspirations vis-ŕ-vis returns to shareholders.
"The fitness test conducted to ascertain how profitable Skye Bank was as of September 31, 2006 showed that Skye bank’s net profit margin was 5.75 per cent in 2006. This was lower than the industry’s average.
Return on Asset (ROA) was 0.7Per cent while Return on Equity (ROE) was 4.73 per cent in 2006". "
link BusinessDay... the voice of business - Skye Bank joins quest for huge capital base