3 June 2012

Nigeria: Skye Bank Shareholders Endorse N3.3 Billion Dividend

Shareholders of Skye Bank Plc have endorsed the payment of N3.3 billion as dividend to the bank's investors as proposed by the board of directors. This translates to 25 kobo dividend per share for the period ended December 31, 2012.

The bank's board of directors had proposed the 25 kobo dividend per share at the bank's 6th annual general meeting held Thursday in Lagos which was ratified by the shareholders who expressed delight at the bank's offering to them.

Speaking on the dividend pay out, the bank's chairman, Mr. Olatunde Ayeni, said the bank took the decision in furtherance of its commitment to deliver optimal returns to the shareholders.

Ayeni explained that in arriving at the dividend sum, the board also took into account the need to have reasonable reserves to maintain the going concern status of the bank.

While Addressing the shareholders, the bank's Group Managing Director/Chief Executive Officer, Mr. Kehinde Durosinmi-Etti, promised that the bank would continue to do all within its power to enhance shareholders' value and returns on investment.

According to him, the bank has been positioned for leadership role in the nation's banking industry and has been strengthened by capital injection and good corporate governance policy.

Commenting on the bank's result, he said the bank recorded an impressive growth in its asset base 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.

Similarly, Durosinmi-Etti said 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. According to the Skye Bank boss, the Group's operating income also grew by 22.5 per cent from N60.8 billion in 2010 to N74.4 billion.

"The liquidity ratio of the bank, at 32 per cent above the regulatory minimum ratio, was a sign-post of the funding position of the bank and its capacity to absorb both foreseen and latent shocks within the operating environment", he explained.

Eminent shareholders who spoke at the event applauded the bank's effort in delivering value to shareholders despite the tough operating environment. President of Shareholders Renaissance Association, Ambassador Olufemi Timothy, commended the board and management of the bank for providing good leadership and direction.

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