Both banks declared a better result for 3rd quarter of 2012 than that of 2011.
Skye Bank has announced a profit before tax of N16.55 billion for the third quarter of 2012 in its its released unaudited results for the third quarter.
The bank, which has foreign subsidiaries in Sierra Leone, Gambia, and Guinea, announced the results on Monday at the Nigerian Stock Exchange.
Following the release of results, the Group Managing Director/Chief Executive Officer of the bank, Kehinde Durosinmi-Etti, said the bank’s focus on efficiency, over the past few years, continued to put it in a vantage position to compete.
“We recorded an improved performance in Q3 2012, considering our 28 per cent growth in gross earnings, from N73.29 billion in September 2011 to N94.13 billion; and profit before tax growth of 45 per cent, at N16.55 billion ( compared to N11.38 billion in the corresponding period last year),” he said.
The bank’s balance sheet continued to grow, from N939.1 billion at year-end 2011, to N1.1 trillion.
During the period, total assets grew by 16 per cent and the growth in deposits was 23 per cent (from N666.9 billion at 2011 year-end to N821.5 billion). Also, gross loans and advances, excluding
other receivables, recorded a growth of 7 per cent, from N526.1 billion to N563.2 billion.
The bank’s approach of moderated branch expansion and tightening of capital expenditure resulted into a year-on-year 18 per cent reduction in depreciation expense, from N4.77 billion to N3.92 billion. Also, other operating expenses fell by 17.6 per cent, from N20.87 billion to N17.19 billion.
“This set of results places our Bank on a favorable pedestal to meet and surpass our projections
for the year,” Mr. Durosinmi-Etti said.
The bank said it remains committed to the continuous development of its risk management infrastructure and people, to manage its growing operations as well as ensure full implementation of its Enterprise-wide Risk Management Framework, which covers all facets of risk.
Mr. Durosinmi-Etti said in alignment with CBN’s accelerated implementation of Basle II & III Accord, the Bank, at the end of the second quarter, established a predictive risk analytics department to build on data generated from its already established Base compliant risk infrastructure.
Speaking on the outlook for the rest of the financial year, Mr. Durosinmi-Etti said the bank’s focus is “on efficiency, throughout our entire operations will be consolidated in the remaining part of the year”.
The bank chief promised to continue to support its Information & Communication Technology infrastructure, with a view to providing internal and external customers with the best platforms for superior service experience.
“In spite of our very challenging, operating environment, our shareholders should rest, assured of the provision of adequate returns,” he said.
A Banking Analyst at Renaissance Capital, an investment bank, said the profit after tax represents 84 per cent of the firm’s 2012 financial year forecast for the bank.
“At first read, the key driver for the outperformance was strong growth in interest income during the quarter, which outpaced the growth in funding costs,” he said.
Just like Skye Bank, the United Bank for Africa Plc (UBA) announced its unaudited financial results for the nine months ended September 30.
A profit of N44.86billion was achieved for the period, representing an increase of 376.22 per cent over the N9.42billion recorded in the corresponding period last year
“We continue to pursue our unique strategy of creating a diversified business in terms of geography and earnings mix. This combination of scale and depth is keeping us on target to deliver on all key performance guidance we set for this year” said Phillips Oduoza, UBA’s Group Managing Director and Chief Executive Officer.
“UBA has continued to build on the strong results recorded in the first two quarters of the year. The nine months results are a continuing vindication of our strategy of scale and diversification,” he added.