FULL YEAR RESULTS: SYKE BANK JUMPS FROM THE SKY



In the financial year 2015, Skye Bank PLC literarily jumped from the sky into heavy loss.
According to audited figures released not too long ago, Skye Bank ended with N37646m loss , that is multiples of the N19450m it recorded in 2014 as profit.
A number of factors were responsible. For one, interest expense leapt by 72.7% to N76993m even as interest income increased by only 18.6% to N127908m.
For another, there was 103.8% increase in provision for depreciation to N8946m even though fixed assets value only dropped marginally to N62973m.
Also, impairment for loan loss rose by 46% to N27536m and for possible loss on other assets to N7145m from N1959m.
Then, as part of the pressure package, staff cost almost doubled, rising by 94.3% to N38229m from N19676m.
If not, fee and commission had risen by 13.1% to N16862m while its attendant cost went down 4.41% and fair growth had been recorded in net trading ( 45.4% to N13457m) and other operational income by 19.5% to N5651m.
Hence Skye Bank reported net operating income drop of 35.6% to N50403m from 16.3% increase in gross earnings to N169529m.
When then 17.5% increase in administration expenses to N40874m was deducted along with staff cost and depreciation, the loss league was inevitable.
It is possible though that some of these new highs in expenses could be due to 2014 successful acquisition of Mainstreet Bank.
However, it was obvious too that Skye Bank is one of the banks currently exposed to more risky foreign loans since the inter bank market's downsizing of the Naira.
SKYE BANK PLC: Nbn. Full year
                             2015.        2014
Gross earnings  169.5.       145.7
Interest income 127.9.       108.8
Interest cost.       76.5.         44.6
Impairment(loan 27.5.         19.0
Commission.       16.9.         14.9
Commission cost 1.80.        1.88
Net trading.          13.5.        9.25
Other income.        5.65.      4.73
Impairment assets 7.15.     1.96
Net op. Income.   50.4.       78.3
Staff cost. C.        38.2.       19.7
Administration     40.9.       34.8
Depreciation.         8.95.      4.39
Profit before tax  (37.6).    19.5
Margin%              (22.2).     13.3

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