Skye Bank released its 2014 FY results today after months of waiting. The company announced Gross earnings were up 3.3% to N136.7billion. Net Interest Income was also up 2.6% to N63.2billion.
However, pre-tax profits nose-dived 47% to N10.4billion. The reason for the huge drop in pre-tax profits was because of a 10% rise in operating expenses. Operating expenses this year was N62.7billion compared to N57.1billion the prior year. Also, the company took a loan impairment charge of N18.9billion (2013 N12billion) slicing of a whopping 64.5% of operating profit of N29.4billion.
The company will go on to post an earnings per share of 75kobo, 48% down from the 144 kobo it post in 2013. The company also announced a bonus issue of 1 for every 20 shares owned but no cash dividends.
The result did not show enough information that could be used to determine how it paid for Mainstreet Bank. It also appears that it has not consolidated Mainstreet Bank to its books. However, its provisions and other liabilities jumped from N32billion in 2013 to N198.5billion in 2014 (about N60 billion in 2014 9 Months).
The company (as at time of writing this article) is yet to release the full set of results including disclosures.
You can download the current version released here.
I think it incorporates mainstreet. the intangible asset number seems very high compared with 2013 (i suspect goodwill is included here). PPE also doubled suggesting they took on more branches etc.their cash flow statement is a little worrying. their investing cash flow is positive which i think points to your article on how they purchased mainstreet.
Even after they raised minimum balance by 1k?