Nigeria: Skye Bank’s acquisition of Mainstreet Bank successful with profits rising to $30m over 3 months

Skye Bank’s acquisition of Mainstreet Bank is beginning to yield appreciable results as the consolidated result for the first quarter ending March 31, 2015 submitted to the Nigerian Stock Exchange (NSE) shows a significant rise in earnings and profits, thus justifying management’s strategic decision of an acquisition that had led to a bigger bank.

The expanded business activities is immediately reflected in the sharp rise in gross earnings which rose to N42.3 billion in the first quarter of 2015 from N34.3 billion in 2014, appreciating by 23 per cent. The Bank announced pre-tax profits of N6.2 billion, representing an increase of 82 per cent over the N3.4 billion recorded during the same period in 2014.

The bank’s bottom-line followed the growth trajectory as net profit or profit after tax sprang up to N5.0 billion during the review period compared to N2.7 billion achieved during the corresponding period in 2014, an 85 per cent rise.

In marginal terms, pretax profit margin for the period rose to 14.7 percent from less than 10 percent in the corresponding quarter. In percentage terms, this is over 49 percentage points from the equivalent quarter. What this means is that where the bank used to translate every one […]

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