Lagos (WorldStage Newsonline)—The research unit of World Stage Limited, publisher of WorldStage Newsonline, today released its Analysts Report on Skye Bank Plc, noting that its financial result for the period ended December 2011 fell short of stakeholders’ expectation, due to huge non performing loan through diminution in assets.
According to the analysts, the report (http://www.worldstagegroup.com/worldstagenew/media/11041121244673.pdf) showed that the bank's profitability ratio in the reviewed period was unimpressive when compared with the previous year as profit margin dropped by 7.0 basis points to 5.0 per cent from 12.0 per cent in 2010 while return on total assets (ROA) stood at 0.56 per cent, down from 1.46 per cent.
“Return on equity (ROE) also fell by 4.56 basis point to 4.69 per cent while interest margin close at 58.68 per cent. The percentage of income generated from loan and advances dip from previous year figure. It drops from 15.17 per cent to 13.95 per cent in 2011,” the report said.
Highlights of the report showed that; Profit before tax down by 48.9 per cent in 2011 from N12.73 billion in 2010, net profit dropped from N10.296 billion to N5.22 billion due to N23.75 billion loan provisions; Total assets increased substantially by 31.34 per cent to N927.1 billion in 2011 from N705.86 billion in 2010; Profit margin dropped by 7.0 basis points to 5.0 per cent from 12.0 per cent in 2010 while return on total assets (ROA) stood at 0.56 per cent, down from 1.46 per cent.
WorldStage Research had released a similar report on another Nigerian quoted bank, FCMB on June 7, 2012.