SKYE Bank Plc has been Â Â Â rated by Renaissance Capital (Rencap) as the â€˜fastest growing tier two Nigerian bankâ€™.According to the July edition ofÂ Renaissance Capitalâ€™s report which focused on Nigerian banks, Skye Bank made significant and greater market share gains than any other tier-two Nigerian bank between 2002 and 2008 despite the challenges of a five-way merger.
It noted that the bank built a national banking franchise with 244 branches, 600 Automated Teller Machines (ATMs) and more than 10 transaction centres across Nigeria between 2002 and 2008.
The report further disclosed that most of the bankâ€™s branches are in the countryâ€™s South West, South South and South East regions which account for 82 per cent of its branches, while 18 per cent of its branches are in the north.
The report declaredâ€ â€œIn our view, Skye Bankâ€™s proven ability to deliver growth on the back of a challenging period of integration will competitively position it as a future consolidator of the Nigerian banking universe.â€
It further noted the bankâ€™s historical bias towards the key regions where it has established its presence has translated into strong market shares in all of these areas.
Specifically, the report noted that Skye Bank was strong in federal revenue collections where it accounts for 10 percent of FIRS collections; internally generated revenue collections and Interswitch transactions.
Commenting on the bankâ€™s Board, Rencap said the stable board had translated to the success of the bank in growing its market share, increasing profitability and expanding its operations across the country.
On the bankâ€s 2008 financial result, the report identified strong net interest income growth (79 percent) on the back on strong loan growth and efficient cost management which has seen revenues (81 per cent) outstripping operating costs (48 per cent).
Rencap gave a â€˜buyâ€™ rating for Skye Bank and N12.20 share target price on the strength of the fact that it trades at a â€œ2009 Price Earnings ratio of 4.4x and 2009 P/B of 0.64x, representing discounts to our universe of Nigerian banks of 37 per cent on 2009EP/B and 65 per cent on 2009E P/Eâ€.