Skye Bank Plc has recorded gross earnings of N12.5bn in the first three months of the 2007/2008 financial year.

This represents an increase of N3.8bn over the N8.7bn recorded in the previous first quarter.

A statement by the bank on Saturday, said the unaudited results for the first quarter ended December 31, 2007, showed that profit before tax rose by N2.9bn from N1.2bn in the corresponding period of the previous financial year, to N4.1bn.

This represented an increase of 241.66 per cent.

Profit attributable to shareholders in the period stood at N2.8bn, showing an improvement of N1.98bn or 242.42 per cent over the N817.7m recorded in the previous first quarter.

This translates to earnings per share of 37.31 kobo.

The statement added that the improvement could be traced to the bank’s conversion 22.40 kobo of every naira earned during the period to profit from the previous 9.39 kobo.

The bank is currently in the market to raise N50bn to position it for improved service delivery.

This will be raised through an offer for subscription of 2.231 billion ordinary shares at N14 each and 1.50 billion shares by way of rights to existing shareholders at N12.50 each.

The bank also hopes to allot 446.139 million units, preferentially at N14 each to identified investors.

The proceeds of the offer, expected to close on February 20, 2008, according to the bank, will be used to deepen Skye Bank’s retail infrastructure in Nigeria; strengthen subsidiaries’ capital base to support business growth; expand Skye Bank’s capital and network of branches; and fund its working capital.

The Deputy Group Managing Director of the bank, Mr. Kehinde Durosinmi-Etti, at a recent press briefing in Lagos, said that the amount being sought would be sufficient considering the business currently being undertaken by the bank.

The fund, he noted, was being raised because of the need to further consolidate on the gains so far recorded in the last two years of operation.

He said banks were now required to support growth and development in terms of project finance, consumer lending, among others.

“The issue of capital raising is a continuous one. There are various ways of raising capital, and as the business environment dictates, we will be raising more funds,” he said.