GTB 737 banner Yudala banner

CBN extends lifeline to Skye Bank by another year

By News Express on 18/07/2017

Share on facebook Yahoo mail icon Gmail icon

Views: 352

•CBN Headquarters.
•CBN Headquarters.

 Nigeria’s central bank has extended guarantees to Skye Bank for another year while it considers the bank’s recapitalisation proposal, the mid-tier lender said in a statement.

The central bank shored up the Skye last year with a 100 billion naira ($328 million) capital injection, after sacking its top management for failing to meet minimum capital requirements. It then appointed a new management team.

The bank said it had recovered 60 billion naira in bad loans, closed some branches and sold four subsidiaries to boost capital in the past year.

Skye’s problems started after it used short-term funds to buy local lender Mainstreet Bank in 2014 but failed to raise fresh cash. It was in talks with shareholders and investors last year to raise 30 billion naira but suspended the plans when weak oil prices hit capital markets and drove foreign investors away.

“The bank continues to require assistance from central bank and government as it repairs the damage inflicted on the institution in the past and charts a sustainable path forward for the bank,” Skye Bank said in a statement.

It said it had reached restructuring agreements with many of the chronic bad debtors resulting in improved payments and prospects of future recoveries, it said in a statement.

Skye shares rose more than 3 percent on Tuesday and were up 16 percent this year, after last year’s 68 percent plunge.

The bank, which posted a pre-tax loss in 2015, said it had submitted its 2016 accounts for approval.

The central bank designated Skye as one of Nigeria’s systemically important banks due to the size of total deposits it holds after it acquired Mainstreet Bank. This means it has to increase its capital ratio to 16 percent, the industry average.

The bank said it has appointed advisers to guide it on a recapitalisation process and that it has identified various options with proposals being considered by the central bank. (Reuters)

 

Source News Express

Posted 18/07/2017 9:04 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

 

You may also like...
Revealed: Bajoga was appointed Kaduna Deputy Governor HOURS...

APC accuses NJC of jungle justice, demands reversal...

All set for secret trial of 1,600 Boko...

Nigerian Army set for ‘Exercise Crocodile Smile’

Buhari, Saraki, Dogara mourn Senator Adeleke

Boko Haram claims responsibility for N'Djamena and Maiduguri...

Turkey ready to help Nigeria fight terrorism: Erdogan...

Nude photo scandal rocks US military

Uduaghan cautions against sectional politics

Etiabas embrace hospitality industry, pledge to spoil tourists...

4 killed in Ondo bloody cult clash

Group accuses Ribadu of corruption, provides “proof” •Urges...

 

Latest News Champions League: Spurs surprise Real Madrid, Man City win, Liverpool run riot with goals Enugu Bishop remanded in prison over fraud Labour union hits Okorocha, demands immediate removal of Zuma’s statue in Owerri Osun, American firm strike $450m deal 5 ways to make your laptop battery last longer N5.1bn fraud: How Dudafa laundered money for Patience Jonathan — Witness Dasuki asks court to put off trial indefinitely •Insists on open trial Today’s Weather: Expect hazy conditions, localised thunderstorms — NiMet Edo plans Investment Summit to boost state’s economy NLNG MD outlines strategic development plan to boost gas production Buhari jets out for Turkey Wednesday for D-8 Summit, Ankara visit Lagos begins advocacy on emergency number

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (286,611 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (269,011 views) Shameless Genevieve Nnaji exposes breasts in public (217,822 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (183,041 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (179,163 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (161,641 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (140,035 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (128,533 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (123,355 views) Lagos plane crash: Journalist releases victims’ names (113,841 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (111,950 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (104,342 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (29) Business (2,724) Business Verdict (24) Columnists (754) Complaints & Requests (93) Enterprise & Opportunities (183) Entertainment (393) Features (497) Global Business Monitor (187) International (1,578) Interviews (134) Live Commentary (28) Love Matters (77) News (29,388) Opinion (824) Pidgin (8) Politics (3,980) Religion (645) Sports (1,338) Stock Watch (23) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN words on marble advert

 

 

#MonkeyPox outbreak

 

APO Group Partner

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!