CBN Sacks Entire Board of Skye Bank PLC

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The Central Bank of Nigeria, CBN has sacked all the management board of Skye Bank PLC. CBN will take over the bank till a buyer is gotten for the banks assets and liabilities.

The CBN said it is shutting out the bank’s board of directors after the deadline of June 31st 2016 given to the bank to recapitalise has expired. Skye Bank and some other banks have been threading in troubled region for a while. The bank’s capital adequacy ratio is below the benchmark minimum of 10% recommended by the CBN for all deposit money banks in Nigeria.

Skye Bank has been facing rocky financial futures more 12 months ago. Investors have deleverage on its stock.

Skye Bank
Skye Bank’s Share Price for the Past One year. Source: Bloomberg. Data is 15minutes delayed. Ts&Cs applies

As at 12 months ago, the bank’s share price was already trading around NGN2.82 per share. As we file in this report, bank’s share price now trades below NGN1 per share.

What Is Next?

Timothy Oguntayo, managing director of Skye Bank, has already dropped his resignation. The bank would be taken over by CBN and possibly handed over to the Asset Management Company of Nigeria, AMCON. AMCON would buy up the bank’s toxic loan and then make efforts to recover them from the bank’s chronic debtors.

Details to come in shortly.

 

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