The last has not been heard of Skye Bank PLC and its challenging future. The bank has just released its full year 2015 audited result showing that the bank made a net loss of NGN40.7 billion in 2015.
Gross interest revenue for the bank rose to NGN127,908 billion versus NGN107,847 billion. The increase in interest income was deflated by the rise in its interest expense that rose to NGN76,993 billion NGN44,572 billion the company spent in 2014.
On a cost to income ratio of 0.6, the bank is not managing its cost properly. The bank made a provision of NGN27,536 billion for loan impairments compared to NGN18,992 deducted last year.
The justification for Central Bank of Nigeria takeover is further accentuated given the fact that, Skye Bank’s net asset was NGN1,9 trillion and its liabilities was 1,0 trillion, the bank only has NGN1 billion from falling into the abyss.
The challenges before Skye Bank’s new management are humongous. First is to retrieve all loans that have become toxic. The bank will also need to regain customer confidence. The takeover by the CBN has already scared many to abandon the ship.
Skye Bank is a tier 2 bank, the group is primarily involved in wholesale, corporate and retail banking and mortgage nancing.
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