Skye Bank Gets N100bn CBN Lifeline

IMAGE

Skye Bank Plc has received over
N100bn in liquidity from the
Central Bank of Nigeria since July
4 to shore up its operations, its
new Managing Director, Mr.
Tokunmbo Abiru, has said. He told reporters on Friday that
the CBN staff had been working
at the bank for two weeks to
support the lender, Reuters
reported.
The CBN had said it provided a loan to the lender to boost its
liquidity after Skye Bank
breached requirements on
capital and lending, a
development that made the
central bank to replace its Board of Directors and management.
The short-term lending facility
will allow new management to
“ensure that some withdrawals it
suffered in the wake of the
undue panic of last week do not adversely affect its operations,’’
the Acting Director, Corporate
Communications, CBN, Mr. Isaac
Okorafor, had said in an emailed
response to questions.
He said the CBN had also issued guarantees to the bank’s
depositors and creditors as a
demonstration of its health.
The CBN had replaced the top
managers of the bank earlier.
But while the regulator has moved to calm markets, saying
Skye and the industry remained
healthy, the bank’s stocks have
been plunging to record lows.
The CBN has said it has no plan
to sell Skye Bank. The CBN guarantee will not only
enhance Skye Bank’s interbank
trading and activities; but will
also provide assurance to the
other banks to continue to deal
with and trade with the bank’s instruments in the interbank
market.
Meanwhile, Abiru disclosed that
the bank posted pre-tax loss in
2015. Similarly, Learn Africa Plc,
Caverton Offshore Support Group Plc and ABC Transport Plc
recorded losses of various
degrees in their 2016 half-year
financial results
Skye Bank recorded a loss of
N40.7bn for 2015 financial, which is a drop from N18.7bn
profit recorded the previous
year.
Learn Africa posted a loss before
tax of N352.1m for 2016 H2
versus loss of N167.1m a year ago, according to the figures
presented by the firm to the
Nigerian Stock Exchange on
Friday.
Its half-year ended June 2016
revenue was N135.7m compared to N444.3m a year
ago.
Caverton Offshore Support
though reported a group half-
year revenue of N9.14bn
compared to N11.91m a year ago, recorded a group loss
before tax of N2.36bn versus
profit of N1.76bn a year ago.
ABC Transport also reported a
half-year loss before tax of
N333.8m for 2016. It had reported a profit of N64.5m a
year ago. Its half-year ended
June 2016 group revenue was
N3.71bn compared to N3.31bn
a year ago.

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