CBN Renews Tenure Of Skye Bank Directors For Additional 2 Years

In a notice sent to the Nigerian Stock Exchange (NSE), Skye Bank announced that the Central Bank of Nigeria (CBN) has renewed the mandate of the Bank’s Board of Directors for an additional two-year term till 30th of June 2020.
The current board was appointed on July 4, 2016, and is made up of the following individuals: Muhammad K. Ahmad – Chairman; Adetokunbo Abiru – Group Managing Director (GMD)/Chief Executive Officer (CEO); Innocent Ike – Executive Director; Mohammed Abdullahi Sarki – Executive Director; Olu Odugbemi – Executive Director; Austin Jo-Madugu – Executive Director;
Abdullahi Umar – Non-Executive Director; Bata Garba Wakawa – Non-Executive Director.
The apex bank in April last year extended its financial support for the bank till the end of 2018. Over N100 billion has been injected into the bank.
The new management has taken stringent measures against its debtors, including reportedly writing to the Presidency for assistance in recovering funds from its former Chairman Tunde Ayeni.
Four of its local subsidiaries were sold for a total of N6.2 billion. The bank is in the process of divesting from its other subsidiaries.
The bank, however, did not make mention of when it would release the backlog of results. It last released its results for the 12 months ended December 2015, at a period when other banks are preparing to release their half-year 2018 results.
Its most recent results for the full year ended December 2015, show the bank made interest income of N127 billion, a loss after tax of N40.7 billion.
Skye Bank closed at N0.72 in today’s trading session on the NSE, up 9.09 per cent. Year to date, the stock is up 44% and was one of the best performing in the banking sector from January to June.
Skye Bank Plc is a product of the merger of five legacy banks as a result of the banking industry consolidation and recapitalisation exercise of 2005.
The legacy banks were Prudent Bank Plc, EIB International Plc, Bond Bank Limited, Reliance Bank Limited and Co-operative Bank Plc.
Then CBN Governor, Charles Soludo moved the minimum capitalisation requirements for banks from N2 billion to N25 billion. The move led to several mergers and acquisitions in the banking industry, as well as a rush to the capital markets to raise the required funds.
In 2014, Skye bank won the bid to acquire a 100 per cent stake of Asset Management Corporation of Nigeria (AMCON) in Mainstreet Bank Limited. Mainstreet bank was the bridge bank formed from Afribank, which had its licence revoked by the CBN.

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