Post Views: 772 For the first time since the Tunde Ayeni and Timothy Oguntayo-led board and management were fired and replaced by the current hands, S...
For the first time since the Tunde Ayeni and Timothy Oguntayo-led board and management were fired and replaced by the current hands, Skye Bank Plc, on Tuesday informed stakeholders through the Nigerian Stock Exchange (NSE) of plans to present its financial position soon.
The bank, in a statement by Babatunde Osibodu, its Company Secretary/General Counsel, said it has presented audited financial statements for the periods ended December 31, 2016 and 2017 to its primary regulator, the Central Bank of Nigeria (CBN) for approval.
This, it said, in a filing to the NSE is in addition to the unaudited result for the half-year ended June 30, 2018, following its board’s approval at a meeting held on Thursday, August 9, 2018.
All financials would be published after the CBN approval, the statement added, restating its unwavering commitment “to transparency, full disclosure, and compliance with regulatory requirements.”
According to the audited financials for the year ended December 31, 2015, the last submitted to the NSE (which may be restated by the current management), Skye Bank reported loss after tax of N40.726bn, as against the previous N18.717bn profit.
Total assets for the period stood at N1.199tr, down from N1.388tr in 2014, after cash and balances with the CBN dropped from N300.644bn to N205.147bn; while customer loans and advances rose to N704.896bn, up from N645.774bn.
Total liabilities slowed down to N1.095tr from N1.247tr, impacted significantly by the N199.157bn, or 20.91% drop in customer deposits from N952.302bn in 2014 to N753.145bn.
Recall that the CBN recently renewed the mandate of Skye Bank’s board, led by Alhaji Muhammad Ahmad (pioneer chief executive of the National Pension Commission (Pencom), and the Tokunbo Abiru-led management for a second two-year term until June 30, 2020, followed the success in bringing stability to the institution.
The CBN had on July 4, 2016, “intervened in the management of the bank by reconstituting the board of directors to pave the way for a new team to take charge of the affairs of the bank and resolve various issues that were hindering the optimal performance of the institution.
“Accordingly, the apex bank gave the board a clear mandate with particular focus areas to turn the institution around positively,” it added, assuring shareholders and other stakeholders of the commitment of the board and management.
Explaining the decision to intervene in the bank reminiscent of the one a decade early by his predecessor- now Alhaji Muhammad Sanusi II, Emir of Kano, CBN Governor, Godwin Emefiele said: “What we have seen since around late 2013 into 2014 and 2015 is that… prudential and adequacy ratios have been weakening and we thought it is not right for us to allow these to weaken to the point where it becomes irreversible and that is why we decided to take this action.
“It has nothing to do with being distressed. What we are trying to say is that we don’t want the prudential ratios of this bank to get to a situation where depositors’ funds get into risk and that is why this is happening.”