CBN Declares Skye Bank Solvent, Dismisses Distress Report

Posted by African Examiner Business News, Latest Headlines Friday, November 27th, 2015

The Central Bank of Nigeria (CBN) has dispelled an online media report (not AFRICAN EXAMINER) purporting that nine Nigerian Banks, including Skye Bank are distressed.

The CBN’s Director of Communications, Ibrahim Mu’azu in a statement, dismissed the report that the Bank and eight others were found to be suffering from liquidity stress, after a CBN examination.

Entitled: “No Bank is in distress CBN”, the statement said the country’s apex Bank was categorical on the liquidity and sound health of Nigerian lenders, describing the report, not only as false and baseless, but “a figment of the writer’s imagination.

“The CBN hereby assures the banking public that the Nigerian banking system is sound and all banks are in compliance with both the regulatory and prudential requirement”, the statement read.

CBN Spokesperson drew attention of the general public, especially the Banks’ customers, to a statement made by its Governor, Mr. Godwin Emefiele during the Monetary Policy Committee Meeting (MPC) press briefing on November 24, 2015 in which he declared that “no Nigerian bank is in distress”.

Consequently, Emefiele urged all bank customers and the general public “to disregard the publication as it was false, mischievous and aimed at throwing the banking public into unnecessary panic.

In the meantime, Skye Bank has responded to the offensive publication, describing its liquidity as a “Tier 1 lender” while it waved the publication as “unfounded”.

In a statement issued by its Spokesperson, Rasheed Bolarinwa, Skye Bank said neither the CBN nor any other regulatory agency, conducted any stress test or bank examination on it, and insisting that the report was false and mischievous.

The report, Bolarinwa restated was a mere fabrication since no examination took place in the first instance, adding that the Bank recently released its 3rd quarter result which was submitted to the Nigeria Stock Exchange and widely published in the newspapers.

“Our Bank is healthy and meeting all obligations – financial and otherwise – to all stakeholders. Our financials are in the public domain as publicly quoted company for any interested observer to study. Just last month, we released and published our Q3 financials. We operate an International Banking license with subsidiaries in 3 countries across the sub-region namely: Sierra Leone, The Gambia and Guinea Conakry. We are above the 15 per cent minimum capital adequacy ratio as we have never at any time been below it. Our figures are published and so are public information”, the Bank stressed.

Skye Bank further stated its figures and fundamentals as contained in the 3rd quarter results were sound and robust. The lender indicated it has always surpassed all regulatory ratios and indices. The 3rd quarter result for year 2015 released by the bank early this month, showed that it recorded gross earnings of N129.24 billion at the end of September 30, 2015, representing an increase of 33.06 percent over the N97.13 billion recorded during the corresponding period in 2014.

The statement explained that the result showed very strong fundamentals in all the key performance indicators and strong growth in fees and interest income, as well as investment including other incomes.

“The bank’s fees and commission income grew to N25.46 billion as against N15.57 billion recorded during the same period in 2014. The result reflects a growth of 63.52 per cent. Similarly, investment and other income rose to N4.28 billion from N2.05 billion, representing 108.77 per cent growth.

“The result further showed that the bank’s profit before tax increased to N14.98 billion during the year under review from N12.33 billion during the same period in 2014, a growth of 21.45 per cent. Also, profit before tax increased by the same 21.45 per cent to N11.98 billion as against N9.87 billion in 2014”, Skye Bank reaffirmed.