Skye Bank loses half its share value within 11 days of CBN ‘sack’

Skye Bank, Nigeria’s eighth biggest lender by assets, has lost more than half of its share value since the Central  Bank of Nigeria changed its top management 11 days ago.

The bank continued on a losing streak on Friday, losing about 1.64 percent of its share value to close trading at 60 kobo per share on Friday.

Since the CBN changed the leadership of the bank, on July 4, the bank has lost about 48 percent of its share value, bring its annual loss to 71.29 percent.

Timothy Oguntayo, the former chief executive officer of the bank, resigned on July 4 in anticipation of the CBN’s decision, with a new management taking charge immediately.

“The CBN has approved the appointment of Alhaji M.K Ahmad as the new Chairman of the Board, while Mr. Tokunbo Abiru has been appointed as the new Group Managing Director and CEO,” Skye Bank had said in a statement.

“Messrs. Bayo Sanni, Idris Yakubu, Markie Idowu and Abimbola Izu will continue in office as Executive Directors of the Bank. The former leadership of the Bank voluntarily resigned their positions in order to pave the way for a new team to further the new strategic direction of the Bank in the retail and commercial business space, having laid the foundations and set the necessary processes and structures.”

The new leadership of the bank visited the Nigerian Stock Exchange (NSE) at the beginning of their tenure, paying a courtesy call to seek cooperation and fair trade at such turbulent time in the bank’s history.

The bank has repeatedly urged shareholders to keep calm, promising that deposits with the bank remain safe.

Fitch ratings and the CBN corroborated Skye Bank’s stance, insisting that the bank remains a viable venture, with over N127 billion in revenue.

Source:Cable News