skye-bank

Skye Bank Plans Selling Subsidiaries To Have More Money

 

By Bola Kougbe

 

Pius Olayoye, Skye Bank Plc Chief Financial Officer, CFO,  has said the financial institution might sell some or all of its local and foreign subsidiaries so as to be able to streamline its operations and boost capital.

Olayoye told Reuters, Tuesday, that the bank would sell the subsidiaries if it gets the right price, and has appointed advisers to help find buyers.

“We’re looking at the various outlets that we have and some of those foreign subsidiaries are part of it. If we get good offers we will consider selling them off.

“If we get good offers then we’ll go ahead and spin off all of them, if not it will be selective”, he said.

Skye, which holds an international bank license, has three subsidiaries in West Africa and 10 non-bank subsidiaries. It problems started after it used short-term funds to acquire local lender Mainstreet Bank in 2014 and failed to raise fresh funds.

Olaoye said the proposed sale would shore up the insufficient capital Skye Bank currently faces, pegged at 10.4 percent last year, short of 16 percent industry benchmark.

Skye reported a loss in 2015 due to bad loans and is yet to report earnings for this year.

 

 

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