Polaris Bank takes over distressed Skye Bank assets

Following the revocation of the operating license of Skye Bank, Polaris Bank, a new bridge bank will take over the assets and liabilities of Skye Bank, National Daily has gathered.

Announcing this on Friday, Chairman of the Nigerian Deposit Insurance Corporation (NDIC), Umaru Ibrahim, said the NDIC in collaboration with the Central Bank of Nigeria has approved the establishment of the bridge bank.

“Consequently, Polaris Bank Limited has been issued operating licence by the CBN and shall commence banking business from today, Friday, 21st September,” Umaru said.

“The operating license of Skye Bank has been revoked by the governor of the Central Bank and the NDIC has commenced its liquidation. The capitalisation of Polaris Bank Limited is being done by the Assets Management Corporation of Nigeria through the injection of about N786 billion to return the bank to soundness and profitability so as to enable its subsequent sale to credible and financially sound third-party acquirers.”

Emefiele said that although the bank’s performance improved after July 2016 when the Assets Management Corporation of Nigeria and the CBN stepped in.

“The result of our examinations and forensic audit of the bank revealed that the Skye Bank requires urgent recapitalisation as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN.

“We wish to assure all depositors that under this arrangement, their deposits shall remain safe and that normal banking services shall continue in the new bank on Monday, 24th September 2018, to ensure customers to transact their businesses seamlessly.”

The shares of Skye Bank will be temporarily suspended on the Nigerian Stock Exchange and Polaris Bank will begin operations on Monday in all Skye Bank offices.

Recall that the Central Bank of Nigeria (CBN) has sacked Board and Management of Skye Bank PLC with effect from July 4, 2016.

The apex banking regulatory noted that the bank failed in its Liquidity and Non-performing loan Ratios have been below and above the required thresholds, respectively.

The new board appointed by CBN include Alh. M. K. Ahmad as the new Chairman while Mr. Adetokunbo Abiru would be the new Managing Director of Skye bank Plc.