Skye Bank shares rise after CBN extends support

Shares in Nigeria’s Skye Bank climbed 5 per cent on Wednesday after the lender said it had secured Central Bank of Nigeria (CBN) guarantees for another year and submitted its recapitalisation proposal to the regulator for approval.
According to Reuters report monitored by Business247News, the bank’s shares rose to 0.63 naira on the stock market.
Last year, the CBN injected 100 billion naira ($318 million) to shore-up the bank capital, after sacking its top management for failing to meet minimum capital requirements, and appointed a new management team to oversee the affairs of the bank.
In a statement on Tuesday, the bank said it had recovered 60 billion naira in bad loans, closed some branches and sold four subsidiaries to boost capital in the past year.
The bank, which posted a pre-tax loss in 2015, said it had submitted its 2016 financial accounts for approval to the regulator.
The bank’s shares outperformed the market index, which rose 0.55 percent to 33,619 points at 1232 GMT. They had lost 37.50 percent last year after the regulatory action.