Skye Bank may sell some or all of its local and foreign subsidiaries as part of a review aimed at streamlining operations and boosting its capital adequacy, its chief financial officer told Reuters.
The Central Bank of Nigeria, CBN, shored up Skye Bank in July with a more than N100 billion capital injection, after sacking its top management for failing to meet minimum capital requirements.
It then appointed a new management team.
The bank’s CFO, Mr. Pius Olaoye said on Tuesday that the bank would sell subsidiaries if the pricing was right and has appointed advisers to help find buyers.
The bank, which holds an international bank license, has three subsidiaries in West Africa and 10 non-bank subsidiaries.
“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,” Olaoye told Reuters in a phone interview.
“If we get good offers then we’ll go ahead and spin off all of them, if not it will be selective.” Olaoye said the sale of subsidiaries will boost the bank’s capital adequacy, which stood at 10.4 percent last year, compared with an industry average of 16 percent.
He Olaoye said the new management was focused on growing the bank’s retail business, cutting costs and improving asset quality