Mainstreet Bank Merger Delays 2015 FY Results, Says Skye Bank | Independent Newspapers Limited
Newsletter subscribe

Stock Market Report

Mainstreet Bank Merger Delays 2015 FY Results, Says Skye Bank

Posted: Apr 5, 2016 at 3:00 am   /   by   /   comments (0)



Management of Skye Bank has stated that its merger with Mainstreet Bank is responsible for the delay in preparing its 2015 full year financial result.


The lender in a statement said: “This is to inform the Nigerian Stock Exchange, our regulatory authorities, esteemed shareholders and other stakeholders that the Annual Audited Financial Statement for Skye Bank Plc. for the year ended December 31, 2015 will not be filed on March 31, 2016 as required by the rules of the NSE.


“You will recall that Skye Bank combined its operations with that of MainStreet Bank Limited in June 2015. Prior to the merger, the two banks operated as separate entities for 5 months of the financial year, each operating on different IT platforms and firms of External Auditors.


The foregoing has necessitated additional external audit work on the part of the surviving audit firm, being the first post–merger period. The bank has sought the approval of the Exchange and relevant regulatory authorities for a four-week extension to file its audited financial statements for the year ended 31 December 2015.


Earlier in March, the bank said the lull in the oil industry and real estate sector of the nation’s economy has impacted negatively on the operations and it is expected to report a decline in profit for the financial year ended December 31, 2015.


In a profit warning notification to the capital market community, the management of Skye Bank Plc said the expected decline in performance is attributable to decision to recognise increased impairment on loans to sectors severely affected by the prevailing economic headwinds which are yet to abate, especially the lull in oil & gas and real estate sectors.


“While this cautious approach has been adopted, we have designed and commenced appropriate remedial processes to salvage the affected assets as soon as possible. Full details of the Group’s financial performance will be disclosed after regulatory approvals of the financial statements. We remain committed to our focus on supporting the growth of the retail and small and medium scale enterprise (SME) sectors amongst others,” the bank said.


Skye Bank explained that in 2015, it made substantial improvements to its risk management framework with a view to ensuring that its risk assets portfolio remains solid and of good quality.


“Our cost containment, internal efficiency and process improvement measures remain on track,” the bank added.


Skye Bank is the fifth financial institution informing investors to expect lower earnings for 2015 due to the challenging operating environment. FCMB Group, FBN Holdings Plc, Diamond Bank Plc, and Ecobank Transnational Incorporated have all notified the capital market community of the lower earnings.