Skye Bank To Publish Names Of Bad Debtors | Independent Newspapers Limited
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Skye Bank To Publish Names Of Bad Debtors

Posted: Jun 17, 2015 at 12:11 am   /   by   /   comments (0)

By Bamidele Ogunwusi, Lagos


Management of Skye Bank has stated that the reason for acquiring Mainstreet Bank was for economics of scale as the bank will now be dorminant in the South East and South-South regions of the country. It will also enable the bank expand its customer base.

Group Managing Director of the bank, Mr. Timothy Oguntayo,  who disclosed this at a media briefing in Lagos, said acquisition of

Mainstreet Bank with its low cost deposit and two million customer base will make Skye Bank with a four million customer base stronger.

Oguntayo also stated that the increase in the bank’s non performing loans portfolio in the 2014 financial year was as a result of the bank’s exposures in three sectors, namely Oil and Gas, Real Estate and Maritime.

He said the dwindling global oil prices, coupled with slow pace in real estate investment and challenges in the maritime sector had impacted negatively on its bottom-line.

This, he said, led to the not too impressive non-performing loans (NPLs) portfolio, which had moved, from 3.1 percent in 2013 to 4.9 percent in 2014 and 6.1 percent as at the close of first quarter of 2015.

As a result of this, Oguntayo said the bank would publish names of delinquent borrowers whose debts have remained non-performing in national newspapers. He said the bank has collated the list of its chronic debtors and intended to publish them before the end of the month.

He disclosed that the lender’s decision is in line with Central Bank of Nigeria (CBN) directive to halt the rising trend of non-performing loans (NPLs) in the industry and also ensure that the industry NPL ratio does not exceed the prudential limit of five per cent.

His words:  “Skye Bank by end of June will publish debtors that have not come forward to either pay or make reasonable repayment programme with the bank. We intend to go after those debtors with any available legal means in order for us to regain our money,” he said.

Speaking on the bank exposure to Power Sector, he revealed that bank total exposure in the power sector is about N5 billion and that the bank was aware that cash flow from the power sector is going to take sometime and agreement was reached on how the credit facility can be serviced.



He noted that Skye bank in conjunction with four other financial institutions had financed loan acquisition in the power sector.