Skye Bank recovers N60 billion from debtors, N6 billion from divestment
Stability is fast returning to Skye Bank Plc, as it had recorded a N60 billion recovery from its bad loan books.It also achieved a N6.2 billion cash inflow from full divestment from four local subsidiaries, and currently in the process of divesting from others, as part of strategies to weed it of unprofitable ventures and streamline operations for sustainable growth.
The bank affirmed last week that in efforts to stabilise activities, it has successfully implemented cost management initiatives which has enhanced liquidity and efficient service delivery to its customers since the regulatory induced take-over of the bank one year ago.
In a statement jointly signed by the bank’s Chairman, and Group Managing Director, M.K. Ahmad, and Tokunbo Abiru, they noted that through the support of regulators, the lender has successfully embarked on initiatives to restructure and reposition the bank. This is based on its broad mandate, which includes cost management and optimisation, as well as divestments to improve the institution’s financial position.
“We have also reached settlement and restructuring agreements with many of the chronic bad debtors resulting in substantially improved payments and prospects of future recoveries,” the statement said.
The statement pointed out that such cost containment measures include branch rationalisation, review of service contracts and cash management operations, which have resulted in hundreds of millions of financial savings.
Further noting some of its achievements, the bank said it has successfully arrested and managed the post-intervention situation and have to a large extent, stemmed the tide and reduced deposit losses, thereby restoring customer confidence and stabilising the institution.
It further noted that the new management has successfully settled many matured trade and bilateral obligations and restructured outstanding balances with the relevant institutions and counterparts.
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