Timothy Oguntayo, managing director and chief executive officer of Skye Bank Plc
Timothy Oguntayo, managing director and chief executive officer of Skye Bank Plc

Timothy Oguntayo, managing director and chief executive officer of Skye Bank Plc, has resigned from the bank on Monday, July 4, 2016, following the takeover by the Central Bank of Nigeria, CBN.

According to a top source in the Central Bank, the apex bank’s action to take over Skye Bank was “already in effect” and the board of the bank has been sacked following a poor credit rating of “CCC+” from “B-” on liquidity and capital adequacy in June by Standard and Poor.

“There are capital issues casting doubts over the future of the bank,” the official, who didn’t wish to be named disclosed.

Mr. Oguntayo resigned in the morning in anticipation of the announcement by the CBN.

“We anticipate deterioration in Skye Bank’s asset quality metrics and profitability, which we think will markedly diminish the bank’s capital adequacy relative to the regulatory minimum and heighten refinancing risks,” the rating agency, Standard and Poor said in a press statement.

“Consequently, we are lowering our global scale ratings on Skye Bank to ‘CCC+’ from ‘B-‘ and our national scale rating to ‘ngB+’ from ‘ngBB’ and placing them on CreditWatch with negative implications. The CreditWatch reflects our concerns over Skye Bank’s compliance with regulatory capital adequacy minimum and the confidence sensitivity of its funding base.”

The bank is thought to have an estimated non-performing loan portfolio of N700bn, much of which is due to an overexposure in the oil and gas sector, the New Telegraph reports.

CBN is expected name a new management over the course of the week. There are speculations that the bank would be handed over to the Asset Management Company of Nigeria, AMCON which would buy up the bank’s “toxic loans”, pending when a new buyer is found.

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