Diamond recovers as Skye Bank continues on losing streak

Diamond Bank recovers for the first time in four trading days, after losing about 27 percent of its share value in the past three trading days.

Skye Bank however continued on its losing streak for the fourth day after the Central Bank of Nigeria (CBN) dissolved the top management boards of bank.

On Tuesday, Diamond Bank gained 3.78 percent, to close at N1.92 – the first daily rise in four days.

Skye Bank on the other hand lost 7.59 percent to close the day at 73 kobo per share – losing over 33 percent of its share value in four trading days.

Skye Bank has lost 67.7 percent of its share value within the past year, while Diamond has lost 52.94 percent within the same fiscal year.

Due to capital adequacy issues, the CBN decided to dissolve the top management of Skye Bank, Nigeria’s eight biggest lender, leading to the resignation of Timothy Oguntayo, former chief executive officer (CEO) of the bank.

In the midst of all these, the apex bank, which serves as the industry regulator, says all Nigerian banks are healthy, showing no signs of distress.

“For the avoidance of doubt, the infusion of a new Board and Management for Skye Bank PLC is a proactive regulatory action meant to ensure that the bank does not continue to fail in its relevant prudential ratios. Neither Skye Bank nor any other bank in the industry is in distress,” CBN had said in a statement.

Fitch, one of the big three credit rating agencies in the world, affirmed the IDRs of eight Nigerian commercial banks and affirmed the Viability Ratings (VR) of all the banks.