Newspaper reports suggest Skye Bank Plc is considering adopting the holding company (HoldCo) structure. The bank according to the report also disclosed that it has engaged the services of a consultant to look at the benefits of the banking model.
On whether it will close or retain branches
“We have engaged consultants to look at the value in Mainstreet Bank subsidiaries, to know their value. Should we sell them or should we retain them? And those that have adopted HoldCo structure, what is the advantage they have over the core-banking institutions? So at the end of the study, by the third quarter we would have taken decisions.”
He also said Skye Bank has achieved 50 per cent integration with Mainstreet Bank, explaining that the strategy intent of the acquisition of the acquisition was firstly for economies of scale.
On whether it will close branches
“The products harmonisation will has been scheduled for second quarter of this year,” he assured.
“We have just taken over Mainstreet Bank and we don’t want to be in a haste to rationalise branches. But there are some that are obvious. For instance, if we are located on this side of the road and Mainstreet Bank is also on same side of the road, unless the two branches can justify their existence, it will be a waste of money running two branches and two operating expenses.
“You know in Nigeria every bank has two generators. So, those are costs that we would avoid. For instance, if you have two branches in close proximity, one is owned by Skye Bank and Mainstreet is occupying a rented property in its own branch, it means then that we must collapse them into our property. But that is an ongoing process and before the end of the third quarter we must have determined all of that,” he explained.
“There are areas where Mainstreet is present which we are not, most especially the South-east and some areas. So, having presence in some of those areas, we would be able to tap from the opportunities there.