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‘It’s intended to cause panic’ — Polaris Bank dismisses report on purported sale by CBN

 


The management of Polaris Bank has denied reports that the company is about to be sold.

 

Recently, an online report claimed that the Central Bank of Nigeria (CBN) had commenced plans to “secretly sell” the bank for N40 billion.

 

But reacting in a statement on Friday, the bank dismissed the report, saying that it deliberately intended to cause panic.

 

It urged members of the public to ignore the report.

 

The bank assured its customers that a sale would only occur following regulatory approvals with formal notification to all relevant stakeholders.

 

“Our attention has been drawn to an online report on the purported sale of Polaris Bank Limited,” the statement reads.

 

“This publication is speculative, deliberately intended to create panic and should be disregarded by the banking public.

 

“Stakeholders may recall the regulatory intervention in the erstwhile Skye Bank by the CBN and the subsequent injection of capital via the Asset Management Corporation of Nigeria (AMCON) through a bridge bank process, which birthed Polaris Bank in 2018.

 

“The bank has since stabilised its operations following the intervention; improving its balance sheet, customer base and profitability.

 

“Whilst the intention has always been to return the bank to private ownership, such a sale would occur following regulatory approvals with formal notification to all relevant stakeholders. The bank is committed to ensuring timely communication to the public in such an event.

 

“The board and management hereby reassure its customers, staff and the general public that Polaris Bank remains a stable, strong and credible financial institution, positioned to deliver sustainable value to all its stakeholders.”

 

In September 2018, the CBN revoked the operating licence of Skye Bank. It then established and licensed Polaris Bank to assume all assets and liabilities of the defunct Skye Bank.

 

In an eventual acquisition deal the buyers would inherit N1.2 trillion injected into the bridge bank by AMCON.

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