Investors King reports that Nigeria’s financial sector is buzzing with news of fines levied on eight banks and 18 publicly listed companies.
These fines, totaling N125 million, come as a consequence of these entities’ failure to file their audited financial statements for the year 2022 and their quarterly reports for the first half of 2023, as mandated by the Nigerian Exchange Group (NGX).
Among the banks facing penalties are Unity Bank, FBN Holdings, Access Holdings, Fidelity Bank, Jaiz Bank, Wema Bank, Guaranty Trust Holdings Plc, and Ecobank Transnational Incorporated.
In addition to the banks, various publicly traded companies, including John Holt, PZ Cussons, Notore Chemical, Glaxo SmithKline Consumer Nigeria, Industrial Medical and Gases Nigeria, and Juli Plc, have also been affected by these sanctions.
The NGX has stringent post-listing rules that demand quoted companies to furnish their audited results within 90 calendar days, or three months, following the conclusion of the financial year. These rules further require these companies to submit interim reports no later than 30 calendar days after the end of the respective period.
Our analysis of NGX’s latest X-Compliance Report reveals that FBN Holdings faced fines due to delays in submitting its 2022 financial results and its Q1 2023 report. For these infractions, the lender incurred fines of N6.3 million and N3.3 million, respectively.
Unity Bank, on the other hand, paid N6.4 million for failing to submit its 2022 results promptly and an additional N3.4 million for the delay in providing its interim reports for Q1, 2023.
Other fines include Fidelity Bank, GTCO, and Wema Bank paying N2.7 million, N1.4 million, and N1.9 million, respectively. Access Holdings was fined N2 million, while Jaiz Bank, Ecobank, and John Holt faced penalties of N600,000, N3.2 million, and N3.2 million, respectively.
PZ Cussons incurred a fine of N4.8 million, Notore Chemical paid N500,000, and GSK, which recently announced its withdrawal from the Nigerian market, faced a N1.3 million fine for failing to promptly file its 2022 financial results.
Other companies sanctioned for tardy submission of their 2022 audited accounts include Industrial Medical and Gases Nigeria (N1.2 million), Juli Plc (N120,000), and NPF Microfinance Bank (N1.8 million).
Also, Daar Communications was slapped with a N1.7 million fine, Champion Breweries and Abbey Mortgage Bank Plc were penalized N1.6 million and N1.4 million, respectively. Regency Alliance Insurance and Thomas Wyatt Nigeria also incurred fines of N1.4 million and N4.9 million, respectively, for the same offense.
The NGX also imposed significant fines on Presco Plc (N24.8 million), Ardova (N18.6 million), and Universal Insurance Plc (N12.4 million) for violating filing regulations. Conoil was fined N7.9 million for failing to meet the stipulated reporting deadline, while Caverton Offshore Support Group paid N5.7 million as a penalty for the same offense.
Notably, telecommunications services firm Briclinks Africa Plc was also fined N590,000 during this period.
David Adonri, Vice-chairman of Highcap Securities, emphasized the importance of these fines in upholding the market’s integrity.
He noted that many of these penalties stem from corporate disclosure issues and highlighted that the capital market relies on timely and accurate information from listed companies.
Adonri added that companies anticipating difficulties in meeting their disclosure obligations can formally request additional time from the exchange.
Access Bank, Others Collect N154 Billion in Electronic Banking Fees in H1’23, a 16.7% YoY Surge
In the first half of 2023, customers of Nigeria’s top nine commercial banks paid a whopping N154 billion in fees for utilizing electronic banking services, reflecting a robust 16.7% year-on-year increase compared to H1’22’s N131.97 billion.
The data, extracted from the financial statements of these banks, underscores the escalating trend of Nigerians embracing electronic payment channels.
Leading the pack in revenue generation from these fees is Access Bank, amassing N43.9 billion, followed by United Bank for Africa Plc (N51.07 billion), Zenith Bank (N22.27 billion), Guaranty Trust Bank (N21.2 billion), and others like Stanbic IBTC (N2.14 billion), First City Monument Bank (N7.4 billion), Unity Bank (N1.96 billion), Fidelity Bank (N1.85 billion), and Wema Bank (N3.13 billion).
Electronic banking services encompass a gamut of options, including internet banking, mobile banking, ATMs, and Point of Sale (PoS) systems.
Recent data from the Nigerian Interbank Settlement System (NIBSS) for Q1’23 indicates a substantial surge in electronic transactions.
Transaction volume increased by 209% YoY to 4.7 billion, and transaction value grew by 48% YoY to N137.52 trillion.
The nine banks collectively raked in N66.7 billion in account maintenance fees and commissions during H1’23, reflecting a 14.7% YoY rise.
Zenith Bank led this category with N21.02 billion, trailed by Access Bank (N13.36 billion), Guaranty Trust Bank (N10.5 billion), and United Bank of Africa (N9.6 billion).
Overall, the banks’ cumulative net fees and commission income registered a substantial 20.7% YoY growth, reaching N448.47 billion in H1’23 from N371.43 billion in H1’22.
Access Holdings Posts 52.6% Profit for the First Half of the Year
Parent Company of Access Bank Celebrates Remarkable Financial Performance in H1’23
Access Holdings Plc, the parent company of Access Bank, has reported a 58.9 percent surge in gross revenue to N940.3 billion for the first half of 2023.
The financial services giant also recorded remarkable growth in Profit Before Tax (PBT) and Profit After Tax (PAT) at 71.4 percent and 52.6 percent, respectively, culminating in N167.6 billion for PBT and N135.4 billion for PAT during the same period.
These financial milestones were unveiled as part of Access Holdings’ Audited Consolidated and Separate Financial Statements for the period concluding on June 30, 2023.
The driving force behind this unprecedented growth can be attributed to a potent combination of factors. A 63.0 percent growth in interest income and a 51.9 percent increase in non-interest income fueled the surge in gross revenue.
Access Holdings also witnessed a 35 percent year-to-date growth in customer deposits, capping the first half of 2023 at an impressive N12.5 trillion. This remarkable achievement encompassed all business segments, reinforcing the Group’s status as Nigeria’s largest financial institution by total assets.
The company’s total assets grew by 39.0 percent year-on-year to N20.9 trillion while shareholders’ funds surged by 40.6 percent to N1.7 trillion.
These astounding figures underline the Group’s ability to generate value from a diversified business portfolio, spanning banking, asset management, and payment services.
Herbert Wigwe, the Group Chief Executive Officer of Access Holdings Plc, commented on the company’s positive performance, saying, “Our growth plans for the African continent remain firm and clear, driven by the strong long-term growth prospects and trade opportunities seen across many of the countries.”
He went on to emphasize the company’s commitment to its 5-year cyclical strategy, stating, “Our primary objective remains to transform Access Holdings Plc into a leading financial and ecosystem player, fostering opportunities for shared prosperity among all stakeholders.”
Central Bank of Nigeria Postpones 293rd Monetary Policy Committee Meeting
The Central Bank of Nigeria (CBN) has announced the postponement of its 293rd Monetary Policy Committee (MPC) meeting, originally scheduled for September 25th and 26th, 2023.
Dr. Isa AbdulMumin, the bank’s Director of Corporate Communications, released a statement on Thursday confirming the decision.
In the statement, Dr. AbdulMumin stated, “The Monetary Policy Committee of the Central Bank of Nigeria has deferred its 293rd meeting, which was initially planned for Monday and Tuesday, September 25th and 26th, 2023, respectively. A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public.”
While the CBN did not provide an official reason for the postponement, some industry experts suggest it may be related to the pending approvals for the newly appointed governor and deputy governors of the bank.
President Bola Tinubu recently nominated Yemi Cardoso as the potential head of the CBN. Additionally, Tinubu has endorsed the nominations of four new deputy governors for the apex bank, who are expected to serve for an initial term of five years, pending confirmation by the Senate.
The nominated deputy governors are Emem Usoro, Muhammad Abdullahi-Dattijo, Philip Ikeazor, and Bala Bello. However, the appointment of the CBN governor is contingent upon Senate confirmation, which is currently on a yearly recess.
The CBN assures stakeholders and the public that the rescheduled MPC meeting date will be communicated promptly as soon as it is confirmed.
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