Banking Sector

Union Bank Faces N112M Penalty for Fraudulent Property Sale, Lagos High Court Rules

Published

1 month ago

August 12, 2024

The Lagos High Court has ordered Union Bank Plc to pay N112,050,000 in damages for the wrongful sale of a prime property located at No. 6, Moore Road, Ikoyi, Lagos.

The ruling, delivered by Justice I.O. Harrison, found that the bank sold the property at a grossly undervalued price, leading to significant financial loss for the claimants.

The case, which has been ongoing since 1999, was brought by Mrs. Olubunmi Ogunde, Yewande Ogunde, and other members of the late property owner’s estate.

They accused Union Bank of bad faith in the sale of their late relative’s estate, which included eight four-bedroom flats, a penthouse, a ten-bedroom family house, and a three-story building with three-bedroom flats, all situated on a 2.2-acre plot in the affluent Ikoyi area.

The controversy stemmed from a loan of N4 million that the late property owner had taken from Union Bank.

Using the loan, he developed the property, which later became the subject of the legal dispute following his death.

The claimants argued that due to internal disputes among the estate’s beneficiaries, the loan was not serviced on time, prompting the bank to sell the property.

However, the claimants maintained that the property was sold at a grossly undervalued price of N60 million, far below its market value.

They accused Union Bank of conducting the sale in bad faith and urged the court to award damages based on the true value of the property.

Union Bank, represented by Priscilla Esede, contended that it had followed due process in recovering the debt.

The bank claimed that it had entrusted the sale of the property to a law firm, which valued it at N60 million—a figure they argued was fair at the time.

The property was eventually sold to Mr. Cletus Ibeto and others for the same amount.

In delivering her judgment, Justice Harrison rejected Union Bank’s defense, citing market research surveys and evidence provided by the claimants that showed the property’s true value was N112,050,000.

The court found that the bank’s actions in selling the property at such a low price amounted to fraud.

“The sale of the property at a price that is so low is evidence of fraud,” the judge stated. She went on to declare that the sale was conducted in bad faith and ordered Union Bank to pay the difference between the sale price and the property’s market value—an amount totaling N112,050,000.

The court also ruled that the bank must pay interest on the judgment sum from 1998 until the date of the judgment, at the prevailing Central Bank of Nigeria (CBN) rate, and 10% per annum thereafter until the debt is fully paid.

The decision represents a significant victory for the claimants and sets a precedent for other cases involving the sale of mortgaged properties in Nigeria.

Union Bank, which has the option to appeal the ruling, has yet to comment on the judgment.

The judgment underscores the importance of transparency and fairness in financial transactions, particularly in cases involving the sale of mortgaged properties.

It also serves as a reminder to financial institutions of the legal repercussions of failing to uphold their fiduciary responsibilities.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Appointments

Keystone Bank Receives New Board Chairman, Directors From CBN

Published

12 hours ago

September 18, 2024

Bassey Marshall

It is the dawn of a new era for Keystone Bank, a top player in the Nigerian banking sector.

As part of a broader strategy to ensure sustained growth for Keystone Bank, the Central Bank of Nigeria (CBN) has approved a new chairman and board of directors for the financial institution.

The new board consists of a new board chairman, five non-executive directors, and two new directors, all carefully selected to take the bank to new heights.

The apex bank confirmed the latest development via a statement on Wednesday.

Steering the ship of leadership is Lady Ada Chukwudozie, as the new board chairman.

Lady Ada Chukwudozie, brings with her a truckload of experience.

A prominent figure in Nigeria’s corporate sector, Ada has nearly three decades of experience in business strategy, management, and administration.

Her expertise cuts across multiple industries, including De-Endy Industrial Company Limited, Dozzy Group, the Manufacturers Association of Nigeria, and Vogue Afrique Magazine.

Indeed, to whom much is given, much is expected.

With her extensive background and experience, Ada will now shoulder the responsibility of guiding the bank toward achieving its long-term goals.

The good news is that she is not alone. Joining her on the board are five non-executive directors, each bringing their unique skills to the table.

The five non-executive directors are Abdul-Rahman Esene, Mrs. Fola Akande, Akintola Ayodeji Olusoji, Obijiaku Samuel, and Senator Farouk Bello.

Together, they will play a critical role in shaping the future of the bank.

Furthermore, two new executive directors, Ladi Oluwole and Abubakar Usman Bello were also confirmed by the CBN.

Meanwhile, Keystone Bank’s Managing Director and CEO, Hassan Imam, bragged about his confidence in the new team.

To him, he was certain they would drive the bank’s growth and ensure reliable service for customers.

Imam noted that their wealth of experience would play a crucial role in the bank’s continued repositioning and growth.

His words: “We are pleased to welcome the new chairman, non-executive directors, and executive directors to the board of Keystone Bank.

We are confident that their extensive experience will be invaluable as we continue to reposition the bank to seize emerging economic opportunities while maintaining strong corporate governance and providing our customers with a secure and reliable banking experience,” Imam concluded.

Recall that in January, the CBN dissolved the board and management of Union Bank, Keystone Bank, and Polaris Bank.

Banking Sector

Zenith Bank Extends Public Offer and Rights Issue by Two Weeks

Published

1 week ago

September 10, 2024

Investors King

Zenith Bank Plc on Monday announced that it has obtained regulatory approval to extend its public offer and rights issue by two weeks.

In a statement released via the Nigerian Exchange Limited (NGX), the leading financial institution said its offers for both existing shareholders and new investors have been extended to September 23, 2024, from the initial closing date of September 9.

The bank attributed the extension to the nationwide protest that began on August 1, the same day the offers were opened.

Zenith Bank stated that the extension will provide shareholders with more opportunities to take advantage of the rights issue and allow the general public ample time to subscribe to the public offers.

Banking Sector

Unity Bank Projects N27b In Q4 Earnings, Targets N4b Profit

Published

1 week ago

September 10, 2024

Investors King

Unity Bank Plc has projected gross earnings of N27 billion and a Profit After Tax of N4 billion in Q4, 2024, in its latest earnings forecast released to the Nigerian Exchange Group.

Although the projected gross earnings represent a marginal increase from the N26 billion projected for Q3 2024, the lender continues to maintain a profitable outlook, with pre-tax profit expected at N4.2 billion.

An analysis of the earnings forecast shows that the lender also expects interest income to rise from N23 billion to N24.5 billion, with net revenue expected to rise marginally by 1.0% to N7.2 billion within the quarter compared to N6.5 billion in Q3, 2024.

Net operating income is projected at N12 billion, while cash flow from financing activities is projected to rise to N481.4 billion from N353.6 billion, a 1.3% projected increase on a quarter-on-quarter basis. This projected growth in cash flow from financing activities continues to reflect the lender’s growing liquidity position which is essential for sustained business operations.

The lender said it expects to cover the milestones with a consistent optimistic outlook in its projection, barring any significant changes in the operating environment, under which the assumptions were made.

The lender noted that it will continue to deliver top-notch customer-centric products and services, especially in the digital lending space following the roll-out of enhanced platforms and channels for superlative customer experiences.

Analysts are of the view that the Q4 forecast reflects a steady growth trajectory on the back of key performance indicators and strategic repositioning to hedge the challenging market conditions.