Diamond Bank Plc says the Central Bank of Nigeria and the Economic and Financial Services Commission have frozen the bank accounts of Cashflowabi Cooperative Society and Cashflowabi Networks Limited for allegedly operating as fund managers without operating licences.
It said the directive to freeze their banks accounts with Diamond Bank came on the heels of a court order obtained by the EFCC in November 2012.
In a statement on Tuesday, Diamond Bank made the clarification following complaints that some of the fund managers’ customers besieged some of its branches, demanding for their funds.
The customers were said to have protested at some branches of Diamond Bank across the country.
However, Diamond Bank maintained the aggrieved protesters were customers of the fund managers.
The statement read, “It has been brought to the attention of the management of Diamond Bank Plc that some clients of Cashflowabi Cooperative Society and Cashflowabi Networks Limited acting on an SMS broadcast to their respective telephone lines by one Dr. Philemon Gora have besieged some of the bank’s business locations ostensibly to collect cash from the accounts of Cashflowabi at Diamond Bank.
“Following numerous complaints from the clients of Cashflowabi Cooperative Society and Cashflowabi Networks Limited, the CBN in August 2012 directed the bank to stop withdrawals from the accounts of the two companies as they were operating as fund managers without registration and operating licences from the appropriate authorities.”
It further said, “Subsequently, the EFCC obtained an order in November 2012 in suit No: FHC/KD/CS/69/2012 to freeze the accounts of the Cashflowabi companies. Sequel to this, the accounts of Cashflowabi Cooperative Society and Cashflowabi Network Limited domiciled with the Bank were closed in 2014 after a series of garnishee orders and court injunctions by various claimants on the accounts.
Diamond Bank noted that the two fund managers were aware of the closure of their accounts with it.
It added, “The clients of Cashflowabi are not customers of Diamond Bank Plc and therefore have no direct dealing with the bank but seem to be unaware that the SMS broadcast to their telephone lines asking them go to Diamond Bank to cash the cheques issued to them by Cashflowabi is false information constructed to divert attention and deceive as the company has no account or funds at Diamond Bank.”
Flour Mills Posts Strong Half Year Results Despite Headwinds
Flour Mills of Nigeria Plc recorded strong performance in the Half Year (H1) ended September 30, 2020.
In the 2020/21 half-year results released on Tuesday through the Nigerian Stock Exchange, the leading integrated food business and agro-allied Group, grew revenue by 31 percent year-on-year from N270.8 billion posted in the half-year of 2019/20 to N355.1 billion in the period under review with second-quarter growth of 47 percent when compared to last year second quarter.
Similarly, the Group’s profit before tax grew by 60 percent year-on-year from N8.6 billion in H1 2019/20 to N14.6 billion in H1 2020/21 with an impressive 160 percent growth from the second quarter.
The strong performance continues across the board as profit before tax was driven by the agro-allied segment, which realised a profit of N6.3 billion when compared to the loss posted in 2019/20 period. The company said it recorded strong improvement in edible oils and fats, protein and fertiliser businesses after its investments over the years started yielding results.
Profit after tax grew by 68 percent from N5.9 billion achieved in H1 2019/20 to N9.9 billion in the period under review.
According to the company, despite economic uncertainties and headwinds, the Group has continued to show sustained growth in key areas with the agro-allied unit leading with a strong result in edible oils and proteins.
Speaking on the performance, Paul Gbededo, the Managing Director and Chief Executive Officer (CEO) of the company, said “with this result, our business has once again shown its resilience, by following the path of sustainable growth despite the prevailing challenges in both the local and global economy.”
He further stated that “in line with our vision to continue to grow value for our investors, Management will for the remaining part of the financial year continue to concentrate on improving operational effectiveness through accelerated strategies for Group-wide cost optimisation, which will ensure sustainability in the current market climate, while we will continue to invest in growing the business further.”
US Banks Led the Most Fined Financial Institutions in 2020
US Banks Are The Most Penalised Financial Institutions in 2020 Financial Year
Banks in the United States were the most fined financial institutions in 2020, according to the latest report from Finbold.
Finbold, a company that specialises in financial data, said three countries accounted for 97.32 percent of the total fines levied on banks in 2020.
The data revealed that United States banks are the most fined at €9.15 billion. This was followed by Australian banks with a combined €770 million, while banks in Israel came third with €762.97 million.
Also, while the fines are likely to increase before the end of the year, the total fines levied against financial institutions globally stood at €11.61 billion as of October 22nd.
Further breakdown showed Swedish banks came fourth with €456.18 million fines while German banks that incurred a combined €169.01 million fines came fifth.
The report showed Goldman Sachs led the most fined bank with €5.26 billion for various violations of regulatory rules.
Wells Fargo came second with €2.53 billion while Westpac Bank in Australia and Hapoalim emerged third and fourth with €770 million and €762.97 million, respectively.
Other heavily fined lenders include Swedbank from Sweden fined €360 million and Germany’s Deutsche with €126.52 million fine in 2020 so far.
Speaking on banks’ fines, Oliver Scott, Chief Editor, Finbold, said “Notably, the tally of bank fines is likely to increase in the coming years as European and Asian regulators catch up with U.S peers who are considered more aggressive. However, banks are looking for means of minimizing fines. Analysts have been of the opinion that the fines could have been avoided if banks leverage technology through the deployment of perfect software.”
Guinness Nigeria Explains Reason for N12.6 Billion Loss in 2020
Guinness Nigeria Speaks on 2020 Poor Performance
Guinness Nigeria Plc has blamed the challenging business environment amid COVID-19 restrictions that led to the closure of bars, clubs, lounges and restaurants for its 2020 losses.
Mr. Baker Magunda, Managing Director/CEO, Guinness Nigeria, who spoke on the company’s performance in 2020, said the aforementioned represents a major part of the company’s consumption, adding that restriction imposed on gathering impacted the usual demands for celebratory occasions.
He explained that demand was weighed upon by a decline in consumer income, rising unemployment rate due to the shutdown of large corporations, surged in VAT and excise throughout 2020.
According to him, distribution was affected by the ban imposed on inter-state travel despite collaborating with regulatory authorities to minimize the negative impact on the company.
Here is a breakdown of the Guinness Nigeria performance in 2020 Financial Year
Guinness profit plunged by a massive 129.1 percent to -N12.6 billion in the 2020 Financial Year (FY), down from the N5.5 billion profit achieved in 2019 (FY). While the company’s gross profit nosedive by 16.9 percent from N40.13 billion posted in 2019 to N33.33 billion in 2020.
The company decline was broad-based as revenue also declined from N131.5 billion filed in 2019 to N104.4 billion in the 2020 financial year.
Accordingly, administrative cost rose from N9.9 billion in the 2019 financial year to N14.3 billion in 2020. However, the cost of sales moderated by 22 percent from N91.4 billion posted in 2019 to N71.1 billion in 2020.
Finance cost expanded from N2.6 billion in 2019 to N4.5billion in 2020 while finance income declined to N301 million in the year under review, down from N750.9 million in 2019.
Mr. Baker Magunda, said “The last quarter performance of fiscal 2020 was significantly impacted by restrictions due to COVID-19, exacerbating the already challenging economic environment. Closures of on-trade premises (bars, lounges, clubs, and dine-in restaurants), which represents the major part of the consumption occasion for our products and bans on celebratory occasions, impacted sales.
“Demand was also impacted by reduced consumer income, unemployment concerns due to the shutdown of a large number of businesses, and increases of VAT and excise throughout the year.”
Speaking further Magunda said, “Distribution was impacted by the ban of inter-state, and in some cases intra-state travel. Although, Management worked diligently with regulatory authorities to minimize the impact, this hampered our distributors’ ability to restock and have our brands available for purchase.”
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