8 banks, others fined N125m for late filing of 2022, H1 2023 financial reports

Eight commercial banks in the country have been fined a total of N125 million for late filing of their Half-Year 2023 and end-of-year 2022 financial statements before the Nigeria Exchange (NGX).

The affected banks include; Unity Bank, FBN Holdings, Access Holdings, Fidelity Bank, Jaiz Bank, Wema Bank, Guaranty Trust Holdings Plc and Ecobank Transnational Incorporated.

However, others like StanbicIBTC, UBA and Zenith earlier reported to have delayed in the documentation, escaped the sanction after completing the procedure late.

According to the NGX’s post-listing rules, quoted companies are required to submit their audited results, not later than 90 calendar days, or three months, after the expiration of the period.

The rules also require quoted companies to submit interim reports not later than 30 calendar days after the end of the relevant period.

Based on the latest X – Compliance Report issued by the regulatory arm of the NGX, FBN Holdings was fined for delay in submitting its 2022 financial results and its quarter one report for 2023. The lender paid N6.3m for the former offence and paid N3.3m for the latter.

Meanwhile, other quoted firms on the exchange which floured the regulation included; John Holt, PZ Cussons, Notore Chemical, Glaxo SmithKline Consumer Nigeria, Industrial Medical and Gases Nigeria and Juli Plc

For failing to submit its 2022 results on time, Unity Bank paid N6.4m and another N3.4m for the delay in submitting its interim reports for Q1, 2023.

The report showed that Fidelity Bank, GTCO and Wema Bank paid N2.7m, N1.4m, and N1.9m, respectively as fines.

While Access Holdings paid N2m, Jaiz Bank, Ecobank, and John Holt paid N600,000,  N3.2m and N3.2m, respectively as penalties.

The NGX fined PZ Cussons N4.8m, Notore Chemical paid N500,000 and GSK, which announced the closure of its operations in Nigeria also paid a fine of N1.3m for failing to file its 2022 financial results as and when due.

Others also sanctioned for delay in filing their 2022 audited accounts include Industrial Medical and Gases Nigeria, which paid a fine of N1.2m, Juli Plc paid a penalty of N120,000 and NPF Microfinance Bank paid a fine of N1.8m.The regulator also sanctioned Daar Communications, paying N1.7m fine, Champion Breweries and Abbey Mortgage Bank Plc were also fined N1.6m and N1.4m, respectively.

Regency Alliance Insurance and Thomas Wyatt Nigeria also paid N1.4m and N4.9m fines, respectively, for the same offence. Also, Presco Plc (N24.8m); Ardova (N18.6m) and Universal Insurance Plc (N12.4m) for flouting the filing regulations.

Conoil was also fined N7.9m for not filing its results within the stipulated period, while Caverton Offshore Support Group paid N5.7m as a penalty for the same offence.

Telecommunications services firm, Briclinks Africa Plc also paid N590,000  fine during this period.

It would be recalled that, last week, Stanbic IBTC Holdings Plc blamed the Central Bank of Nigeria (CBN) for the delay in filing its half year (H1) financial results at the NGX.

However, this is not the first time the bank has delayed its report to the CBN, as findings also showed that its 2022 annual report was only filed before the regulatory bank in March 2023.

As many as seven commercial banks operating in the country, also delayed filing 2022 financial year report to the CBN.

 The H1 report was meant to have been filed before the CBN in July, latest, however, 23 days after the deadline for filing, the StanbicIBTC is yet to comply with the regulatory bank’s directive.

Meanwhile, in a notice to shareholders and customers, explaining the delay, the commercial bank blamed the CBN for the situation, adding that the latter is yet to approve the report it had filed to it.

According to StanbicIBTC, if the CBN approves the report, it is then made public at the NGX.

“This delay is occasioned by the fact that we are currently seeking the approval of our primary regulator, the Central Bank of Nigeria, for the half year audited financial statements, following which financial statements will then be released to the market,” the  bank said.

According to financial watchers, the trend by commercial banks operating in the country to continuously blame the CBN for delays in filing their financial reports at the NGX has become worrying.

As part of post-listing requirements, listed companies are mandated to file their financial results at appropriate dates and when delayed to notify the NGX of the same.

However, with the reluctance by the CBN to wield the big stick, culprits are given an escape route, as the NGX will instead hesitate in sanctioning the defaulting the banks.

“What usually happens is that some of these banks deliberately file their financial reports too late and expect the CBN to do a rush job of verification and auditing. They then turn to the NGX to blame the CBN for being the ones delaying the report,” Mr Tony Okere, a Lagos-based financial expert told Oracle Today newspaper.

Meanwhile, two other banks also delayed filing their financial statements to the NGX.

They are the United Bank for Africa Plc, Zenith Bank Plc.

“The delay is to enable the bank to attend to some outstanding post audit issues in the course of approval of the financial statements,” Zenith Bank stated.

On its part, UBA failed to give a reason for the delay, merely stating that insiders and parties close to it were still barred from trading in its shares as its closed period is still in place.

“All insiders of the bank are hereby reminded that the trading window for dealing in the bank’s shares will remain closed to them and their connected persons until 24 hours have elapsed after the release of the audited financial statements,” the bank said.