AFS: Three commercial banks blame regulatory approval for late submission
Three listed commercial banks in the country risk being sanctioned by the Nigerian Stock Exchange (NSE) for late submission of their 2016 Annual Financial Statement (AFS), but the affected financial institutions have linked the action to the failure of regulatory approval by the Central Bank of Nigeria (CBN).
The affected Deposit Money Banks (DMBs) that exceeded the stipulated three months given to listed companies to submit their Audited AFS for the year ended December 31, 2016, which expired on March 31, 2017, include Ecobank Transnational Incorporated (ETI), Diamond Bank and First Bank of Nigeria (FBN) Holdings.
Although, the aforementioned lenders in a statement to the Bourse blamed the delay on account of awaiting regulatory approval the NSE had explained that companies that failed to file their AFS by the due date, have violated Rule 1.1.4, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange, which requires listed companies to file their AFS “with The Exchange not later than 90 calendar days after the relevant year end.”
For instance, Diamond Bank in a statement to market stakeholders said, “We have become aware that due to the stage of review of our accounts by the Central Bank of Nigeria (CBN), it is likely that this will be concluded on time for us to comply with the NSE, and other regulatory rules guiding the release of annual audited financial statements.
“We have therefore sought the approval of the NSE and the Securities and Exchange Commission (SEC) for a delayed release. We are optimistic that the accounts will be made available on or before April 30, 2017.”
On its part, ETI said the delay was occasioned by awaiting regulatory approval for the release of results for the subsidiary of Ecobank Nigeria and was not in any way the fault of the CBN.
“The delay of the regulatory approval is due to the late submission of the year ending 2016 Financial Statements by Ecobank Nigeria. This submission to the CBN was made on April 3, 2017. We apologise to the regulatory bodies that this was not clear in the original announcement.”
The Company Secretary, FBN Holdings Plc, Mr. Tijjani Borodo said the group had forwarded its account to CBN for approval Borodo in a statement said “This is to inform our stakeholders that in line with the provisions of Rule 19.2 of Part 2 (Issuer’s Rules) of the NSE Rule Book (2015), FBN Holdings Plc.’s 2016 Audited Financial Statements (Accounts) was considered and duly approved by the Board of Directors at its meeting held on the 6th April, 2017 and same has been forwarded to the CBN for approval.
“In view of the foregoing, our closed period which started on March 23, 2017 will remain till the approval of the CBN is received and the Accounts are subsequently filed with the Nigerian Stock Exchange.”
