Investors and stakeholders of First City Monument Bank (FCMB) are beginning to express concerns over the consistent postponement of its financial results, with the deferment of the quarter three financial results of 2022 being the final straw.
More intriguing is the fact that the bank had offered almost consistent reasons, at least, in the last past five years.
Companies listed on the local bourse are required to file in their results not more than 30 days after the end of the period under review.
The concerns in the financial market over the expected failure to release the unaudited result by October 30, 2022 stem from the fact that investors say it affects quick decisions on their holdings in the stock.
On Friday, October 14, 2022, the bank informed the Nigerian Exchange Limited (NGX) that “it will not be able to file its nine months (Q3 2022) results for the period ended 30, September 2022 by the due date of 30, October, 2022.”
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The notice which was signed by the Company Secretary, Mrs. Olufunmilayo Adedibu claimed that “the delay is due to the audit of the Company’s largest subsidiary, First City Monument Bank Limited (the Bank) for the period ended 30 September, which accounts for 68 per cent of its Group’s profitability and which results would have material impact on the Group’s consolidated accounts.
The Consolidated third quarter 2022 result of the Group will be published on or before 29 November 2022.”
But Victor Ogiemwonyi, financial analyst, speaking generally on the likely impact of such development, says the postponement is capable of putting investors in a dilemma, particularly, if the results turn out to be bad.
“That is not good for investors, because they are unable to make any quick decision on their holdings in the Stock.
John Agbo, Lagos based stockbroker and analyst sees the development as portending issues in an organization in the habit of serial postponements.
According to Agbo, “It means there are issues. The continued extension might mean that the information that forms the content of the report are always not ready as at when due or the resources at the disposal of the company as at the time the report is due are incompetent and their report cannot be relied on.