FirstBank, Union Bank risk sanctions over delayed 2022 financial reports

First Bank of Nigeria, Union Bank and Sterling Bank risked being sanctioned by the regulator following their inability to release their audited financial statements for the period ending December 31, 2022.

The companies, like other publicly-listed firms, are mandated to submit their annual financial statements on or before March 31, 2023.

However, the financial institutions, on Saturday, released separate statements informing investors that they won’t be meeting the stipulated deadline set by the capital market regulator, the Securities and Exchange Commission (SEC).

Explaining the reason for the delay, First Bank said the final audit of one of its subsidiaries has not been concluded and approval from the regulator is yet to be received.

First Bank said the financial statements for last year will be submitted within the next 30 days, “This delay is due to the pending conclusion of the final audit of a major subsidiary and the requisite approval of its primary regulator.

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“We hope that this would be concluded very soon to enable FBNH to consolidate the audited financial statements of the Group and obtain the approval of our regulator within the next 30 (thirty) days.”

Also, Union Bank said it hasn’t received regulatory approvals from the Central Bank of Nigeria (CBN). The firm didn’t state when it will publish the earnings report.

“Please be informed that the Audited Financial Statements for the period ended 31st December 2022 for Union Bank of Nigeria Plc (“the Bank”) were approved by the Board of Directors on 24th February 2023 and other requisite regulatory approvals are being processed.

“In view of the foregoing, the Bank will immediately publish its Audited Financial Statements for the financial year ended 31st December 2022 upon receipt of the regulatory approvals which may be after the NGX Limited’s regulatory filing date of 31st March 2023,” Union Bank said.

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Similarly, Sterling Bank in a statement jointly signed by Demola Adesina, public relations and Ibidapo Martins, Marketing and Communications, said it will be unable to release the financials before the deadline

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The inability of the companies to release the financials before the deadline could result in regulatory clampdown, as the SEC fines companies that fail to submit their earnings within the stipulated period.

According to the rules, notwithstanding that a company takes the required steps during the cure periods or later complies with the provisions of the rules, any company that defaults in filing its accounts within the stipulated periods shall be liable to pay the applicable penalties, except the affected company had received waiver or extension of time by the Exchange.

It would be recalled that the SEC fined Ecobank, PZ Cussons and John Holt N3.2 million, N4.8 million and N3.2 million respectively for late publications of their financial reports.