FBN Holdings Plc (FBNH), which is the parent company of First Bank of Nigeria has delayed filing of its audited results for the 2021 financial year to at least April 30, 2022, according to a statement by the bank.
First Bank is the only major bank yet to file its Audited Financial Statements for 2021 which is beginning to worry shareholders, sources tell MoneyCentral.
“Firms that have failed to file audited financial statements for 2021 as of today include Unity Bank, Japaul and Notore. These are firms that FBN Holdings should not be in company of,” a market source told MoneyCentral.
FBN Holdings was supposed to publish its Audited Financial Statements (AFS) for 2021 by March 31, 2022, as required under the Rules of the Nigeria Exchange Group (NGX).
First Bank is the Least Efficient Lender as Cost to Income Ratio Hits 73.5%
“The Company’s inability to publish was due to some delays being experienced in finalizing the statutory audit of the financial statement of one of the largest subsidiaries of FBNH for the year ended December 31, 2021,” FBN Holdings said in the statement.
“The Company hopes to receive the AFS in due course to aid the finanlization of the Group accounts and its submission to the Central Bank of Nigeria (CBN) for regulatory approval. We hope to conclude this with a view to publish on the NGX’s portal by April 30, 2022.”
FBN Holdings shares are up 3.51 year to date, but down -8.53 percent below its 52-week high of N12.90.
Investors would want to know about improvements in the bank after the majority stake taken by billionaire Femi Otedola in the bank.
FBN Holding Plc is reeling from spiraling operating expenses, which means it is less efficient and profitable, and the situation could worsen dramatically over the next five years.
The failure of management and board of directors to cut costs has significantly undermined return on equity and ballooned the cost to income ratio.
For instance, FBNH’s cost to income ratio ex provisions of 73.5 percent as of nine months of 2021 was the highest of the tier 1 banks, according CSL Stockbrokers.