FinBank defy Regulators, delay in declaration of result
Category: Capital Market
First Inland Bank Plc (FinBank) has defied Regulatory Authorities in the NationÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s Capital Market (NCM) by declaring its results behind schedule.
FinBank delayed the releasing of its year 2008 result for almost a year before doing same on March 04 2009.
The BankÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s year Ending is April 2008 and not until March 04 2009 that it declared Audited result for year 2008 on the Floors of the Nigerian Stock Exchange (NSE) in LagosNigeria. The last time the Bank released Audited result was in year 2007.
This is coming on the heels of earlier report on ProshareÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s website that FinBank and some other companies quoted on the Floors of NSE has gone against the Regulatory Authorities by not releasing their results on the Floors of the Exchange for sometime now.
Prior to this time, Professor (Mrs.) Ndi Okereke-Onyiuke, Director General/Group Chief Executive Officer (DG/GCEO) of the Stock Exchange has advised companies to always release their results in order to enlightening the Regulators, investors and other Capital Market Stakeholders on their activities as quoted firms on the NSE.
In the same vein, as earlier reported by Proshare NI, FinBank has been delaying the listing of its January 2008 hybrid offer about eight months after Apex Capital Market Regulatory Institution; Securities and Exchange Commission (SEC) cleared the offer.
Regulation stipulates that companies are supposed to start the dispatch of share certificates to investors after an offer 15 days after clearance from SEC; thereafter apply to the Nigerian Stock Exchange (NSE) to list its shares.
However, Turnover of the Bank increased from N27. 47 billion in year
2007 to N37.98 billion in year 2008 indicating an increase of 38.28 percent (38.28%) in the review period.
Profit After tax (PAT) of the Bank depreciated by 60.44 percent (60.44%) from N2.715 billion in year 2007 to N1.074 billion in year 2008.
FinBankÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s Net Profit Margin has reduced drastically from 9.88 in year 2007 to 2.82 in year 2008 showing a depreciation of 71.39 percent (71.39%) in the review period.
Last year the Bank declared its result in October 2007; which was supposed to be declared in April 2007, where itÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s Turnover increased by 816.66 percent (816.66%) and PAT was 2.715 billion after regaining from its loss position of N10.35 billion.
Proshare Analyst Services affirms that the above result signifies that year 2007 was better for bank, following a decline of 60.44% in PAT in year 2008.
The Proshare analysis further affirmed that after the declaration of FinBankÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s result, its share price declined by 1.7% from N 2.35 Kobo to N 2.31 Kobo at the close of the day on March 04 2009.