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New acquisitions delay FBN’s 2013 account submission

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New acquisitions made by FBN Holdings Plc during the 2013 financial year is presently frustrating timely submission of its year end reports and accounts for December 31, 2013 to the Nigerian Stock Exchange, NSE.

Usually, quoted companies are required to submit their year end financial statement to the NSE latest three months after the end of the financial year.

FBN had late last year concluded transaction for the acquisition of West African banking assets of International Commercial Bank (ICB) Financial Group Holdings in Ghana, Guinea, Gambia and Sierra Leone.

It had also said at that time that it hoped that Senegal’s transaction will also be completed by February 2014 on the receipt of regulatory approval from Banque Centrale des Etats de l’Afrique de l’Quest (BCEAO).

In a notice to the NSE, the bank said that difficulty in finalising the accounts of the newly acquired West African subsidiaries is the cause of the delay being experienced in submission of its 2013 result.

According to the bank, the non-finalisation of the subsidiaries accounts is delaying conclusion of the Group audit.

It, however, said that the result would be ready for submission by April 15, 2014 when it might have finished harmonisation of the various accounts.

“This is to enable the completion of the statutory review of the accounts of First Bank of Nigeria Limited and FBN Holdings Plc by the Central Bank of Nigeria,” it said.

It will be recalled that the bank had experienced similar challenges in submission of its third quarter result for September, 2013, which was later released on December 31, 2013.

Explaining the delay then, the chairman, Mallam Bello Maccido, had attributed it to the changing structures of the Group.

He added that the nine months result could not be released until it was approved by the Central Bank of Nigeria, CBN.

“The holding company and the subsidiaries have a common year end that ends by December 2013.  So as a holding company, our primary source of revenue is the dividend that comes from the individual subsidiaries, which we receive and in turn declare to our shareholders.

The reason for the nine months audit is to ensure that all the subsidiaries get their accounts audited, get the necessary approvals and pass our dividend to us before December 3Ist. Dividends to shareholders will be distributed after the approval and publication of the full year 2013 results of FBN Holdings.

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