Ghana’s Sovereign Debt Default, CBN’s Scrutiny Delay Tier-1 Banks 2022 Audited Results

Kayode Tokede

Indications have emerged that Ghana’s sovereign debt default, which may have multiplying effect on some banks’ results and the Central Bank of Nigeria’s (CBN) scrutiny of some Tier-1 banks was delaying the release of audited result and accounts for period ended December 31, 2022.

Access Holdings Plc, Zenith Bank Plc, United Bank for Africa Plc (UBA), Guaranty Trust Holding Company Plc (GTCO), Ecoban Transnational Incorporate (ETI) and FBN Holdings Plc, have not submitted audited financial statement for period ended December 31, 2022, to the Nigerian Exchange Limited (NGX).
Post-listing rules at the NGX require quoted companies to submit their audited results, not later than 90 calendar days, or three months, after the expiration of the period.

The rules also require quoted companies to submit an interim report not later than 30 calendar days after the end of the relevant period.

Access Holdings in a report on the Exchange signed by its company secretary, Sunday Ekwochi, explained that the delay in the Holdings 2022 audited results was occasioned by the need to ascertain the impact of Ghana’s sovereign debt default on the financial statements of Access Bank Ghana.
He added that the Corporation had obtained the approval of the Securities and Exchange Commission for an extension of time till March 31, 2023 for it to file the audited financial statements.

“We hope to resolve the issue soon to enable us to submit the results to the Central Bank of Nigeria and obtain its approval to public same,” he stated.
Zenith Bank also in a report signed by its company secretary, Michael Otu, explained that in the view of the need for the bank to finalise all outstanding issues relating to the component audit of the subsidiary companies, its results would be submitted to the Exchange on or before March 31, 2023 after receipt of the approval of the CBN.

In addition, the Group Company Secretary/Legal Counsel, UBA, Bili Odum in a signed notice stated that, “following the approval of UBA’s FY2022 Audited Financial Statements (AFS) by the Board of Directors, the AFS has been submitted to our primary regulators – CBN and is still undergoing the review and approval process of the CBN.

“Consequently, the bank is yet to submit the Audited Financial Statements to the NGX. Please be informed that the AFS will be published once we have received approval from the CBN, which we anticipate receiving on or before Friday, March 31, 2023.”
So far only six Tier-2 banks have released unaudited result and accounts to investing public with Unity bank Plc posting decline in profit before tax.

The six banks generated a total of N225.9 billion profit before tax in 2022, representing an increase of 44 per cent from N156.97billion in 2021.

Unity Bank reported drop in profit before tax to N1.47billion in 2022 from N3.33billion reported in 2022. The bank’s 56 per cent drop in profit before tax caused 28 per cent increase in interest and similar expenses, among others.

FCMB Group announced 63.3per cent increase in profit before tax to N37.11billion in 2022 from N22.72billion in 2022, while Stanbic IBTC Holdings announced N100.6billion profit before tax in 2022 unaudited financial statement from N66billion in 2021.
In addition, Sterling Bank reported 38.6 per cent increase in profit before tax to N20.07 billion and Fidelity bank announced N52.06 billion in 2022, a growth of 37 per cent from N38.07billion in 2021, and Wema bank announced N14.59billion profit before tax in 2022, an increase of 18 per cent from N12.38billion in 2021.

Other key sectors on the Exchange such as the cement manufacturing, petroleum marketing company and Fast-moving consumer goods (FMCG) have reported audited statement and have announced dividend payout to shareholders.

Dangote Cement, MTN Nigeria Communication Plc, Nestle Nigeria Plc, Nigerian Breweries Plc, BUA Cement Plc, Lafarge Africa Plc are few capitalised companies on the NGX that have declared 2022 audited result and proposed dividend payout to shareholders.

Commenting, the vice president, Highcap Securities Limited, Mr. David Adnori said the delayed in Tier-1 filing of 2022 audited results called for concern, stressing that the prolong scrutiny by CBN was worrisome to investing public.