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CBN, SEC, FRC investigate Stanbic IBTC
In from Success Allantee …
Stanbic IBTC Holdings Plc, the holding company for Stanbic IBTC Bank Plc has fallen into troubled waters, as Financial services regulators in the country have started investigations into its financials and operations.
Financial Reporting Council (FRC), Central Bank of Nigeria and Securities and Exchange Commission (SEC) are investigating the financial reports and corporate governance issues in the holding company.
It would be recalled that Ripples investigations had last week revealed that Stanbic IBTC Bank Plc is being investigated by the FRC for allegedly engaging in unapproved transactions conducted by the bank with its foreign technical partners in the last four years.
Investigation by Ripples revealed that some shareholders had expressed concern over the rising level of infractions committed by the bank but the management were said to have maintained studied silence on the matter.
But SEC on Tuesday withdrew the earlier approval granted to Stanbic IBTC Holdings to raise new equity funds. The apex capital market regulator said it was suspending the proposed rights issue of N20 billion by Stanbic IBTC Holdings Plc until “proper resolution of issues raised”.
SEC said the rights issue was suspended because of letters received from the National Office for Technology Acquisition and Promotion (NOTAP), the Central Bank of Nigeria (CBN) and the Financial Reporting Council (FRC).
SEC confirmed that it had received notification that FRC has launched investigation into the financial statements of Stanbic IBTC Holdings Plc.
“In view of these, the rights issue exercise has been suspended until proper resolution of issues raised,” SEC stated.
In a statement on Tuesday, the management of Stanbic IBTC Holdings said it has taken note of the suspension of the rights, pending the resolution of enquiries from certain relevant regulatory bodies.
“The management of Stanbic IBTC will continue to engage with the relevant regulatory bodies to ensure that these enquiries are addressed in a timeous manner. Stanbic IBTC Bank Plc, the banking subsidiary of Stanbic IBTC Holdings Plc, remains well capitalised and has sufficient liquidity,” Stanbic IBTC Holdings stated.
Stanbic IBTC Holdings recently distributed N9 billion as interim dividend. Shareholders on the register of the company as at July 31, 2015 received a dividend per share of 90 kobo. The dividend became payable on August 28, 2015.
Read also: Stanbic IBTC under investigation for alleged infractions
The dividend recommendation was part of the first-half results of the company. The six-month accounts and report for the period ended June 30, 2015 showed that gross earnings rose to N68.30 billion in first half 2015 as against N61.72 billion in comparable period of 2014. Profit before tax however dropped by 52 per cent from N19.95 billion to N9.54 billion.
Profit after tax also declined by 40 per cent to N9.70 billion in 2015 as against N16.18 billion in comparable period of 2014. Earnings per share dropped from N1.48 in first half of 2014 to 80 kobo in first-half of 2015.
The company’s balance sheet meanwhile emerged stronger with 22 per cent growth in customers’ deposits within the six-month period. Total assets closed June 30, 2015 at N1.03 trillion as against N944.54 billion recorded by the year ended December 31, 2014, representing an increase of nine per cent.
Customers’ deposits rose by 22 per cent from N494.94 billion in December 2014 to N601.73 billion in June 2015. Total liabilities rose by 10 per cent from N830.27 billion to N911.17 billion.
Shareholders’ funds also increased by eight per cent from N110.05 billion to N118.76 billion.
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