Zenith Bank delays annual earnings report, risks monetary penalty

Zenith Bank has disclosed that the company is sorting outstanding issues which will delay the release of its 2022 Audited Annual Financial Statements.

On Friday, Ripples Nigeria obtained a corporate document dated February 23, 2023, sent to Zenith Bank’s shareholders and the investing public.

In the corporate document, Zenith Bank said the outstanding issues related to the component audit of the subsidiary companies.

What you need to know

In late January, the board of directors of Zenith Bank had agreed not to release the Fourth Quarter Unaudited Financial Statements on January 30, 2023.

Last month, the firm said it would instead release its full-year Audited Financial Statements on or before March 1, 2023, as it took advantage of the regulation by the capital market authorities, Nigerian Exchange Limited (NGX).

The NGX, in a regulation on January 21, 2022, stated that publicly listed companies on NGX should release their yearly financial statements within 60 days if unabled to provide the fourth quarter earnings report within 30 days after the quarter ends.

Prior to the regulation, the listing rule was for equity firms to submit their quarterly earnings report 30 days after each quarter, with the annual financial statements expected within 90 days after the year ends.

Read also:FBN Holdings, Zenith Bank top trading as Nigeria’s capital market sheds N386.2bn in five hours

Zenith Bank risks monetary penalty

Failure to submit within the timeframe stipulated by the NGX could result in a financial penalty for a company.

Zenith Bank in the corporate document on Thursday has now stated that it can only make the annual financial statements available 30 days after the new deadline stipulated by NGX, despite failing to meet the previous timeframe, risking a monetary fine from the capital market.

The firm disclosed that after approval by the Central Bank of Nigeria (CBN), the audited Financial Statement for the year ended December 31, 2022, will be released to the NGX on or before March 31, 2023.

“Zenith Bank Plc (the Bank) wishes to notify the Nigerian Exchange Limited (NGX or the Exchange) and the investing public that in view of the need to finalize all outstanding issues relating to the component audit of the subsidiary companies, the full year Audited Financial Statement of the bank will be submitted to the Exchange on or before March 31, 2023, after receipt of the approval of the Central Bank of Nigeria (CBN),” the document reads.

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