Three Nigerian Banks Fined N13.5 Million For Default Filings Of Financial Statement For 2021/2022

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The Nigerian Exchange Limited (NGX) has fined three banks N13.5 million for failure to file their financial statements after the regulatory due date.

Investigation by SKYTREND NEWS showed that the companies were sanctioned during the current financial year 2022 for their inability to meet the regulatory requirements ranging between FY’2021 and the first quarter of 2022.

The companies include Union Bank Plc, Unity Bank Plc and First Bank Holdings Plc.

Further checks revealed that First Bank Holding Plc led with N8.1 million of the fines while Unity Bank Plc followed with a fine of N4.2 million and Union Bank Plc trailed with N1.2 million.

Three Nigerian Banks Fined N13.5 Million For Default Filings Of Financial Statement For 2021/2022

The Exchange in its X-Compliance report explained that the initiative was designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies.

The report thus stated that “Companies that are listed on the Exchange are required to adhere to high disclosure standards which are prescribed in Appendix 111 of the Listing Rules.

“Financial information which is periodic disclosure and on-going material events disclosure should be released to The Exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market”.

NGX RegCo applied sanctions in accordance with the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of NGX (Issuers’ Rules).

Breakdown of the fines

  • First Bank Holdings Plc got N5.5 million fine for 2021 audited financials and N2.6 million for Q1’2022 financials.
  • Unity Bank Plc was penalized with N3.6 million fine for 2021 audited financials and N600,000 for Q1’2022 financials.
  • Union Bank Plc got N1.2 million fine for 2021 audited accounts.