There is palpable concern in the financial market over the expected failure of First City Monument Bank (FCMB) Plc to release its third quarter unaudited result by October 30, 2022. It says the result would be published on November 29 instead, a difference of 30 days.
On Friday, October 14, 2022, the bank informed the Nigerian Exchange Limited (NGX) that “it will not be able to file its nine months (Q3 2022) results for the period ended 30, September 2022 by the due date of 30, October, 2022.”
The notice which was signed by the Company Secretary, Mrs. Olufunmilayo Adedibu claimed that “the delay is due to the audit of the Company’s largest subsidiary, First City Monument Bank Limited (the Bank) for the. period ended 30 September, which accounts for 68% of its Group’s profitability and which results would have material impact on the Group’s consolidated accounts. The Consolidated third quarter 2022 result of the Group will be published on or before 29 November 2022.”
But a noted financial expert told Business Journal that the excuse by FCMB was a normal routine to hide negative information to regulators and shareholders.
“When a bank begins to issue advance notice of delay in filing its statutory financial result, it raises speculation that such result is either in the negative (bad) or they need more time to prepare the minds of regulators, shareholders and the banking public not to expect fantastic result. For FCMB, this development is definitely a red flag-meaning more intensive scrutiny once they publish that result on November 29 as promised. The 30-day window of deliberate delay is unnecessary if their financial result is positive.”