Get all the latest information on businesses and companies in Nigerian Stock Exchange.
From the CBN regarding Equitorial Trust Bank:
Following the Special Examination of all banks operating in the country, and the subsequent actions by the CBN, the shareholders of Equitorial Trust Bank Limited requested the permission of the Central Bank of Nigeria to be allowed to rectify lapses identified in the bank. In pursuance to that, the shareholders executed a Deed of Covenant, the specific terms and conditions of which included the following:
i. The willingness of the shareholders to recapitalize the bank by way of injection of additional capital latest by June 30, 2010;
ii. Restructuring, diversification and enlargement of the capital base of the bank either by way of a public offering of shares, securing a core investor or merger with a local bank within one (1) year period;
iii. Addressing the corporate governance issues in the bank which were mainly ascribed to the previous Executive Management team in the bank;
iv. Reconstitution of the Board of Directors of the bank through the retirement of two non-executive directors and the appointment of four new non-executive directors, including Dr. Mike Adenuga Jnr. (CON), an erstwhile member of the board, subject to the approval of the Central Bank of Nigeria; and
v. Convening a general meeting of the bank’s shareholders to ratify, through a resolution all the nominated appointments to the bank’s board.
Download the full statement here.
In: Banks
2 Nov 2009As at the last count, at least 4 Nigerian banks are in the market to raise capital through bond issuance. These are Zenith, UBA, First Bank and Guarantee Trust banks. This report by <a href=”http://www.vetiva.com”>Vetiva</a> provides some details on what these banks are planning to do:
Vetiva - Highlights of Proposed Capital Raising By Banks (312)The <a href=”http://www.cenbank.org”>Central Bank of Nigeria</a> on Wednesday, released the list of debtors with non-performing loans to the banks that were recently taken over (Bank PHB, Equitorial Trust Bank, and Spring Bank). Here is an excerpt of <a href=”http://www.tribune.com.ng/15102009/news/news10.html”>Tribune Newspaper’s</a> report:
<blockquote>IN its ongoing sanitisation of the nation’s banking sector, the Central Bank of Nigeria (CBN), on Wednesday, released another list of individuals, corporate organisations, parastatal agencies and state governments owing five banks whose audit reports were released recently.
The total amount owed the five banks, according to the release, is N346,408,028,581.04, excluding the sum total of non performing loan of Wema Bank, which could not be ascertained at press time.
The non performing loans of the banks as at June 30, 2009 and October 5, 2009 respectively revealed Bank PHB topping the list with N170,073,403,358.39, followed by Spring Banks (N95,594,989,430.06), Equitorial Trust Bank’s (N46,154,945,774.44) and Unity Bank (N36,585,690,018.15).
As usual, names of politicians, businessmen and contractors topped the list. These include the former Managing Director of Wema Bank Plc, Mr. Adebisi Omoyeni whose Independent Securities Ltd owes N5 billion and Barrister Jimoh Ibrahim whose total loan is put at N5 billion also.
Others include Femi Otedola of Zenon Petroleum Gas Limited (N5,154,041,716.86), Peter Ololo of Petosan Oil & Gas Company Limited (N4,548,125,091.02), Chief Oyewole Fasawe (N7,874,801,592.84) and Kola Daisi of National Sports Lottery Ltd (N4,821,060,327.76).</blockquote>
You can download the report below.
CBN-Bank Debtors - Oct 14th 2009 (260)
The Central Bank of Nigeria (CBN) today released the results of the audit of the remaining 14 banks. Equitorial Trust Bank, Bank PHB, Wema Bank, and Spring Bank were found to be in grave situations. The CEOs of Equitorial Trust Bank, Bank PHB and Spring Bank have been removed and replaced with immediate effect. Here [...]
Here is a document dump of different reports and news stories on the banking crisis and the actions taken by the CBN.
Vetiva provides some details on the CBN’s presentation/road-show in the UK in late August. The noted that:
- All write-downs are to be taken in the current quarter (i.e. quarterly results to be released for September ending will feature total provisions for non-performing exposures)
- Results not to feature high profitability margins
- GTBank and Diamond Bank have already accounted for losses as at second quarter of 2009 (i.e. Q2’09 ended June 30, and Q1’09 ended July 31 respectively), so their results in Q3 are expected to be much better than the average performance of most other Banks
- Fourth quarter (ending December) should be strong for Nigerian Banks in general because earnings will no longer be eroded by Non-Performing Loans
Vetiva - Sanusi's Meeting With CNBC Africa - Aug 28th 2009 (302)
One of the most explosive revelations of this entire exercise was the news report by Vanguard in March about the plans to “level” the ground in the banking sector to favour the Northerners and how 5 banks were going to be taken over.
Vanguard March 23, 2009 - The Plan to take over 5 banks (293)
Standard Chartered also prepared an analysis of the events. The pointed out that:
-CBN prints money to fund the initial cost of the bank bailout
-Given the current environment, and the contraction in broad monetary aggregates already underway, this is unlikely to be inflationary
-A diverse range of funding options are open to the authorities
-The hope is that the CBN’s capital injection will be recovered following future private-sector investment in Nigeria’s banking system
Standard Chartered - Nigeria – Paying for the bank bailout - Aug 25 '09 (543)
Proshare NG also provided some analysis:
CB - Dissecting the problems with Nigerian Banks (2160)
Fronteria Post of 4 out of the CBN (217)
Here is Afrinvest’s analysis of the current state of the Nigerian banking sector. You can download their initial analysis of the banking sector as at April 2009 and the more recent analysis. Here is their summary:
The Nigerian Tribune had an article today on the complaints of the stakeholders of the banks taken over by the CBN.
You can read excerpts of the report below. My comments follow.
This blog is dedicated to informing users on the latest business and economic news news from the CBN and Nigerian Stock Exchange. Happy reading!