CBN, NGX, SEC Fine First Bank, FBN Holdings N25.9 million For Aiding Fraudulent Dealings, Others

First Bank of Nigeria (FBN) Holdings and its subsidiaries were fined N25.9 million for fraudulent dealings and various contraventions, Prime Business Africa gathered.

First Bank of Nigeria Limited, the subsidiary lender, was sanctioned by the Central Bank of Nigeria (CBN) for aiding the fraudulent dealings and withdrawal in 2022.

The CBN also penalised First Bank for not preventing the opening of fraudulent accounts. The commercial bank was fined N2 million. 

Also, the CBN slammed the commercial bank with an N11.5 million fine for infractions in the month of April, “CBN penalty for aiding the fraudulent dealings/withdrawal through the opening of fraudulent accounts – Adcose Limited N2 million.

“CBN Penalty for infractions in the month of April in respect of the CBN-NESI Stabilization Strategy by First Bank Kaduna N11.5 million,” a statement obtained from the 2022 financial records of FBN, which was released on Friday, reads.

Also, the parent company of First Bank Limited, FBN Holdings, was sanctioned by the capital market authorities; NGX Regulation Limited and the Securities Exchange Commission (SEC).

NGX Regulation Limited and the SEC fined FBN Holdings N8.1 million and N3.98 million respectively for late submission of its financials for la 

“During the period ended 31 December 2022, the Company paid penalty of N8.1 million and N3.98 million to NGX Regulation Limited and the Securities Exchange Commission respectively; for the late submission of audited financial statements for the period ended December 31, 2021 and unaudited financial statements for the period ended March 31, 2022,” the statement disclosed. 

The fine was also extended to FBN Holdings’ merchant bank subsidiary FBNQuest Merchant Bank Limited, “The Bank paid penalty of N0.4m for late filing of Commercial Paper documentation contravened with FMDQ.” 

Meanwhile, FBN Holdings suffered a –9.8% or N14.90 billion drop in its Profit After Tax, which closed 2022 with N136,17 billion, failing to surpass the N151.07 billion net profit reported in the full year 2021. 

Although FBN was able to grow its Net Interest Income by 59.1% to N363.24 billion last year, against the N228.24 billion posted the preceding year.

Also, the company’s gross earnings rose to N805.12 billion, which is a 6.31% year-on-year increase when compared to the N757.29 billion revenue generated last year.