United Bank for Africa (UBA) and Stanbic IBTC are facing various lawsuits that could result in significant revenue losses for the financial institutions.
As of 2022, about 411 cases have been filed against Stanbic IBTC, while UBA is currently involved in 1,422 legal cases that could lead to operational risk or liabilities. This was gathered from their financial statements for the period of 2022.
The lawsuits against Stanbic IBTC, which are filed in the Supreme Court, Federal High Court, Appeal Court, amongst others, would cost the company N264.84 billion, $4.43 million and £74,284.64.
Stanbic IBTC stated that the litigation relates to alleged errors, omissions and breaches. The lender said it has adequate insurance cover and provisions in place to meet the claims attached to the legal actions.
“The Group litigation portfolio as at 31 December 2022 consisted of 411 cases and aggregate value of monetary claims against the Stanbic IBTC Group was N264,842,827,754.70; USD$4,438,678.78 & GB £74,284.64.
“The claims against the Group are generally considered to have a low likelihood of success and the Group is actively defending same.
“Management believes that the ultimate resolution of any of the proceedings will not have a significantly adverse effect on the Group.
“Where the Group envisages that there is a more than average chance that a claim against it will succeed, adequate provisions are raised in respect of such claim. See note 26 for details of provisions,” a statement seen by Prime Business Africa says.
For UBA, the 1,422 legal cases against the firm could cost Tony Elumelu-led commercial bank N666.12 billion. Although the lender said there won’t be significant liability from the litigations against them.
“The Group, in the ordinary course of business is currently involved in 1,422 legal cases (2021:1,363). The total amount claimed in the cases against the Group is estimated at N666.124 billion (2021: N698.950 billion).
“The directors having sought the advice of professional legal counsel, are of the opinion that no significant liability will crystalise from these cases beyond the provision made in the financial statements,” UBA wrote.
Meanwhile, Prime Business Africa previously reported that Zenith Bank is also facing charges with claims valued at N967 billion. This is more than the N143.5 billion lawsuits slammed against the firm in 2021.
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