First Bank has for years been plagued by “bad credit decisions, significant and non-performing insider loans and poor corporate governance practices”
The management of FBN Holdings PLC, the parent company of First Bank, says the holding company and the bank will cooperate with the new directive from the Central Bank of Nigeria.
The was made known by the bank on Friday through a corporate disclosure to the Nigerian Exchange Limited.
The statement was signed by the company secretary, Seye Kosoko.
The CBN, on Thursday, sacked the board of the bank and its holding company, in a dramatic move that came a day after the bank named Gbenga Shobo as its new managing director.
First Bank has for years been plagued by “bad credit decisions, significant and non-performing insider loans and poor corporate governance practices”, the CBN said Thursday.
The CBN governor, Godwin Emefiele, while speaking to journalists said First Bank maintained healthy operations up until 2016 financial year when the CBN’s examination revealed that the bank was in grave financial condition with its capital adequacy ratio and non-performing loans ratio substantially breaching acceptable standards.
First Bank has over 31 million customers with deposit base of N4.2 trillion, shareholders’ funds of N618 billion and NIBSS instant payment (NIP) processing capacity of 22 per cent of the industry.
In his speech, Emefiele announced the reinstatement of Sola Adeduntan as the managing director and chief executive officer of the bank, a day after he was removed by the board.
He said the regulator learned about the removal through the media.
In a response Friday, First Bank said it will cooperate with the regulator and that its operations are unhampered.
Below is the full text of the bank’s statement:
STATEMENT TO THE NGX ON RECENT DEVELOPMENTS IN FBN HOLDINGS PLC AND FIRST BANK OF NIGERIA LIMITED
In accordance with the Nigerian Exchange Limited (NGX) Rule Book, we hereby notify the NGX and the investing public of recent developments in FBN Holdings Plc and First Bank of Nigeria Limited.
Further to the press Conference held by the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele on Thursday, 29 April 2021, the Boards of FBN Holdings Plc and First Bank of Nigeria Limited were dissolved and new Boards reconstituted, pursuant to the powers vested in the Central Bank of Nigeria as the primary regulator of both companies.
The Board of Directors of FBN Holdings Plc is now comprised as follows:
1. Mr. Remi Babalola – Chairman
2. Dr. Abiodun Oluwole Fatade
3. Mrs. Kofo Dosekun
4. Mr. Remi Lasaki
5. Dr. Alimi Abdulrasaq
6. Mr. Ahmed Modibbo
7. Mr. Khalifa Imam
8. Sir Peter Aliogo
9. UK Eke, MFR – Managing Director
The Board of Directors of First Bank of Nigeria Limited is now comprised as follows:
1. Mr. Tunde Hassan-Odukale – Chairman
2. Mrs. Tokunbo Martins
3. Mr. Uche Nwokedi
4. Mr. Adekunle Sonola
5. Ms. Isioma Ogodazi
6. Mr. Ebenezer Olufowose
7. Mr. Ishaya Elijah B. Dodo
8. Dr. Sola Adeduntan – Managing Director
9. Mr. Gbenga Shobo – Deputy Managing Director
10. Mr. Remi Oni – Executive Director
11. Mr. Abdullahi Ibrahim – Executive Director
We wish to confirm that the Bank and the Holding Company are both cooperating with the Central Bank of Nigeria and other regulators while the operations of the Bank and the Holdco are not hampered or hindered and are in fact running smoothly.
We wish to reassure the investing public, our esteemed customers and other stakeholders in the words with which the Governor of the Central Bank of Nigeria concluded his press conference on 29 April 2021: “The CBN hereby reassures the depositors, creditors and other stakeholders of the bank of its commitment to ensuring the stability of the financial system. There is therefore no cause for panic amongst the banking public, given that the actions being taken are meant to strengthen the bank and position it as a banking industry giant.”
In closing, we wish to advise investors that, we are aware of our responsibilities to our shareholders and will work to discharge those responsibilities in the manner expected of a company listed on the Premium Board of NGX Exchange Limited.
For: FBN HOLDINGS PLC,
Seye Kosoko
Company Secretary
