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CBN announces N35.4bn net income

By on May 31, 2015

The Central Bank of Nigeria on Friday formally released its audited financial statements for 2013 and 2014 financial periods.

The bank in a statement made available to journalists in Abuja said that with the release of the report, it had now fully adopted the International Financial Reporting Standards.

The two financial statements, it noted, had been approved by its board in accordance with the provisions of the CBN Act 2007.

It said, “The IFRS, one of the frameworks internationally recognised and accepted, mandates adopters of the framework to prepare consolidated financial statements.

“The released financial statements indicate that the net income of the bank for 2013 amounted to N209.6bn, while that of 2014 was N35.4bn out which 80 per cent has since been remitted to the Federal Government of Nigeria in accordance with the Fiscal Responsibility Act.

“The balance of 20 per cent was also transferred to the reserves within the bank.”

It said the IFRS requirement implied that the financial statement of the CBN be consolidated with those of investee entities, such as the Nigeria Export-Import Bank, Abuja Securities and Commodities Exchange, Bank of Industry, Bank of Agriculture, and the Nigeria Interbank Settlement System.

Others are the National Economic Reconstruction Fund, Financial Markets Dealers Quotation, African Finance Corporation and Agricultural Credit Guarantee Fund.

Meanwhile, the bank said that the adoption of IFRS was not without difficulties in view of a number of challenges that include the non-profit-oriented mandates of central banks in their roles of price and financial system stability and economic growth.

The statement said the bank was, however, able to work around these challenges to conclude a successful adoption of the IFRS.

“It is worthy of note that the CBN has been able to conclude IFRS adoption within a period of two years as global experience indicated that many of the IFRS adopting central or reserve banks took longer periods of time to conclude IFRS adoption,” the statement concluded.

In terms of corporate governance, the CBN noted in the financial statements that its Board of Directors was the highest policy making organ of the bank and that decisions were taken with submission from various board committees and departmental directors.

These committees include: Committee of Governors, Finance and General Purpose Committee, Audity and Risk Management Committee, Establishment Committee and Financial System Stability Committee, among others.

“Apart from the Committee of Governors, which is the executive management of the bank, the composition of the other committees includes the right mix of both the executive and non-executive directors for effective good governance,” the statements read in part.

It added that a centralised integrated risk management coordination function is performed by the Risk Management Department whose role is “to develop, maintain and promote an appropriate risk management policy, framework, approach and culture, methodologies, processes and support systems”.

In terms of ethics management, the bank explained that as the central bank of Nigeria, it must, and be seen to be, an institution of integrity which maintains the highest ethical standards.

The executive management of the bank is intensely aware of this core value and expectation, and commits itself to creating a working environment that encourages and facilitates honesty, integrity and ethical behaviour.

 

[Punch]