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Stanbic IBTC shares rise on CBN backing

By on November 7, 2015

The shares of Stanbic IBTC Holdings Plc rose for the first time in eight days on Wednesday, a day after the Central Bank of Nigeria defended the group against the allegations levelled against it by the Financial Reporting Council of Nigeria.

Shares of the group rose by 4.97 per cent or 95k to close at N19.85 per share, trading statistics from the Nigerian Stock Exchange showed.

Stanbic IBTC Holdings’ shares had fallen by 17.97 per cent from N23 to N18.91, with its market capitalisation declining by N40.9bn in the five trading sessions after the FRC accused it of publishing misleading financial statements for the 2013 and 2014 financial years, and of violating the International Financial Reporting Standards in its reports.

“The rise of Stanbic’s shares is because the CBN has cleared it of any infraction or misdeed as was stated by the FRC,” the Chief Executive Officer, Enterprise Stockbrokers Limited, Mr. Rotimi Fakayejo, said.

“That is restoring the integrity of the company and leading to a turnaround in investor confidence,” he added.

The FRC had on Monday last week directed Stanbic IBTC Holdings to withdraw its financial statements for both years and restate them after concluding that the statements were misleading and that the group concealed information and violated the requirements of the IFRS, among other things.

It also suspended the Chairman, Stanbic IBTC, Mr. Atedo Peterside; the Chief Executive Officer, Mrs. Sola David-Borha; two other directors, Mr. Arthur Odinga and Dr. Daru Owei; as well as KPMG’s Ayodele Othihiwa from vouching for the integrity of any financial statements issued in Nigeria.

Stanbic IBTC Holdings, KPMG Professional Services and some shareholders, however, countered the FRC’s decision, arguing that it violated regulatory procedures.

But the FRC stood by its decisions, insisting that Stanbic IBTC must comply with the sanctions imposed on it.

But on Tuesday, the CBN faulted the decisions of the FRC. In a letter dated November 2 and signed by its governor, Mr. Godwin Emefiele, the central bank said the FRC did not follow due process.
[Punch]