Union Bank Reports Biggest Loss in Nigeria's Corporate History

Union Bank of Nigeria Plc has just released its 12 months (full year) trading result to the floor of the Nigerian Stock Exchange. The company, which was among the initial, five (5) banks affected by the CBN/NDIC historic intervention, reported a staggering loss of N72.854 billion.

The Central Bank of Nigeria in conjunction with NDIC had earlier in the year carried out a special audit of the Union Bank alongside others, and found it wanting in the aspect of its capital adequacy and liquidity. The subsequent, mandatory provisioning made in respect of both its non-performing loans and diminution in value of investment assets has thus seen the bank reporting the biggest loss in Nigeria’s corporate history

NOTE: Exceptional item on the P&L Account represents diminution in the value of investments acquired through a subsidiary which arose as a result of the decline in quoted shares prices occasioned by the worldwide economic meltdown and valued as at 14th September 2009. The loss in value amounting to N23.798billion has been charged to the Profit and Loss account as an exceptional item in accordance with the Statement of Accounting Standards (SAS) issued by the Nigerian Accounting Standards Board (NASB).

The date of closure of register of members is November 30 to December 4, 2009. The company’s Annual General Meeting is scheduled to take place on December 15, 2009, at Ladi Kwali Hall, Sheraton Hotels & Towers, Abuja at 11.00am.

Article courtesy of Proshare