Aderinokun explains GTB’s change
of accounting year
By AMECHI OGBONNA
Monday, October 6, 2008
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•Phtoto:
Sun News Publishing
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Managing Director and Chief executive, Guaranty Trust Bank
Plc, has given reasons for the bank decision to adopt December
31 as the end of its financial year, effective December 31,
2008
In a recent statement in Lagos Aderinokun, said the decision
was informed by the need for the bank to sustain its tradition
of ensuring the adoption of international best practices in
all its locations across the globe, since most renowned international
banks have December 31, as their financial year end.
He also noted that the move would help align the bank’s
year end with that of its other subsidiaries, which already
operate a December 31, year end.
The bank which is fast becoming one of the nation’s
most diversified new generation financial institutions currently
has subsidiaries in such areas as insurance, real estate and
asset management services.
With over 140 business offices in Nigeria and banking subsidiaries
in Ghana, Sierra Leone, Gambia and the United Kingdom, Guaranty
Trust Bank has over the years maintained a pre-eminent position
as a major player in the Nigerian financial services industry.
The adoption of the December year end according to its managing
director is expected to bring the bank’s operations
and books in line with what obtains on the international arena
with its entry into the global banking landscape.
For instance besides making strong in-roads into the Africa
market, Guaranty Trust Bank was regarded by some analysts
as the first Nigerian institution since the early 1990s, to
venture into the international capital markets and raise funds
in a Regulation S. Eurobond issue with a $350 million Eurobond
issue.
The move was preceded by the listing of its US750million Global
Depository Receipts (GDRs) on the London Stock Exchange. The
bank also emerged as the first Nigerian bank to receive the
International Standard Organization (ISO) 9001:2000 award
of the Standards Organization of Nigeria (SON) in recognition
of its quality management system and conformity with global
best practices.
It could be recalled that Guaranty Trust Bank was one of the
few banks that indicated its intention to comply with the
uniform December year end proposal by the Central Bank of
Nigeria (CBN), early this year.
But the short-lived CBN proposal which has since been reversed
was believed to have triggered off regime of cut throat interest
rates, as various banks began recalling huge unmatured loans
to corporate customers across the country in an attempt to
beef up their books to meet the apex bank’s requirements.
The impact of this development which was believed to have
caused serious instability and panic in the entire financial
sector including the capital market however led to an emergency
action by regulators including the NDIC, the Federal Ministry
of Finance and the CBN in August leading to its eventual suspension. |
