FCMB Exposure to Legal Issues Rises by 350% in 1-Year

FCMB Exposure to Legal Issues Rises by 350% in 1-Year

FCMB Plc’s exposures to legal claims or lawsuits from third parties arising from various business issues increased by about 350% year-on-year to N152.98 billion from N34 billion in 2023, according to the group’s audited financial statement for 2024.

This happened despite a moderate increase in the number of fresh lawsuits against the financial services company within 12 months – with the potential to trigger material financial obligations.

In a disclosure, FCMB said the group in its ordinary course of business is presently involved in 499 cases as a defendant, up by 3.1% year on year from 484 lawsuits in 2023. The total amount claimed in the 499 cases against the group is estimated at N152.98 billion, according to the audited report in 2024, from N34.01 billion in financial year 2023.

The total amount claimed in the 133 cases instituted by the financial services group increased sharply to N46.2 billion from N15.87 billion in the year 2023. FCMB directors are of the opinion that none of the aforementioned cases is likely to have a material adverse effect on the Group. 

The group disclosed that directors are not aware of any other pending and/or threatened claims or litigation that may be material to the financial statements.

Based on the realistic reserves as recommended by solicitors in charge of these ongoing litigations, N12.49 billion in provision was made for the period ended 31 December 2024, an increase of 40.33% from N8.9 billion in 2023.

In addition, FCMB had pending complaints of 525 at the beginning of the year and received an additional 557,180 during the year ended 31 December 2024, of which 555,659  complaints were resolved  – inclusive of pending complaints brought forward.

In 2024, 2,046 complaints remained unresolved and pending with the Group as of the end of the year.  FCMB disclosed that the total amount resolved was N7.93 billion versus N39.46 billion in 2023.

The total disputed amount in cases that remained unresolved stood at N82.24 million compared to N11.68 million reported in 2023, the group disclosed. FCMB highlighted that these unresolved complaints were referred to the Central Bank of Nigeria for intervention, according to details from the group’s audited report for 2024.

“The directors are of the opinion that these complaints will be resolved without adverse consequences for the group. No provisions are therefore deemed necessary for these claims,” FCMB disclosed.

The market value of the financial services company settled at N368.333 billion in the equities market.  #FCMB Exposure to Legal Issues Rises by 350% in 1-Year #FCMB Exposure to Legal Issues Rises by 350% in 1-Year CSCS Shareholders Approve N8.8bn Total Dividend in 2024