Staff of Bank PHB resumed work this morning to find that the bank's chief executive, Francis Atuche, has resigned his position. Mr. Atuche made his decision known in a farewell letter that was sent to the staff at about 7:00am.

In the letter, the former executive did not say why he is leaving the bank at this time but said, "As in all things however, there is a time to say GOOD BYE. As I bow out today from the Bank, I earnestly urge each and everyone of you to keep the PHB passion aflame so that the height, the mount everest which we envisioned shall not only be accomplished, but shall be surpassed and we would have created an institution that would outlive".

Mr. Atuche also attempted to justify his policies as the bank's head. "In the course of my stewardship we took decisions which affected all of us in different ways but they were in the best and overall interest of the Bank," he said.

Last night, sources told NEXT that the central bank had concluded plans to sack the bank chief today.

It is unclear, at this point, whether the bank's board will appoint a new executive or the CBN will make the appointment as it had concluded to do.

Four other banks, ETbank, Unity Bank, Wema Bank and Spring bank are reported to have also failed the CBN's stress audit. In all cases, it is expected that their chief executives will either resign or be relieved of their jobs by the CBN.

The sources also said the Central Bank will pump N200 billion into the banks to stabilise them. The Central Bank is shopping around for capable hands to run the banks during this emergency situation. It is not clear if the banks will be allowed to stand alone or be forced into the hands of more robust institutions.

NEXT investigations reveal that the problems of Bank PHB involve non-performing loans, as well as the attempted acquisition of Spring Bank. ETB on the other hand is in trouble not for lack of money but a total lack of corporate governance, according to our source. Spring Bank was described as a shell, while Unity Bank is believed to be broke.

Two weeks ago, the Central Bank in a communiqué confirmed that it had completed the audit of 11 more banks, and was continuing work on the audits of the last three. The communique said: "The CBN wishes to confirm that examiners have concluded their audit on 11 out of 14 banks not included in the first exercise. They have also made significant progress on the remaining three banks and these are Citibank, Stanbic IBTC and Standard Chartered."

The Nigerian banking sector has been in a state of flux since August when the then new CBN Governor, Sanusi Lamido Sanusi, in one fell swoop, got rid of, the chief executives of five banks, namely Oceanic Bank, Union Bank, Afribank, Fin Bank and Intercontinental Bank.

When he announced the sacking, Mr. Sanusi said "these banks were unable to meet their maturing obligations as they fall due without resorting to the CBN or the inter-bank market. As a matter of fact, the outstanding balance on the Expanded Discount Window of the five banks amounted to N127.85 billion by the end of July 2009, representing 89.81% of the total industry exposure to the CBN on its discount window, while their net guaranteed inter-bank takings stood at N253.30 billion as at August 02, 2009. Their Liquidity Ratios ranged from 17.65% to 24% as at May 31, 2009. (Regulatory minimum is 25%)."

Once the dust settled, it became quickly clear that the banks had weak risk management frameworks and poor corporate governance, which resulted in the depletion of their capital and overexposure to marginal loans in the downstream sector of the oil and gas industry.

The five banks that were affected by the sackings have since seen a sharp drop in share price. Speculators believe their market value may drop to the nominal value of 50 kobo.

The CBN has so far injected N420 billion into the five banks for emergency capitalisation. The Central Bank also continued its cleansing action with the publishing of the over 200 debtors, owing more than N740 billion.

http://234next.com/csp/cms/sites/Next/Money/Finance/5466377-146/Bank_PHB's_chief_executive_resigns.csp

hot news

Yes! Sanusi sanitise a job well done

waaooohhhhh.

Waiting for more resignations.

These pple don kill us finish[color=#770077][/color]

Congratulations! At last the man chose the honourable path to exit.

Just when I was thinking 'resign' was not in the Bank PHB dictionary.The guy obviously missed some important shots on the snooker board. I laugh in spanish. Good better, Bank PHB indeed!

Why should some CEOs be allowed to resign while some others were sacked.
The implication of a sack is different from a resignation; esp. in the banking industry.
Is CBN saying that the gravity of their mismanagement differ?

Also, what policies (aside N 200 billion injection) are in place by CBN to improve on the poor business climate in the country now? Things are grinding to a halt.

We should bear in mind  that Xmas is around the corner?

He has debunked his resignation report:

“Contrary to reports today, I have not resigned from the bank. I simply wrote a thank you letter, a valedictory letter, in readiness for whatever the CBN wants to do,” he said.

http://www.thisdayonline.com/nview.php?id=155990

Jarus:

He has debunked his resignation report:
http://www.thisdayonline.com/nview.php?id=155990

True talk oooo!I just read it a while ago.
Naija Na wah!

As the Central Bank of Nigeria prepares to make its announcement this afternoon on the second round of intervention in five of the 14 banks for which it has concluded the special audit exercise commenced on the 14 last August, the Managing Director/CEO of Bank PHB, Mr. Francis Atuche has held out to the bitter end.

The banks that will be affected by the shake up are BankPHB Plc, Spring Bank Plc, Equitorial Trust Bank Plc, Wema Bank Plc and Unity Bank Plc.
The announcement will be made by CBN’s Deputy Governor, Operations, Mr. Tunde Lemo who will be standing in for the Bank’s Governor, Mr. Sanusi Lamido Sanusi.

Sanusi it was confirmed left for Ankara, Turkey this morning on a British Airways flight to attend the annual meetings of the World Bank and International Monetary Fund.

Speaking to THISDAY a few minutes ago, Atuche denied newspaper reports (not THISDAY) this morning that he has resigned his position from the bank.

Specifically, he said he wrote a thank you letter to his staff, preparatory for the CBN announcement this afternoon on his removal as BankPHB’s CEO.

“Contrary to reports today, I have not resigned from the bank. I simply wrote a thank you letter, a valedictory letter, in readiness for whatever the CBN wants to do,” he said.

He said he has had a very interesting six weeks and “has seen the other side of midnight” but is taking whatever the outcome will be this afternoon in good faith.

When asked if he will attend the meeting convened by the CBN today with the affected five banks, he answered in the affirmative. “Yes I will be there. I have no reason to stay away,” he stated.

Atuche has been fighting the battle of his life for well over a week to retain his position as MD/CEO of BankPHB.

Last Monday, the chairman of the bank, Mr. Kola Abiola who saw the writing on the wall and based on feelers from the CBN, had advised him to resign, which he initially said he would consider but later bluntly refused to step down.

This got to a head on Wednesday, this week, when some directors of the banks held a meeting (not board meeting) at the premises of Spring Bank, a subsidiary of BankPHB.

At the meeting, Abiola once again raised the issue of Atuche’s resignation which he rejected a second time with the backing of other directors.
Atuche, after the meeting, promptly left Lagos for Abuja to solicit the support of high ranking government officials to intercede on his behalf with the CBN governor. But it was too little too late.

Had he accepted the offer on the table to resign voluntarily on Wednesday, BankPHB’s board would have appointed their own MD/CEO and would have been saved the embarrassment of having a new executive management appointed for them by the CBN.

BankPHB’s problems are not unconnected to acquisition of the crisis-ridden Spring Bank last year. The acquisition resulted in huge holes in the books of BankPHB.

The second round of intervention by the CBN entails the injection of N200 billion in the five banks and the removal of the executive management of three of them.

The three banks whose executive management will be removed this afternoon are BankPHB, Spring Bank and Equitorial Trust Bank who will be replaced by a new team to be announced by the CBN today.

The audit exercise showed that all three banks are illiquid and their capital adequacy ratios failed to meet the minimum stipulated requirement.
In the case of Wema and Unity Banks, their management will not be removed, but both banks will get capital injections from the CBN.

The management of both banks are being let off the hook for two reasons. In the case of Unity Bank, the audit showed that even though its capital adequacy fell below the minimum stipulated requirement, it was sufficiently liquid, and was therefore advised by the CBN to raise additional capital.

It was given till June next year to meet the minimum capital adequacy ratio of 10 per cent as stipulated by the CBN.

With respect to Wema Bank, the bank’s management is being left in place because it is a new team that took over the bank barely six months ago after the O’dua Group which previously held a substantial stake in the bank sold it to new shareholders, a consortium called the SW8.
The management of Wema Bank has also been advised by the CBN to raise fresh capital.


http://www.thisdayonline.com/nview.php?id=155990

Leadership, virtually in every institution in the Nigerian society is failing.

so which one we dey? this has turn to a play and atuche is writing his own script.

he has resigned already, he sent a mail to every one at bankphb this morning

did he resign with all rhe money he mismanage
abi he refund the money

Nigeria's Bank PHB chief exec resigns - sources


The heads of Nigeria's Unity Bank (UBPL.LG) and Wema Bank (WEMA.LG) are among five bank chiefs summoned to a meeting on Friday with the central bank following the completion of an audit, a CBN spokesman said.

The central bank said earlier it had summoned the heads of five banks including Bank PHB (BPHB.LG), Spring Bank (SPRN.LG) and Equitorial Trust Bank to the meeting.


http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSL214955420091002

What a wonder!

At least we will av some sanity.But wait oo when will the audit group of EFCC move to the legislative&executive arm of government at states&federal level including ministers,commissioners&perm sec.Some of this pple are corrupt.Theirs name shd be published natiowide&asked 2 resign too.After all we are sanitizing d polity

why did he debunk the rumour at first dat he is nt resigning,dat 1 na him headache sha.

chelseabmw:

he has resigned already, he sent a mail to every one at bankphb this morning

Did you read this:
“Contrary to reports today, I have not resigned from the bank. I simply wrote a thank you letter, a valedictory letter, in readiness for whatever the CBN wants to do,” he said.
http://www.thisdayonline.com/nview.php?id=155990

o je bi
Rubbishhhhhhhhh!!!!!!!!!!!!!

Niger naaaaaaaa waaaaaaaaaaa.More are still coming,in transit

drama

Bank PHB says Actor no dey die!

We dey wait to see whether na true!!  

6 down,how many more to go let keep our arms crossed.

What did he do wrong.  It sounds like they were just swindled by Spring Bank management.

It is a pity that technocrat may not contribute on the event on this forum. There should be a
sober reflection. This is beyond the mental intellect of ordinary citizen. What we have witnessed is the collapse of the economy. Only God can save us. All the gains of the past years wasted as the tempo cannot be sustained. These people (bank ceos) are not alone in this trouble. Those young graduates that are employed over the years with salary above 100K, the contractors that implemented massive branch expansion and infrastructure even in rural areas, the various communication media (print & electronic) that enjoyed great patronages (junior world cup, advert is very low now), Corporate social responsibility in all states of Nigeria by these banks. Various people providing services one form or the other.

Most of the unserviced loan is held by individuals with invetsment in corporation employing 100 of thousands of Nigerians directly with millions relyng on these corporation for survival. The may have used substantial part of these fund for personal use.

Air lines are having serious problems on domestic route now and are begging for government bailout . This is applicable to most sectors. If the economic is not performing, It will certainly affect everything. In the time past, government corporations with monopoly and heavy government investment have failed severally. Transforming from government driven economy to private driven may have caused the bank ceos problems.

Employment by corporations has drastically reduced and economic activity dwindling. Another set of NYSC should forget banks gmat test for now.

anuore:

It is a pity that technocrat may not contribute on the event on this forum. There should be a
sober reflection. This is beyond the mental intellect of ordinary citizen. What we have witnessed is the collapse of the economy. Only God can save us. All the gains of the past years wasted as the tempo cannot be sustained. These people (bank ceos) are not alone in this trouble. Those young graduates that are employed over the years with salary above 100K, the contractors that implemented massive branch expansion and infrastructure even in rural areas, the various communication media (print & electronic) that enjoyed great patronages (junior world cup, advert is very low now), Corporate social responsibility in all states of Nigeria by these banks. Various people providing services one form or the other.

Most of the unserviced loan is held by individuals with invetsment in corporation employing 100 of thousands of Nigerians directly with millions relyng on these corporation for survival. The may have used substantial part of these fund for personal use.

Air lines are having serious problems on domestic route now and are begging for government bailout . This is applicable to most sectors. If the economic is not performing, It will certainly affect everything. In the time past, government corporations with monopoly and heavy government investment have failed severally. Transforming from government driven economy to private driven may have caused the bank ceos problems.

Employment by corporations has drastically reduced and economic activity dwindling. Another set of NYSC should forget banks gmat test for now.

A very interesting perspective!!!

What is gwanz in our banking sector. Absense for mi no know.

why couldn't he wait for the final publication from CBN to be out before his official resignation? Well, even if he resigns, his own share of food shall still be pass to him sooner or later.

Why didn't Lamido disgrace him and ruin his life like he did the other 5 CEOs ?

i like what cbn governor is doing. but i hope it does not boomarang in future, that is retrenchment of workers