Shareholders of Deposit Money Banks lost a total of N136.74bn to the crisis that rocked the banking sector between 2009 and 2010, according to information contained in the 2010 annual report and statement of accounts of the Nigeria Deposit Insurance Corporation.The report, which is NDICs most recent compilation on the finance sector, is jointly signed by the Chairman of the corporation, Dr. Hassan Adamu, and its Managing Director, Mr. Umaru Ibrahim.Shareholders funds are the balance sheet value of the owners interest in a company and also include profits or losses retained within a given period of time.An analysis of the report, which was obtained by our correspondent in Abuja, showed that while some of the banks recorded an increase in their shareholders funds, others, especially the intervened ones, experienced huge decline.The report showed that the industrys adjusted shareholders funds dropped from N448.99bn in 2009 to N312.36bn in 2010.This, it noted, represented a decline of 30 per cent or N136.74bn over the preceding period.The report attributed the huge decline to the crises that rocked the 10 intervened banks, which made them to record huge negative shareholders funds before they were bailed out by the Central Bank of Nigeria through the Asset Management Corporation of Nigeria.The apex banks intervention is still a subject of controversy as the shareholders of the rescued banks have filed cases in court, challenging the takeover of their investment.However, the NDIC report stated, "There was a decline in the industrys adjusted shareholders funds from N448.99bn in 2009 to N312.36bn in 2010. That was as a result of the impact of the 10 intervened banks, most of which still had huge negative shareholders funds. "The industry shareholders funds were, however, expected to improve in the coming years with the activities of the AMCON and the expected infusion of capital into the individual banks by their core investors."Already, some of the banks recorded an improvement in their shareholders funds as a result of the first round of purchase of non-performing assets by AMCON," it added.An analysis of the report indicated that the shareholders of Union Bank of Nigeria Plc lost N242.93bn; Bank PHB Plc (now Keystone Bank), N82.61bn; and Afribank Plc (now Mainstreet Bank), N43.58bn.The three banks were nationalised by the NDIC in August following their inability to meet up with the September 30 recapitalisation deadline. Other banks, whose shareholders funds declined during the period, are Intercontinental Bank Plc (N27.78bn); Zenith Bank Plc (N20.19bn); Stanbic IBTC Bank (N8.52bn); First City Monument Bank Plc (N4.74bn); and Fidelity Bank Plc (N470m)However, despite the crisis in the sector, some banks recorded significant growth in their shareholders funds, while others grew theirs marginally.Those that recorded huge growth are United Bank for Africa Plc (N60.21bn); Oceanic Bank International Plc (N64.3bn); Ecobank Plc (N46.26bn); Guaranty Trust Bank Plc (N32.67bn), First Bank of Nigeria Plc (N18.32bn); Access Bank Plc (N13.31bn); Diamond Bank Plc (N12.05bn); Skye Bank Plc (N10.58bn); and Unity Bank Plc (N11.49bn).Citibank Nigeria Limited (N490m); Standard Chartered Bank Limited (N6.26bn); and Sterling Bank Plc (N1.54bn), however, recorded marginal growth in their shareholders funds.
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