- FCMB Records 10% Drop in Morning Trading but stood at 6% in the Evening…
In a seeming dramatic move, Nigeria’s leading tier-2 bank, First City Monument Bank (FCMB) recorded significant losses at the first trading session of 2021 at the Nigeria Stock Exchange (NSE).
The New Diplomat‘s early morning checks show that NSE reports indicate that as at about 10.56 am, the tier-2 Banking stock was trading at N3.00, printing a decline of 9.91%.
However, as at late afternoon, the drop in share trading stood at about 6% with some noticeable improvement.
According to Investment advisers and crisis management analysts, the dramatic fall in the bank’s share price is traceable to increasing anxieties among investors regarding escalating media reports about reputational issues facing the Bank’s managing director, Mr Adam Nuru as well as FCMB’s seeming lack of coherent crisis management strategy (CMS).
An international Crisis Response Plan (CRP) expert, Ito Mervi told The New Diplomat that the response of the financial institution hasn’t significantly dealt with the integrity issues thrown up in the alleged romantic affairs between the bank’s boss, Adam Nuru and a subordinate staff, which raises critical issues about corporate culture and ethical matters.
Ito Mervi, a senior Swedish Crisis management analyst based in Stockholm said: “The challenge I see here is that there is need to examine the financial organization’s ethical culture from the corporate integrity module, CRP, and CMP. Ideally, in standard organizations with strong CRP, vibrant Crisis Management Strategy and strong corporate ethics, there are usually early warning signals which a forward-looking firm mustn’t overlook. There is need for a reputation audit ideally in scenarios of this nature.”
It would be recalled that the marriage scandal rocking the First City Monument Bank (FCMB) had deepened as over 1,000 people signed a petition asking the board of the bank and the Central Bank of Nigeria to sack the adulterous Managing Director, Adam Nuru from the bank.
According to allegations, for several years, Nuru, in an office romance that has made graphic headlines, has been allegedly having an extra-marital affair with a subordinate in the bank, Moyo Thomas who was legally married to Tunde Thomas, also a banker.
As the narrative goes, Thomas, 45, later died of heart attack after discovering he has been fathering two children that the illicit affair between the FCMB boss and Moyo has allegedly produced.
An associate of late Tunde Thomas had told The New Diplomat in confidence that Tunde had been in wonder land over the years, trying to decipher why “none of the two children have any semblance of his look, facial make up or form, either in parts or as a whole.”
“Besides, the kind of luxury lifestyle that Moyo was living has been a source of concern for Tunde, raising some initial red flags. He was always wondering how she managed to live above board, spending lavishly more than what her earned income can afford,” the associate added.
This account further says Moyo had travelled with the two children on the pretext of proceeding on a vacation to the United States from where she purportedly phoned Thomas to break the news and confirmed his years-long fears over the paternity of the two children.
Following the news, a distraught Thomas was said to have been terribly devastated, leading to a stroke. Associates were said to have persuaded him to engage another woman, and move on with his life, a move which he later did.
However, reports said Thomas tragically died the day he was scheduled to meet his new fiancee’s parents. Autopsy report says he died of heart failure.
In its response, FCMB sought to establish a difference between what it called “a personal matter” and the Bank’s corporate matter in order to create a demarcation line between Adam Nuru’s personal life and FCMB’s corporate mechanics.
FCMB’s Head of Corporate Affairs, Diran Olojo issued a statement. The bank’s statement read: “We are aware of several stories circulating across several media platforms about our bank’s Managing Director, Adam Nuru, a former employee Ms Moyo Thomas and her deceased ex-husband, Mr Tunde Thomas.
“While this is a personal matter, the tragedy of the death of Mr Tunde Thomas and the allegations of unethical conduct, require the bank’s board to conduct a review of what transpired, any violations of our code of ethics and the adequacy of these code of conduct ethics. This will be done immediately”
Notwithstanding the reputational and crisis management issues arising from the Adam Nuru-Moyo Thomas alleged dirty romantic affairs, an important underlying point is that FCMB still remains the best performing Nigerian bank stock with yearly returns at 70% as at close of business on Monday.