EXIT MEETING WITH NDIC EXAMINERS AND BOARD/MANAGEMENT

OF TRIDENT MICROFINANCE BANK LIMITED HELD ON 13TH AUGUST

2018
Attendance
NDIC STAFF
1. Mr. Saad - NDIC Team leader
2. Mr. AjibolaZubairu - Member
3. Mrs. Amina Abubakar - Member
4. Mrs. Jane - Member
5. Mr. Mustapha - Member
and 2 others staff from NDIC.

Trident MFB Ltd

1. Femi Alade - Chairman
2. EyitayoAina - Director
3. Stephen Ogbadu - Ag.MD/HOP
4. KayodeOwolabi - Head, Internal Control

The following observations were reported at the meeting:

BOARD OF DIRECTORS
1. There was no board charter
I. There was no documented succession plan at both the board and
senior management level
II. No board policy defining the members tenure
2. Three of the members were yet to executive the prescribe CBN code of
conduct form example KunleOriola, Stephen Ogbadu and OpeniyiAlade.
3. There was no appraisal conducted on the board of Directors by an
independent consultant.
4. The board of Directors met only once during the period under review 20th
April 2018.
I. The board audit committee met 2 times
II. Board finance and general purpose committee met 2times.

SENIOR MANAGEMENT
 1. The bank organogram was not approved by CBN
2. The appointment of Head Internal Control was yet to be approved by
CBN.
3. The senior management were yet to complete their MCP.
4. The bank have only one (1) Head of Unit, Head of Internal Control
against the minimum number of Heads:
I. Operations, Credit & Marketing
II. Finance & Admin; and Internal Audit

INFORMATION TECHNOLOGY
1. The bank has no IT staff
2. IT steering committee met only once during the period under review.
3. There was no internal audit report on IT
4. There was no restriction to IT room and it was observed that the room
door was always open.
I. No insurance on IT equipment
II. The antivirus for the bank has expired.

RISK MANAGEMENT
1. The Risk management framework was not approved by CBN
2. There was no regular report on risk management and the risk
management frame work was not fully implemented.
COMPLIANCE
1. The bank did not have policy manual on compliance.
2. The bank did not generate any report on compliance.

INTERNAL AUDIT
1. There was no regular audit report in the bank
2. The internal auditor also handle risk management.

FUND MANAGEMENT
1. The bank did not have any contingency funding plan.
 2. There was a mismatched in loan to deposit ratios example:
Loan Deposit
1-30 15.93 2.45
31-60 1.58 0.55
61-90 1.58 1.33

3. The bank did not have fidelity insurance bond on their staff.
4. The percentage of savings to total deposit was 3.32% which was
far below the regulatory minimum of 60%.
5. Vault movement register was not enforced.

FINANCIAL ANALYSIS
1. The bank was advised to expense N1,087,000 by their External
Auditor which the bank was amortizing before the management
just reversed back the amount. The amount was transferred to other
known losses. (OKL)
2. There is deposit concentration risk e.g. deposit N50m by one
customer.
3. Account reconciliation were not up to date and the bank was
advised to maintain different file for different account.
4. Differences of about N82,000 was observed in 2016
5. The bank went ahead to purchase more assets despite the fact that
CBN have advised not to do so.
6. The acting MD/CEO also double as financial analysis officer he
only generate report on financial analysis function

LENDING/CREDIT

1. The bank’s PAR is 61.6%

I. Loan loss provision is N40,502,757.88
2. Differences observed between the loan schedule and trial balance is
N4,634,008.45
3. Board credit committee met only once during the period under review.
4. Some facilities were restructured without board’s approval example:
I. RajiYetundeJemilat
 II. Light Estate
III.Sanisah Communication.
5. Some loans have tenor of 18 months and they commented that loan tenor
should be less than 12 months except lending to agriculture sector.
6. Loan should have collateral other than personal guarantee example Adios
Global, Kas Arts Services

CONCLUSION:
To conclude the team leader Mr. Saadappreciated the support and
cooperation received from the management and said any account that the
management have assurance that will pay off within one week should be
forwarded to them (NDIC) in order to reduce the bank’s provision along
with the statement of account. In addition he said since Head of operation is
acting MD/CEO, a letter should be issued to him in respect of this
designation.