The Nation Newspaper

Category: Investors

  • Shareholders inject N1.35b into Red Star Express

    Shareholders inject N1.35b into Red Star Express

    Taofik Salako, Capital Market Editor

     

    SHAREHOLDERS of Red Star Express Plc have injected N1.35  billion new equity capital into the company to strengthen its operations.

    The new capital was through  subscribed rights issue. Filing at the Nigerian Stock Exchange (NSE) showed that Red Star Express raised N1.347 billion through rights issue of 336.86 million ordinary shares of 50 kobo each at N4 per share. The rights issue was pre-allotted on the basis of four new ordinary shares for every seven ordinary shares held by August 21.

    The shares from the rights issue totaling 336.86 million ordinary shares of 50 kobo each have been added to the outstanding shares in the name of Red Star Express on the NSE, increasing the company’s issued share capital from 589.497 million ordinary shares of 50 kobo each to 926.352 million ordinary shares of 50 kobo each.

    The company had indicated that the net proceeds of the rights issue, estimated at N1.31 billion, would be used to finance expansion of its operations, deployment of improved technology and increase in working capital.

    A breakdown showed that the company planned to spend N704 million to develop its warehouse facilities on the Lagos-Ibadan Expressway and at the Murtala Muhammed International Airport Cargo Terminal. It would use N201.65 million to purchase trucks. Also, a total of N154.29 million would be used to improve the group’s information and communication technology (ICT) and Enterprise Resource Planning Solution while the balance of N250 million would serve as working capital.

    Chairman, Red Star Express Plc, Alhaji Suleiman Barau, said the success of the rights issue would enable the company to implement key initiatives that will enhance its ability to achieve sustainable growth and value creation for all shareholders.

    “By accepting your rights, you will be reinforcing your support for Red Star to explore new opportunities required to enhance the company’s ability to achieve sustainable growth and value creation for all shareholders,” Barau, a formal Deputy Governor of Central Bank of Nigeria (CBN), said.

    Red Star Express has three subsidiaries – Red Star Freight Limited; Red Star Logistics Limited and Red Star Support Services Limited, as well as Red Star Express, a licensee of FedEx, world’s leading air express company with over 650 aircrafts and more than 270 delivery destinations globally.

    FedEx has consistently been rated among the top 10 most admired companies in the world over the past 10 years.

  • Transcorp mulls restructuring as profit drops by 82%

    Transcorp mulls restructuring as profit drops by 82%

    Taofik Salako, Capital Market Editor

     

    TRANSNATIONAL Corporation of Nigeria (Transcorp) Plc is considering a major restructuring of its businesses after the conglomerate saw steep declines in incomes and profitability.

    The Board of Directors of the conglomerate has indicated that it would be seeking the approval of their shareholders to undertake restructuring of the conglomerate.

    At the annual general meeting of the conglomerate later this month, shareholders are expected to consider and vote on a resolution authorising the directors to “carry out restructuring, reorganisation, or reconstruction of the company or a combination of any of such actions or other business arrangements as they deem appropriate”.

    The board is also seeking to be empowered to consider various options, including investing in, acquiring or divesting from any business or entity by way of a scheme or otherwise.

    Shareholders are expected to authorise the board to take steps and do all acts that they deem necessary in furtherance of restructuring upon such terms and conditions that the directors may deem appropriate.

    Transcorp cut its dividend payout by half after net profit dropped by 82 per cent in 2019. Key extracts of the audited report and accounts of Transcorp for the year ended December 31, 2019 showed declines in all key performance indicators. Turnover dropped from N104.16 billion in 2018 to N76.35 billion in 2019. Profit before tax slumped to N7.9 billion in 2019 as against N22.4 billion in 2018. Profit after tax also dropped from N20.63 billion in 2018 to N3.70 billion in 2019. Earnings per share consequently declined from 23 kobo in 2018 to 4.0 kobo in 2019.

    The Board of Directors has recommended payment of a dividend per share of one kobo for the 2019 business year compared with a dividend per share of two kobo paid for the 2018 business year.

    The group’s performance was  impacted by the slowdown in its hospitality business. Transcorp Hotels Plc, a publicly quoted subsidiary of the conglomerate, recorded net profit of N614 million in 2019 as against N3.71 billion in 2018. Profit before tax for the year ended December 31, 2019 had dropped from N5.04 billion in 2018 to N1.12 billion in 2019. Turnover however rose from N17.43 billion in 2018 to N20.41 billion in 2019. Transcorp Hotel declared a dividend per share of 7.0 kobo for the 2019 business year.

    The steep decline in 2019 represented a surprise reversal for the conglomerate, which had shown high growth rates in the previous year. The audited report and accounts for the year ended December 31, 2018 had shown that Transcorp’s turnover rose by 30 per cent while profits before and after tax grew by 82 per cent and 94 per cent.

    Group turnover posted a record growth to N104.2 billion in 2018 compared with N80.28 billion in 2017. Gross profit rose from N36.42 billion in 2017 to N48.25 billion in 2018. Profit before tax increased to N22.4 billion as against N12.3 billion while profit after tax jumped from N10.61 billion in 2017 to N20.63 billion in 2018.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the conglomerate’s power subsidiary, Transcorp Power Limited, would be investing as much as $2.5 billion in power projects to help boost power supply in Nigeria.

    He said the company has so far injected about $1 billion in projects with a combined capacity of 700 megawatts while the company is also bidding for Afam Electricity Generation Company, which operates a natural-gas fired power generation plant in southern Rivers State.

    Transcorp, one of the largest publicly quoted conglomerates, has businesses in the power, hospitality, agribusiness and oil and gas sectors. Its notable businesses include Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power and Transcorp Energy.

     

  • Ondo lists N14.8b bond on NSE

    Ondo lists N14.8b bond on NSE

    By Taofik Salako, Capital Market Editor

     

    Ondo State yesterday listed its N14.8 billion bond on the Nigerian Stock Exchange (NSE), paving way for the bond to be traded on the secondary market. A total of 14.8 million units of N1,000 nominal value was listed at par.

    The N14.80 billion seven-year 13 per cent series 1 fixed rate bond was issued under the state’s N50 billion medium term bond programme. Issued on January 17, 2020, the bond carries a coupon of 13 per cent and will mature on January 17, 2027.

    The coupon for the bond is payable twice a year, payable in arrears in the sixth and 12th month yearly from the Issue date up to the maturity date. The bond is rated ‘A’ while Ondo State government has a rating of ‘BBB’.

    The bond was raised through a book building, which opened on December 27, last year and closed three days later.

     

  • Anambra, BudgIT partner on fiscal transparency

    Anambra, BudgIT partner on fiscal transparency

    By Taofik Salako, Capital Market Editor

     

    Anambra State has signed a memorandum of understanding (MoU) with BudgIT on open budget system that aims to promote fiscal transparency in the state.

    This initiative is with the support of the Rule of Law and Anti-corruption (RoLAC) programme funded by the European Union being implemented by the British Council in five states; Adamawa, Anambra, Edo, Kano and Lagos.

    Anambra State government went a step further, having signed up to Open Government Partnership (OGP), to finalise its OGP State Action Plan (SAP) 2019-2021, as well as the Anambra State Anti-corruption Strategy (ANSACS). The state launched both initiatives after the signing of the MoU with BudgIT.

    BudgIT, through Open Alliance, has been at the forefront of a subnational transparency campaign that encourages and supports states to sign up to the OGP, to foster fiscal transparency, access to information, citizens participation and innovation needed for inclusive development and efficient service delivery for its citizens.

    Read Also: BudgIT, others, seek amendment of UBEC Act

    With the step Anambra State has taken, it has become the sixth state in Nigeria to have an approved SAP.

    Anambra is one of the 13 states to sign on to OGP initiative, but the eighth state to develop a State Action Plan (SAP). This means that five states are yet to develop or approve a plan that captures the commitments of the government and citizens to be co-implemented by state and non-state actors in the co-creation process under the OGP.

    Principal Lead, BudgIT, Gabriel Okeowo said BudgIT was glad to work with the Anambra State Government and citizens to achieve a transparent fiscal system by supporting the state with technical resources to make its budget more open, develop citizens’ budget and a web-based feedback mechanism for citizens participation as well as enlist the state on a national web portal where all states financial documents will be published for increased access and citizen’s participation in the governance process.

    BudgIT calls on other states to be bold in their commitment to an open and inclusive government that encourages increased confidence in government and foster development at the subnational level.

     

  • UACN’s core investor acquires more shares

    UACN’s core investor acquires more shares

    By Taofik Salako, Capital Market Editor

     

    Amajor shareholder in UAC of Nigeria (UACN) Plc, Themis Capital Management, has acquired additional shares in the conglomerate in a transaction that may see Themis Capital Management emerging as the largest single shareholder of the 141-year-old conglomerate.

    Transaction reports indicated that Themis Capital Management acquired about 0.5 per cent new equity stake in UACN in several deals involving 14.28 million ordinary shares of 50 kobo each valued at an average price of N10. The shares, valued at N142.8 million, were acquired through the Nigerian Stock Exchange (NSE).

    UACN’s Group Managing Director (GMD), Mr Folasope Aiyesimoju, is the founder of Themis Capital Management, an investment firm focused on concentrating capital and talent on high-potential opportunities in Sub-Saharan Africa. Aiyesimoju assumed position as the GMD on April 1, 2019.

    Read Also: Foreign investors still jittery over economic uncertainties

     

    Themis Capital Management and two others- Stanbic IBTC Nominees and Blakeney GP 111 Ltd had in 2017 emerged as the three major shareholders in the conglomerate with more than five per cent equity stake. Prior to this, Stanbic Nominees Nigeria was the only shareholder with more than five per cent equity stake.

    The 2017 post-recapitalisation filing had indicated that Themis Capital Management has the largest equity stake of about 8.06 per cent. Stanbic IBTC Nominees had 7.8 per cent while Blakeney GP 111 Ltd had 5.8 per cent.

    Nigeria’s oldest surviving business, UACN started business in Nigeria in 1879, well ahead of the 1914 amalgamation that created the  Nigeria.

    With 10 subsidiaries in key sectors of the Nigerian economy, the UACN Group consists of several active companies spreading through manufacturing, services, logistics and real estate sectors of the Nigerian economy.

    These include four quoted subsidiaries-CAP Plc, UACN Property Development Company (UPDC) Plc, Livestock Feeds and Portland Paints and Products Nigeria Plc; in addition to the parent company, UACN, which was listed in 1974. UPDC Real Estate Investment Trust, which is also quoted on the NSE, is a subsidiary of UPDC.

    UACN acquired Livestock Feeds and Portland Paints in 2013. Other members of the group included UAC Foods Limited, UAC Restaurants Limited, MDS Logistics Plc, Warm Spring Waters Nigeria Limited, Grand Cereals Limited, and Unico CPFA Limited.

  • Neimeth grows profit by 83%

    Neimeth grows profit by 83%

    By Taofik Salako, Capital Market Editor

     

    Neimeth International Pharmaceuticals Plc is riding on the strength of operating and finance efficiency to grow its bottom-line as the pharmaceutical company continues to improve its market share in the highly competitive healthcare sector.

    Key extracts of the full-year audited report and accounts for the year ended September 30, 2019 and the first quarter of this business year ended December 31, 2019 showed that the company sustained impressive growth in both sales and profitability.

    The audited report and accounts of Neimeth International Pharmaceuticals showed that the company recorded modest growth in sales but considerable improvement in operating efficiency boosted the profitability of the company.

    Administrative expenses dropped by N168 million from N543 million in 2018 to N375 million in 2019 business year, representing a 30.9 per cent decrease. Operating profit rose by 47.9 per cent to N413.38 million in 2019 as against N279.42 million in 2018.

    Finance costs also declined from N112.96 million to N108.9 million. Profit before tax jumped by 82.9 per cent from N166.46 million in 2018 to N304.44 million in 2019.

    After taxes, net profit increased by 48.7 per cent from N148.02 million to N220.15 million. With these, earnings per share rose by 50 per cent to 12 kobo in 2019 as against 8.0 kobo in 2018.

    The top-line had sustained steady growth as turnover rose from N2.27 billion in 2018 to N2.37 billion in 2019. Gross profit also indicated similar modest growth rising from N1.16 billion in 2018 to N1.20 billion in 2019.

    The company’s balance sheet also showed considerable improvements as total assets grew by 19 per cent to N2.75 billion in 2019 compared with N2.31 billion in 2018. Shareholders’ funds improved by 24.6 per cent from N858.83 million to N1.07 billion.

    Performance ratios underscored significant improvements in the profitability of the company. While gross profit margin dropped from 51.1 per cent in 2018 to 50.6 per cent in 2019 due to industry-wide headwinds, operating profit margin, which denotes the company’s managerial ability to curtail headwinds and drive core business operations profitably, improved by five percentage points from 12.3 per cent in 2018 to 17.4 per cent in 2019.

    Pre-tax profit margin-which measures untaxed profit per unit of sales, nearly doubled from 7.3 per cent in 2018 to 12.8 per cent in 2019. Net profit margin, after taxes, also improved from 6.52 per cent in 2018 to 9.28 per cent in 2019.

    The first quarter report for the three-month period ended December 31, 2019 showed that turnover leapt by 167.1 per cent to N606.5 million compared with N227.07 million recorded in comparable period of 2018.

    Gross profit quadrupled by 465.6 per cent from N53.52 million to N302.71 million. The company replaced operating loss of N119.3 million in December 2018 with operating profit of N111.68 million by December 2019.

    The bottom-line turned positive with a net profit of N82.65 million in December 2019 as against net loss of N139.16 million in December 2018.

    Earnings per share improved from a negative of 8.0 kobo to a positive of 4.35 kobo, showing a greater prospect for shareholders’ return in 2020. Total assets and shareholders’ funds also improved to N2.90 billion and N1.15 billion  last December.

    Read Also: Jaiz Bank grows profit by 134%

     

    The sustained growth further strengthened the outlook of the healthcare company. Neimeth had declared a scrip dividend of 10 per cent for the 2018 business year.

    The company distributed about 172.65 million ordinary shares of 50 kobo each as bonus shares to shareholders on the basis of one bonus share for every 10 ordinary shares held.

    Managing Director, Neimeth International Pharmaceuticals Plc, Matthew Azoji, said the results were evidence that the company has regained its momentum and steadily growing its market share.

    He said the company’s medium term strategic plan aims at building on the enviable pedigree of the six decades old company unto a new era of greater achievements for stakeholders.

    “Our strategic plan is to reposition the company to play greater roles in the healthcare industry, deliver better returns on investment to shareholders and greater benefits to all other stakeholders,” Azoji said.

    He assured that the management of the company would continue its deliberate strategy of cost management to ensure that top-line gains translate into improvement in returns to shareholders.

    Azoji, who was named among the top 25 CEOs in Nigeria by BusinessDay Newspaper, said sustained growths across the quarters and over the past two years are results of early gains of strategic initiatives to drive growth and profitability.

    “In the new year and beyond, the company will record greater strides as we expect ongoing implementation of more strategic initiatives to firm up sales and improve our returns on investment,” Azoji said.

    He pointed out that Neimeth had in 2019 won Sectoral Leadership Award for the healthcare (pharmaceuticals) sector at the Nigerian stock market. The annual award which is based on the performance of quoted companies on the Nigerian capital market was organised by Pearl Awards.

    Neimeth is over 61 years old as a business in Nigeria. It transited from an arm of a foreign transnational, Pfizer Inc. to Neimeth International Pharmaceuticals Plc in May 1997 through a management buyout of the US investors to become a wholly owned indigenous company.

    Since then, the company has metamorphosed into a leading brand in the Nigerian healthcare industry with products that meet international standards.

     

  • Goxi MicroInsurance launches operation

    By Taofik Salako, Capital Market Editor

     

    Goxi MicroInsurance Company  Limited has formally launched its operations as the first stand-alone micro-insurance company licensed by the National Insurance Commission (NAICOM) promises to deepen insurance penetration.

    At the formal launch in Lagos, Chairman, Goxi MicroInsurance Company Limited, Dr Godwin Ehigiamusoe said the firm aimed to foster greater insurance penetration especially within micro and small businesses.

    According to him, the targets of Goxi MicroInsurance Company Limited are the low-income people and micro and small enterprises that are highly vulnerable and often overlooked by the large-ticket operators.

    “It is our conviction that low-income people and owners of micro and small businesses require robust risk mitigation service by the nature of their slim economic base.

    The death of a bread winner in a low-income household can be devastating. Fire in the market place can wipe out the entire assets of an owner of micro and small businesses.

    Access to insurance cover is therefore vital to efforts to address poverty and expand the frontiers of finance, “ Ehigiamusoe said.

    He noted that low-income Nigerians in rural and urban communities need a bouquet of insurance cover for their lives, farms, shops and assets for viability and effectiveness.

    Read Also: Stock market unveils special insurance for investors

     

    According to him, microfinance and microinsurance are complementary services that are very effective in addressing the challenge of poverty because while access to finance assists low income people to build up assets, insurance services protect these assets.

    He said Goxi MicroInsurance would be open to partnership with community-based associations and co-operative societies.

    Managing Director, Goxi MicroInsurance Company Limited, Mr Shina Gbadegesin explained that the company would operate as a composite microinsurer with its base within Lagos State.

    He noted that while the concept was not completely new in Nigeria, the new development of licensing of microinsurance firm as a stand-alone company by NAICOM was a new bold step.

    He assured that the company has a team of brilliant professionals with adequate experience to service the target customers while it has also made substantial investment in technology to enable smooth partnership in delivering value to its customers.

    He Gbadegesin urged various associations, aggregators, cooperative societies, microfinance banks and microfinance institutions to partner with the company in order to provide microinsurance services to their members.

     

  • Stockbroking firms brace for demutualisation

    By Taofik Salako, Capital Market Editor

     

    Stockbroking firms under the aegis of the Association of Securities Dealing Houses of Nigeria (ASHON) have reconstituted its governing council ahead of the expected demutualisation of the Nigerian Stock Exchange (NSE).

    ASHON’s members are the largest group of members of the NSE and are expected to form same largest group of owners after demutualisation.

    A court-ordered meeting of members of the Exchange where the Scheme of Arrangement shall be considered for approval, among others has been scheduled for March 3, 2020 at Civic Centre, Victoria Island, Lagos.

    Demutualisation is the process of conversion from a member-owned mutual organisation to a public limited liability company owned by shareholders.

    As a prelude to the emergence of the reconstituted Council, ASHON had in October 2019 conducted election into its council during the 10th annual general meeting (AGM) of the association.

    The reconstitution was to enable the association to reflect changes due to the leadership of the Lagos Commodities and Futures Exchange (LCFE), which it promoted.

    Under the reconstituted council, ASHON’s chairman, Chief Oyinyechukwu Ezeagu retained his position as he is still serving his tenure. Mr Akin Akeredolu-Ale, the First Vice Chairman exited the council by virtue of his new role as the Chief Executive Officer of LCFE.

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    The former Second Vice Chairman, Mr Sam Onukwue emerged the First Vice Chairman while a council member, Mr Sehinde Adenagbe scaled up the corporate ladder to emerge the Second Vice President.

    Other council members included Mrs Bunmi Ajayi, Ms Ifeyinwa Ejezie, Mr Dare Adejumo and Mr Andy Tsaku while Reverend Emeka Madubuike remains the ex-officio member.

    Ezeagu had explained that ASHON had embarked on series of initiatives to prepare for demutualisation of the NSE.

    “We represent firms that will transit from members to shareholders of the Exchange.  We are gearing up to this new responsibility and the benefits to flow from the laudable venture. Our members are being repositioned to operate under the demutualised Exchange,” Ezeagu said.

    He outlined that the association had embarked on strategic restructuring to bolster members’ image, consolidate a formidable team and review internal processes among others.

    Ezeagu noted that as the process of demutualisation of the NSE is approaching a climax, it is important that members of the Exchange prepare themselves for the change in status which expectedly comes with some responsibilities and new realities.

     

  • NSE joins executive of FISD

    By Taofik Salako, Capital Market Editor

     

    The Nigerian Stock Exchange (NSE) has been appointed as executive committee member of the Financial and Information Services Association (FISD), a division of the Software and Information Industry Association (SIIA).

    SIIA is an umbrella association representing more than 800 technology, data and media companies globally. Industry leaders work through SIIA’s divisions.

    As a division, FISD is a global forum for industry participants to address issues and challenges that impact the key players in the value chain including consumer firms, third party groups, and data providers.

    Through in-person and online business development opportunities, peer networking, corporate education, intellectual property protection and government relations, FISD supports members to identify the trends that will shape the industry segment and create educational opportunities and initiatives to address them.

    The Executive Committee of FISD, which is an equitable representation by each of the three FISD broad constituencies — exchanges, vendors and user firms, is charged with representing FISD membership and setting the broad direction for FISD activities.

    The committee will review and approve new initiatives, provide guidance to working groups and the FISD/SIIA staff, identify priorities for the FISD budget and staff resources, and select new Executive Committee members when vacancies open.

    The appointment which is for a two-year term, beginning January 2020, will have Mr. Olufemi Balogun, Head, Market Services Department of the NSE representing the Exchange.

    The appointment was communicated to NSE by Tracey Shumpert, Director of Member Services on February 4, 2020.

    Speaking on the appointment, Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema said the appointment was a testament to the Exchange’s commitment to ensuring good data governance and providing excellent customer service to its growing clients.

    Read Also: Stock Exchange opens new window for SMEs

     

    “We are inspired to leverage the platform of the FISD to continue to provide innovative data solutions to capital market operators and the investing public,” Onyema said.

    He noted that the NSE has been a member of FISD since 2012 adding that the Exchange will continue to pursue active membership in other international and regional organisations that promote the development and integration of global best practices across its operations.

    “Our membership of FISD aligns with our commitment to provide local and international stakeholders with accurate, reliable and timely market data.

    We have a suite of Market Da ta products that provide professionals and non-professionals such as the market intermediaries, issuers and investors, with easy access to market information for quick analysis on their investment.

    We are, therefore, pleased with this appointment as it strategically positions the NSE to further influence Market Data industry policies,” Onyema said.

    According to him, with its position as a data hub for innovation, the NSE continues to invest in the latest technology tools and data products to provide value to its clients, the latest product being the Investors Relations Data pack, launched in July 2019.

    The Investors Relations Data Pack is an innovative and dynamic webpage integrated with key market data, corporate news and disclosures, for corporate issuers. It is a necessary tool required by issuers to improve their engagement with investors.

  • Jaiz Bank grows profit by 134%

    By Taofik Salako, Capital Market Editor

     

    Jaiz Bank Plc, Nigeria’s first non-interest commercial bank, recorded well-rounded performance last year as considerable growth in the top-line and improved margins doubled the bottom-line and shot the above forecasts.

    Key extracts of management accounts for the 12-month period ended December 31, 2019 released at the Nigerian Stock Exchange (NSE) showed that gross earnings rose by 68.3 per cent. Gross profit increased by 73 per cent while pre and post tax profits leapt by 133.9 per cent and 114.1 per cent respectively.

    Gross earnings rose from N8.74 billion in 2018 to N14.71 billion in 2019. Gross profit increased from N6.82 billion to N11.8 billion. Profit before tax jumped from N897.70 million to N2.10 billion.

    After taxes, net profit leapt to N1.79 billion in 2019 as against N834.4 million in 2018. Earnings per share thus increased by 114.1 per cent from 2.83 kobo in 2018 to 6.06 kobo in 2019.

    Underlying performance ratios indicated that the company’s overall performance was driven by both increased market share and increasingly efficient operating system.

    Gross profit margin improved from 78 per cent in 2018 to 80.2 per cent in 2019. Pre-tax profit margin, which measures the average unit of profit per unit of sale, increased by four percentage points from 10.3 per cent in 2018 to 14.3 per cent in 2019.

    Net profit margin, which shows the net value creation for shareholders, improved from 9.5 per cent to 12.2 per cent.

    The performance in 2019 placed the company ahead of its projections, raising optimism that it could surpass its five year medium-term forecasts.

    At an interactive session with the investing public at the NSE, directors of Jaiz Bank had unveiled a five-year plan as it seeks to achieve its overall vision of being the leading non-interest financial institution in Sub Saharan Africa (SSA).

    Jaiz Bank had projected gross income of N12.59 billion for 2019 while pre and post tax profits were estimated at N2.03 billion and N1.42 billion respectively.

    According to the five-year financial forecast, total income is expected to be about N81.17 billion while profit after tax is projected at N11.09 billion for the five-year period.

    Gross income is expected to rise to N15.73 billion, N19.27 billion and N23.51 billion in 2020, 2021 and 2022 respectively. Profit before tax is projected to rise to N3.01 billion, N4.03 billion and N5.47 billion in 2020, 2021 and 2022 respectively.

    After taxes, net profit is expected to rise to N2.11 billion in 2020 and rise consecutively to N2.82 billion and N3.83 billion in 2021 and 2022 respectively.

    Under the plan, the balance sheet of the bank is expected to increase consecutively over the years. Total assets is projected at N182.6 billion, N220.02 billion and N262.80 billion in 2020, 2021 and 2022 respectively.

    Deposit is projected to rise consecutively to N142.81 billion, N177.09 billion and N216.05 billion in 2020, 2021 and 2022 respectively. Shareholders’ fund is also projected to increase to N35.23 billion by 2022.

    Managing Director, Jaiz Bank Plc, Mr. Hassan Usman, said overall vision of the bank is to become the leading non-interest financial institution in Sub Saharan Africa.

    He said the bank has been positioned to sustain its growth trajectory, pointing out that the bank has the necessary resources to achieve its growth targets.

    Usman said the bank’s growth strategy of focussing on the real sector, though painstaking, will ensure sustainable growth and better returns over the years.

    Read Also: Infinity Trust Mortgage Bank grows net profit by 28%

     

    According to him, Jaiz Bank wants to develop small and medium enterprises (SMEs), grow with them and support them not only for profit making but to ensure the country achieves real growth.

    “We shall continue to internally develop new customers, new markets and new product for both our physical and virtual channels.

    We remain committed to continuous up-scaling of our governance mechanism to meet the highest operating standards. Cost efficiency is at the heart of our value creation model. We shall strive to be a low cost operator,” Usman said.

    He noted that while the bank would continue to expand its operations across the country by opening more branches, it will significantly leverage on technology to reach the nooks and crannies of the country and bring the semi-banked and unbanked population into the formal economy.

    Jaiz Bank was created out of the former Jaiz International Plc which was set up in 2003 as a Special Purpose Vehicle (SPV) to establish Nigeria’s first full-fledged non-interest bank.

    The bank is owned by some 27,000 shareholders including the Islamic Development Bank (IDB). It obtained a regional operating licence to operate as a non-interest bank from the Central Bank of Nigeria (CBN) on November 11, 2011 and began full operations as the first non-interest bank in Nigeria on January 6, 2012.

    In 2016, it obtained the national banking licence from the CBN and started to rapidly spread its network across the country.

    Jaiz Bank recorded another milestone on February 9, 2017 as the first non-interest financial institution to be listed on the NSE with the admission of the entire issued share capital of the bank to the main board of the exchange.