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Tag: JAIZ Bank

  • Recapitalization: Jaiz Bank set to targets N70bn capital base by year-end

    Recapitalization: Jaiz Bank set to targets N70bn capital base by year-end

    Jaiz Bank, a non-interest financial institution, is poised to grow its capital base to N70 billion by the end of this year. 

    Jaiz Bank and other non-interest banks hoping to achieve national status have till 31st March, 2026 to record N20 billion capital base as directed by the Central Bank of Nigeria (CBN) under its ongoing banking system recapitalization.

    This disclosure was made by the Chairman of the Board of Directors, Mustapha Bintube, during a send-off ceremony held in Abuja for 11 retired board members, including the bank’s pioneer chairman, Alhaji Umar Abdul Mutallab.

    In his remarks, Alhaji Bintube noted the bank’s financial performance, noting that Jaiz Bank made a profit of N11 billion in 2023. He revealed that as of June 30, 2024, the bank had already surpassed this profit figure, indicating robust growth and operational success. 

    Bintube also revealed the bank’s expansion plans from its initial three branches in Abuja, Kaduna, and Kano to a current total of 54 branches, with plans to reach 60 branches by year-end.

    “Our major dream is to expand our presence globally,” Bintube stated, reflecting on the bank’s humble beginnings in 2012 with an initial capital of N6 billion. He attributed the bank’s success to its dedicated team and strategic partnerships, which have enabled it to grow and thrive in the competitive financial sector.

    Former chairman, Dr. Umar Abdul Mutallab, in his address, expressed his pride in Jaiz Bank’s achievements as Nigeria’s first non-interest Islamic bank. He commended the efforts of various institutions, particularly the Islamic Development Bank (IDB), which played a crucial role in the bank’s establishment. 

    Dr. Mutallab recounted the challenging early days when Jaiz Bank’s promoters had only N4 billion, and it was the timely intervention of Africa’s richest man, Alhaji Aliko Dangote, who provided N1 billion to meet the N5 billion required for registration, that saved the venture from collapse.

    Dr. Mutallab also praised the former Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, for his encouragement and support in realizing the dream of Jaiz Bank. 

    He took the occasion to acknowledge and appreciate the contributions of other individuals and institutions, both living and deceased, who have supported the bank’s journey.

    Read Also: Jaiz Bank sustain impressive performance growths

    “Jaiz Bank sees itself as a major Islamic bank in Nigeria,” Dr. Mutallab asserted, urging the current management to continue striving for excellence and expansion. He expressed confidence in the bank’s future, emphasizing the importance of perseverance and strategic vision in achieving its goals.

    All the speakers agreed that Jaiz Bank’s commitment to non-interest banking principles and its focus on ethical financial services have positioned it as a trailblazer in Nigeria’s banking sector. 

    As the bank looks forward to reaching new heights, it remains dedicated to serving its customers with integrity and innovation.

  • Jaiz Bank sustain impressive performance growths

    Jaiz Bank sustain impressive performance growths

    • Pre-tax profit hits N6b in Q1

    Nigeria’s premier and leading non-interest bank, Jaiz Bank Plc sustained impressive growths across key performance indicators in the 2023 business year and first quarter of 2024, raising prospects that the bank would surpass its previous performance in the new business year.

    Key extracts of the audited report and accounts of Jaiz Bank for the full-year ended December 31, 2023 and the interim report for the three-month period ended March 31, 2024 released at the Nigerian Exchange (NGX) showed significant growths in actual and underlying performance indices.

    The full-year report showed that gross earnings rose by 42 per cent from N33.2 billion in 2022 to N47.2 billion in 2023. Profit before tax jumped by 66.7 per cent from N6.63 billion in 2022 to N11.05 billion in 2023. After taxes, net profit grew by 63.4 per cent from N6.88 billion to N11.24 billion. Earnings per share thus rose by 63.3 per cent to 32.53 kobo in 2023 as against 19.92 kobo in 2022.

    The balance sheet of the bank expanded by 52.7 per cent from N379.82 billion in 2022 to N580.13 billion in 2023. Customers’ current deposit increased by 59.41 per cent from N140.81 billion to N224.46 billion. Also, customers’ unrestricted investment accounts rose from N150.6 billion to N242.1 billion. Shareholders’ funds rose by 32 per cent from N29.8 billion to N39.3 billion.

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    The first quarter 2024 results showed a stronger start to the new business year with pre-tax profit rising by 275 per cent from N1.6 billion in first quarter 2023 to N6 billion in first quarter 2024. Profit after tax jumped by 300 per cent to N5.84 billion in first quarter 2024 as against N1.46 billion in first quarter 2023. Gross earnings had grown by 67 per cent from N9.88 billion to N16.51 billion. Earnings per share consequently increased from 4.61 kobo in first quarter 2023 to 16.92 kobo in first quarter 2024.

    The balance sheet also emerged stronger with total assets closing March 2024 to N670.98 billion compared with N580.13 billion recorded in December 2023. The bank’s finance and investment portfolio grew by 16 per cent from N357 billion in December 2023 to N415 billion in March 2024. Deposit liabilities also increased by 11 per cent from N466 billion in December 2023 to N518 billion in March 2024.

    Underlying ratios showed improved profitability and operating efficiency, with return on average equity (ROE) of 61.38 per cent. Return on average assets (ROA) stood at 3.60 per cent while capital adequacy ratio (CAR) stood at 15.91 per cent.

    Managing Director, Jaiz Bank Plc, Haruna Musa said the bank’s 2023 and first quarter 2024 results reflected the commitment of the board and management to continually add value to customers through bespoke ethical finance.

    He said the bank was well-positioned to compete effectively on all fronts and meet customers’ needs through fair and ethical financing.

    According to him, despite the challenging operating environment, the bank continues to enhance its performance across all indices, recording significant growth in both financial and non-financial metrics.

    “We remain on track to become the leading ethical bank in Africa. We will continue to focus on strengthening our relationships with our customers while attracting new ones, supporting not just individuals and businesses but also our communities through digital platforms and innovative products and services.

    “We are confident in our journey to lead the future of ethical finance in Africa and will not relent in our commitment to excellence while delivering long-term value to all stakeholders,” Musa said.

  • Jaiz Bank eyes N10.05b from private investors

    Jaiz Bank eyes N10.05b from private investors

    • Rights issue coming

    Nigeria’s premier and largest non-interest bank, Jaiz Bank Plc, yesterday completed pre-issuance processes for a N10.05 billion private placement as part of a multi-prong strategic recapitalisation aimed at strengthening the capital base of the bank.

    At the completion board meeting yesterday in Abuja, the board of the bank and parties to the issuance signed off the offer documents, after securing prior approvals of shareholders and relevant regulators.

    Jaiz Bank is issuing 10.048 billion ordinary shares of 50 kobo each at N1 per share to private investors.

    Chairman, Jaiz Bank Plc, Alhaji Mohammed Bintube, said the private placement was in line with the bank’s target to sustain its growth trajectory and ensure it remains well-capitalised in line with its capital management strategy. 

    He said the net proceeds of the capital raising exercise will be deployed to improve service delivery on the bank’s various platforms.

    According to him, the additional capital would support the bank’s growth drive to achieve its five-year strategic objectives.

    “Qualified investors should take advantage of this opportunity to invest as the bank seeks to expand to other financial services via a financial holding company structure subject to regulatory approval in the future,” Bintube said.

    He added that the bank would soon provide opportunity to existing shareholders to invest additional capital in the bank through a rights issue.

    Regulatory filing at the Nigerian Exchange (NGX) indicated that Jaiz Bank plans to float a rights issue of about 5.41 billion ordinary shares of 50 kobo each at offer price of N1 per share. The rights issue will be pre-allotted on the basis of 87 new ordinary shares for every 250 ordinary shares held as at the close of business on Friday, October 6, 2023.

    Global rating agency, Fitch Ratings, in its latest ratings of Nigerian banks, affirmed Jaiz Bank as one of the several Nigerian banks with intrinsic strengths to maintain stable business outlook, despite macroeconomic challenges.

    In its latest ratings report, Fitch affirmed Jaiz Bank’s ratings of Long-Term IDR at ‘B-‘ as well as the National Long-Term Ratings with Stable Outlook.

    According to Fitch, the affirmation of the bank’s Long-Term IDRs and National Ratings reflects the rating agency’s view that the bank is likely to remain compliant with its respective regulatory minimum capital adequacy ratio (CAR) requirements despite the devaluation, with sufficient buffers and pre-impairment operating profits to tolerate a further moderate naira depreciation and the second-order effects of a challenging economic environment on loan quality.

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    The report noted that the IDRs and National Ratings of Jaiz Bank was driven by its “standalone creditworthiness”, as expressed by its viability rating (VRs).

    Jaiz Bank has projected significant growths in incomes and profitability in the first quarter of 2024 with increasing operating efficiency expected to add nearly a quarter to the bank’s profit-making capability.

    In its latest forecast, the management of the bank indicated that pre-tax profit margin could rise to 27.82 per cent in the first three months of 2024, about eight percentage points above 20.22 per cent recorded in its last interim report and accounts for the third quarter 2023. Post-tax profit margin is expected at 25.03 per cent in first quarter 2024.

    The forecast, obtained at the NGX, projected profit before tax of N4.78 billion, with gross earnings expected at N17.18 billion for the three-month period ended March 31, 2024. Profit after tax is estimated at N4.3 billion.

    The forecast outlined a robust earnings outlook for the bank as it continues to expand its operations and consolidate market share.

  • Jaiz Bank grows profit by 74% in third quarter

    Jaiz Bank grows profit by 74% in third quarter

    Nigeria’s premier and largest non-interest bank, Jaiz Bank Plc, recorded double-digit growths across key performance indicators in the third quarter with pre-tax profit rising by about 74 per cent to N6.68 billion.

    Key extracts of the interim report and accounts of Jaiz Bank for the nine-month period ended September 30, 2023 showed that the leading alternative bank grew its top-line by 39.6 per cent with gross earnings of N33.04 billion in third quarter 2023 as against N23.67 billion in third quarter 2022.

    Total deposits rose by 63 per cent to N405 billion as against N248 billion recorded in the corresponding period in 2022. The bank’s total assets also jumped by 68 per cent to N546 billion in September 2023.

    The management of the bank stated that the results reflected the bank’s contribution to the growth of Nigeria’s economy through its’ Islamic financing and investment activities in the real sector.

    Jaiz Bank, operating under Islamic banking principles, primarily derives its earnings from investing and financing activities

    According to the management, Jaiz Bank’s strong financial performance is a positive indicator of its continued growth and success in the banking sector.

    “The bank remains resolute in leveraging on continued investment in its most valued asset, its human resources, advanced technological infrastructure and more efficient processes in serving its ever growing customer base,” Jaiz Bank stated.

    Market analysts said the third quarter results further strengthened the outlook for Jaiz Bank, which plans to raise about N5.41 billion from its shareholders to bolster its balance sheet to support rapid expansion.

    Jaiz Bank plans to float a rights issue of about 5.41 billion ordinary shares of 50 kobo each at offer price of N1 per share. The rights issue will be pre-allotted on the basis of 87 new ordinary shares for every 250 ordinary shares held as at the close of business on Friday, October 6, 2023.

    Jaiz Bank, the only publicly quoted non-interest bank, has through its professional advisers, already applied to the NGX for the approval and subsequent listing of the rights shares upon completion.

    Most analysts expected the rights issue to be oversubscribed citing Jaiz Bank’s impressive performance over the past decade.

    Read Also: Jaiz Bank to raise N5.41b new equity funds from shareholders

    At its last annual general meeting recently in Kano, Jaiz Bank had increased dividend payable to shareholders by 25 per cent after the alternative bank grew net profit by 68.5 per cent.

    The bank paid a dividend per share of 5.0 kobo for the 2022 business year, totaling N1.727 billion. The bank had paid a dividend per share of 4.0 kobo for the 2021 business year.

    Key extracts of the audited report and accounts for the period ended December 31, 2022 had shown double-digit growths across key performance indicators, underlining improvements in incomes and profitability.

    The 12-month report showed that gross earnings rose by 29.4 per cent from N25.84 billion in 2021 to N33.43 billion in 2022. Profit before tax grew by 59.5 per cent from N4.16 billion in 2021 to N6.63 billion in 2022. With tax writeback of N248.54 million in 2022, net profit, grew by 68.5 per cent from N4.08 billion in 2021 to N6.88 billion in 2022. Earnings per share increased by 39.13 per cent to 19.2 kobo in 2022 as against 13.8 kobo in 2021. The issued share capital of the bank had increased from 29.46 billion shares in 2021 to 34.54 billion shares.

    The balance sheet of the bank also expanded by more than one-third with total assets rising by 35.6 per cent to N378.82 billion in 2022 as against N279.27 billion in 2021. Total equity funds also increased from N24.31 billion to N29.80 billion.

    Underlying ratios had shown a generally positive outlook with the bank’s net income margin (NIM) improving from 7.86 per cent in 2021 to 8.29 per cent in 2022. Cost-to-income ratio improved from 75.49 per cent in 2022 to 70.51 per cent. Return on total assets increased from 1.49 per cent to 1.75 per cent. Return on equity also grew from 17.11 per cent in 2021 to 22.25 per cent in 2022. While capital adequacy dropped from 23.66 per cent to 19.50 per cent, liquidity improved from 29.78 per cent to 38.50 per cent.

  • Jaiz Bank to raise N5.41b new equity funds from shareholders

    Jaiz Bank to raise N5.41b new equity funds from shareholders

    Nigeria’s premier and largest non-interest bank, Jaiz Bank Plc plans to raise about N5.41 billion from its shareholders as the alternative market leader seeks to bolster its balance sheet to support rapid expansion.

    Regulatory filing at the weekend indicated that Jaiz Bank plans to float a rights issue of about 5.41 billion ordinary shares of 50 kobo each at offer price of N1 per share.

    The offer price represents about 40 per cent discount on the bank’s closing market price of N1.65 at the Nigerian Exchange (NGX)

    The rights issue will be pre-allotted on the basis of 87 new ordinary shares for every 250 ordinary shares held as at last Friday.

    Jaiz Bank, the only publicly quoted non-interest bank, has through its professional advisers, already applied to the NGX for the approval and subsequent listing of the rights shares upon completion.

    Most analysts expected the rights issue to be oversubscribed citing Jaiz Bank’s impressive performance over the past decade.

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    Jaiz Bank had recorded appreciable growths in the top-line and bottom-line in the first half, with net profit rising by 51 per cent to N3.9 billion within the six-month period.

    Key extracts of the six-month report for the period ended June 30, 2023 showed that profit after tax rose to N3.9 billion in June 2023 compared with N2.4 billion recorded in the corresponding period of June 2022. This implied a net profit margin of 27.3 per cent, within the top-bracket of the industry margins. Gross income rose by 41.9 per cent to N20.3 billion as against N14.3 billion recorded in corresponding period of 2022. Earnings per share rose by 54.9 per cent from 7.34 kobo to 11.3 kobo.

    The bank’s balance sheet also emerged stronger, rising by 19.2 per cent to N452.8 billion in first half 2023 as against N379.8 billion in first half 2022. Deposit liabilities increased by 28.8 per cent from N299.4 billion recorded as at December 2022 to N375.3 billion in June 2023.

    The management of the bank had said the results showed an increase in key revenue lines and a strong performance in other financial metrics, which reinforced the bank’s growth prospects as the leading non-interest bank in Nigeria.

    Jaiz Bank has projected gross earnings of N12 billion for the third quarter of 2023.

    In its latest forecast, the management of the bank indicated that the bank would record considerably higher performance in the third quarter, with higher incomes and profitability.

    The three-month forecast for third quarter 2023 estimated that pre and post tax profits would be N2.40 billion and N2.16 billion. Gross earnings is expected to increase to N12 billion, with financing income of N11.59 billion. Other incomes were projected at N414.69 million. Net operating income is estimated at N8.68 billion, implying net operating margin of 72.33 per cent.

    At its last Annual General Meeting (AGM) recently in Kano, Jaiz Bank had increased dividend payable to shareholders by 25 per cent after the alternative bank grew net profit by 68.5 per cent.

    The bank paid a dividend per share of 5.0 kobo for the 2022 business year, totaling N1.727 billion. The bank had paid a dividend per share of 4.0 kobo for the 2021 business year.

    Key extracts of the audited report and accounts for the period ended December 31, 2022 had shown double-digit growths across key performance indicators, underlining improvements in incomes and profitability.

    The 12-month report showed that gross earnings rose by 29.4 per cent from N25.84 billion in 2021 to N33.43 billion in 2022. Profit before tax grew by 59.5 per cent from N4.16 billion in 2021 to N6.63 billion in 2022. With tax writeback of N248.54 million in 2022, net profit, grew by 68.5 per cent from N4.08 billion in 2021 to N6.88 billion in 2022. Earnings per share increased by 39.13 per cent to 19.2 kobo in 2022 as against 13.8 kobo in 2021. The issued share capital of the bank had increased from 29.46 billion shares in 2021 to 34.54 billion shares.

    The balance sheet of the bank also expanded by more than one-third with total assets rising by 35.6 per cent to N378.82 billion in 2022 as against N279.27 billion in 2021. Total equity funds also increased from N24.31 billion to N29.80 billion.

    Underlying ratios had shown a generally positive outlook with the bank’s net income margin (NIM) improving from 7.86 per cent in 2021 to 8.29 per cent in 2022. Cost-to-income ratio improved from 75.49 per cent in 2022 to 70.51 per cent. Return on total assets increased from 1.49 per cent to 1.75 per cent. Return on equity also grew from 17.11 per cent in 2021 to 22.25 per cent in 2022. While capital adequacy dropped from 23.66 per cent to 19.50 per cent, liquidity improved from 29.78 per cent to 38.50 per cent.

  • Jaiz Bank grows half year profit by 295%

    Nigeria’s pioneer non-interest commercial bank, Jaiz Bank Plc sustained its three-digit profit growth in the first half as net profit leapt by 294.6 per cent to N815.65 million. It had grown net profit by 244 per cent in the first quarter.

    Key extracts of the interim report and accounts of the bank for the six-month period ended June 30, 2019 showed that total revenue rose by 41.2 per cent from N4.47 billion in first half 2018 to N6.31 billion in first half 2019. Gross profit grew by 47.8 per cent to N5.12 billion in first half 2019 as against N3.46 billion recorded in comparable period of 2018. Profit before tax leapt by 292.3 per cent to N966.93 million compared with N231.22 million in corresponding period of 2018 while profit after tax jumped by 294.6 per cent from N206.69 million to N815.65 million.

    The half year report strengthened the growth outlook of the non-interest bank, which had sustained considerable growths in key performance indices in recent period. The three-month report for the period ended March 31, 2019 had shown that gross earnings rose by 38.7 per cent while pre and post-tax profits jumped by 225.08 per cent and 244.19 per cent respectively. Earnings per share rose by 190 per cent.

    The three-month report indicated that gross earnings rose to N2.59 billion in first quarter 2019 as against N1.87 billion in first quarter 2018. Gross profit grew by 51.9 per cent increased from N1.39 billion to N2.11 billion. Profit before tax jumped from N146.57 million to N476.46 million. After taxes, net profit rose to N428.68 million in first quarter 2019 compared with N124.58 million in first quarter 2018. Consequently, earnings per share increased to 1.45 kobo in first quarter 2019 as against 0.50 kobo in corresponding period of 2018.

    Managing Director, Jaiz Bank Plc, Mr. Hassan Usman, said the first half 2019 results further demonstrated that the bank has the capacity to grow sustainably in line with its strategic vision of becoming the leading non-interest bank in Sub-Saharan Africa by 2022.

    He said the bank would maintain steady focus on elements that contributed to improved performance thus far, assuring that the upward growth trend would be improved upon in the remaining period of the financial year.

    In its latest audited report for the year ended December 31, 2018, Jaiz Bank had grown net profit by 55 per cent to N834.37 million. Gross earnings rose by 11 per cent from N7.86 billion in 2017 to N8.74 billion in 2018. Profit before tax increased from N894.01 million to N897.70 million. After taxes, net profit rose from N537.12 million to N834.37 million.

    The balance sheet showed stronger underlying strength during the period. Total assets rose by 24 per cent from N87.31 billion to N108.46 billion. Deposits also grew by 25 per cent from N68.12 billion in 2017 to N85.03 billion in 2018. The non-interest bank expanded its financing and investment activities by 37 per cent to N69.36 billion in 2018 as against N50.79 billion in 2017. Jaiz Bank, as a non-interest bank, makes profit basically from profit-sharing on investments and gains on trading activities.

    Key underlying ratios showed improvements in returns and operational strength of the bank. Return on assets rose by a quarter from 0.6 per cent in 2017 to 0.8 per cent in 2018. While cost-to-income inched up from 85.84 per cent to 87.28 per cent, return on equity improved from 6.54 per cent to 6.85 per cent. Capital adequacy remains considerably above regulatory threshold at 21.13 per cent while liquidity ratio increased by 50 per cent from 18.64 per cent to 27.94 per cent. Staff strength and number of branches also increased by 6.0 per cent and 16 per cent respectively.

    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 license 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 license 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 Nigerian Stock Exchange (NSE) with the admission of the entire issued share capital of the bank to the main board of the Exchange.

    Under its five-year growth plan, Jaiz Bank projects to grow its income and profitability consecutively. 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.

  • NADDC partners Stanbic IBTC, Jaiz Bank on vehicle financing

    The National Automotive Design and Development Council (NADDC) in partnership with Stanbic IBTC Bank, WEMA Bank and JAIZ Bank, are putting finishing touch to a vehicle financing scheme aimed at  increasing  purchasing of locally made vehicles without 100 per cent  down payment.

    The Council said the arrangement will aid easier purchase of vehicles as the Nigerian auto policy places high premium on locally made vehicles as well as a finance scheme that makes vehicles easier for local cosumers.

    NADDC Director-General, JelaniAliyu who spoke at the weekend during the launch of the latest Honda H-RV Automobievehilcle in Abuja, said the initiative will promote the local auto industry.

    He said: “The National Automotive Policy is a set of fiscal incentives that has been developed to support local production of vehicles.

    “The only way we can ensure that Nigeria continues as a successful nation is to provide industrialisation and jobs. The only way we can provide jobs is to grow industries while supporting local and international investors to invest and produce in Nigeria.

    “The importance of the policy cannot be overemphasised as it supports local production. Presently Japanese investors are in Nigeria helping with the production of Made-in-Nigeria and producing in Nigeria. NADDC is also working in partnership with the National Assembly to ensure the automotive policy becomes a law.

    “The government will soon commence construction of seven automotive training centres in different geo political zones across the country, so young Nigerians can be trained on how to maintain vehicles with some measure of sophistications as most cars now have some measure of sophistication and some embedded ICT features in it.”

    “The vehicle we are launching today is perfect for this environment in terms of higher ground clearance with very good features.

  • Jaiz Bank grows Q1 profit by 244%

    Jaiz Bank Plc recorded well-rounded performance in the first quarter of this year as Nigeria’s pioneer non-interest commercial bank continued to improve its cost efficiency and risk management.

    Key extracts of the three-month report for the period ended March 31, 2019 released yesterday at the Nigerian Stock Exchange (NSE) showed that gross earnings rose by 38.7 per cent while pre and post-tax profits jumped by 225.08 per cent and 244.19 per cent respectively. Earnings per share rose by 190 per cent.

    The three-month report indicated that gross earnings rose to N2.59 billion in first quarter 2019 as against N1.87 billion in first quarter 2018. Gross profit grew by 51.9 per cent increased from N1.39 billion to N2.11 billion. Profit before tax jumped from N146.57 million to N476.46 million. After taxes, net profit rose to N428.68 million in first quarter 2019 compared with N124.58 million in first quarter 2018. Consequently, earnings per share increased to 1.45 kobo in first quarter 2019 as against 0.50 kobo in corresponding period of 2018.

    The first quarter performance further consolidated the growth trajectory of the alternative banking pioneer and raised strong prospect of Jaiz Bank substantially surpassing its full-year performance in 2018 in the current business year. The net profit in first quarter 2019 is more than half of the full-year net profit recorded in 2018.

    Jaiz Bank recently released its audited report and accounts for the year ended December 31, 2018, showing 55 per cent growth in net profit to N834.37 million.Gross earnings rose by 11 per cent from N7.86 billion in 2017 to N8.74 billion in 2018. Profit before tax increased from N894.01 million to N897.70 million. After taxes, net profit rose from N537.12 million to N834.37 million.

    The balance sheet showed stronger underlying strength during the period. Total assets rose by 24 per cent from N87.31 billion to N108.46 billion. Deposits also grew by 25 per cent from N68.12 billion in 2017 to N85.03 billion in 2018. The non-interest bank expanded its financing and investment activities by 37 per cent to N69.36 billion in 2018 as against N50.79 billion in 2017. Jaiz Bank, as a non-interest bank, makes profit basically from profit-sharing on investments and gains on trading activities.

    Key underlying ratios showed improvements in returns and operational strength of the bank. Return on assets rose by a quarter from 0.6 per cent in 2017 to 0.8 per cent in 2018. While cost-to-income inched up from 85.84 per cent to 87.28 per cent, return on equity improved from 6.54 per cent to 6.85 per cent. Capital adequacy remains considerably above regulatory threshold at 21.13 per cent while liquidity ratio increased by 50 per cent from 18.64 per cent to 27.94 per cent. Staff strength and number of branches also increased by 6.0 per cent and 16 per cent respectively.

    Managing Director, Jaiz Bank Plc, Mr. Hassan Usman, said the 2018 results further demonstrated that the bank has the capacity to grow sustainably in line with its strategic vision of becoming the leading non-interest bank in Sub-Saharan Africa by 2022.

    He assured that while maintaining steady focus on elements that contributed to improved performance in 2018, the bank shall work harder to optimise its potential in order to deliver better returns in 2019.

    He noted that the bank had in 2017 crafted a strategic plan to build on its pioneer status in Nigeria into becoming the leading non-interest bank in Sub-Saharan Africa over the next five years.

    According to him, the bank has since been working hard across its business towards the strategic milestones set out for the years while maintaining steady focusing on its business growth.

    “The commitment and dedication of our people make me confident that the attainment of this goal is assured. 2018 is the year we demonstrated we have the capacity to grow safely and sustainably. We used a number of measures to spark progress in this regard, some of which include our commitment to the development of micro, small and medium enterprises, focus on unserved markets and the financially excluded, institutional alliances, nimble workforce as well as effective performance tracking amongst others,” Usman said.

    He added that Jaiz Bank, as the leader in alternative financing, is committed to ensuring that its engagement with the financially excluded remains boldly innovative as well as transformative.

    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 license 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 license 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 Nigerian Stock Exchange (NSE) with the admission of the entire issued share capital of the bank to the main board of the Exchange.

    Under its five-year growth plan, Jaiz Bank projects to grow its income and profitability consecutively. 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.

     

     

  • Jaiz Bank grosses N8.74b as net profit rises by 55%

    Jaiz Bank Plc grew its top-line to N8.74 billion in 2018 as the Nigeria’s first non-interest bank sustained steady growths in operations and profitability. On the back of significant growths in deposits and financing and investment, net profit rose by 55 per cent to N834.37 million.

    Key extracts of the audited report and accounts of the bank for the year ended December 31, 2018 showed that gross earnings rose by 11 per cent from N7.86 billion in 2017 to N8.74 billion in 2018. Profit before tax increased from N894.01 million to N897.70 million. After taxes, net profit rose from N537.12 million to N834.37 million.

    The balance sheet showed stronger underlying strength during the period. Total assets rose by 24 per cent from N87.31 billion to N108.46 billion. Deposits also grew by 25 per cent from N68.12 billion in 2017 to N85.03 billion in 2018. The non-interest bank expanded its financing and investment activities by 37 per cent to N69.36 billion in 2018 as against N50.79 billion in 2017. Jaiz Bank, as a non-interest bank, makes profit basically from profit-sharing on investments and gains on trading.

    Key underlying ratios showed improvements in returns and operational strength of the bank. Return on assets rose by a quarter from 0.6 per cent in 2017 to 0.8 per cent in 2018. While cost-to-income inched up from 85.84 per cent to 87.28 per cent, return on equity improved from 6.54 per cent to 6.85 per cent. Capital adequacy remains considerably above regulatory threshold at 21.13 per cent while liquidity ratio increased by 50 per cent from 18.64 per cent to 27.94 per cent. Staff strength and number of branches also increased by 6.0 per cent and 16 per cent respectively.

    Jaiz Bank Managing Director Mr. Hassan Usman said the results further demonstrated that the bank can grow sustainably in line with its strategic vision of becoming the leading non-interest bank in Sub-Saharan Africa by 2022.

    He noted that the bank had in 2017 crafted a strategic plan to build on its pioneer status in the country into becoming the leading non-interest bank in Sub-Saharan Africa over the next five years.

    According to him, the bank has since been working hard across its business towards the strategic milestones set out for the years while maintaining steady focusing on its business growth.

    “The commitment and dedication of our people make me confident that the attainment of this goal is assured. 2018 is the year we demonstrated we have the capacity to grow safely and sustainably. We used a number of measures to spark progress in this regard, some of which include our commitment to the development of micro, small and medium enterprises, focus on unserved markets and the financially excluded, institutional alliances, nimble workforce as well as effective performance tracking amongst others,” Usman said.

    He assured that while maintaining steady focus on elements that contributed to improved performance in 2018, the bank shall work harder to optimise its potential in order to deliver better returns in 2019.

    He added that Jaiz Bank, as the leader in alternative financing, is committed to ensuring that its engagement with the financially excluded remains boldly innovative as well as transformative.

    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 the country’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 license 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 the country 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 Nigerian Stock Exchange (NSE) with the admission of the entire issued share capital of the bank to the main board of the Exchange.

    Under its five-year growth plan, Jaiz Bank projects to grow its income and profitability consecutively. 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.

  • NADDC, BoI, Jaiz Bank partner to finance made-in-Nigeria vehicles

    The National Automotive and Design Development Council (NADDC) yesterday said the Council has partnered with the Bank of Industry (BoI),  Jaiz Bank and stakeholders to finance the manufacturing of made-in-Nigerian vehicles.

    The partnership should start to manifest in the next two months and allow Nigerians  to put down 10 per cent or less for the purchase of new made-in-Nigeria. Other payments will be made over a number of years as opposed to the 28 per cent that was operational. This will spur local capacity and support the production of vehicles in the country.

    Its Director-General, Aliyu Jelani told reporters during a media briefing that in other countries, people put down 15 per cent and drive off with the vehicle and pay after a number of years.  This, he said, is technically non existence in the country.

    He said: “Presently we are building three automotive test centres; we are about 85 per cent complete, we have one in Lagos to test emission, the second in Enugu to test components and the third in Zaria for materials. By the time this test centres are on line, any vehicle or components that is made, sold or brought into the country must be certified by NADDC before it can go on to the market. This is to ensure that Nigerians only have high standard of components.

    “Nigerians face a lot of problems when something goes wrong with their vehicles. Most mechanics in Nigeria today are not qualified enough to diagnose the vehicles so the vehicle is either fixed or made worse, even when they understand what the problem is the parts itself are substandard. They either bring in brand new substandard or they may be either used parts.”

    He said it was on this strength that the Council came into action and began to bring back car manufacturing. As a result of that Innosen sprung up, Hundai came into the country, Peugeot was revived.

     

    Innosen he said  is doing very well, the Nigerian Automobile Industry Bill NAIDC is working in towards  discouraging importation and supporting local production as a result we now have a number of manufacturer’s and  producers in Nigeria.

     

    “We are all aware of the huge challenge we have with electricity, water and connectivity in Nigeria. The NAIDB also have what we call structure development. We are currently in the process of building three industrial parks in Kaduna, Oshogbo and Nnewi, the one in Nnewi is most advanced, we already have a master plan done, we are working with Bank of Industry, Jaiz Bank and a number of stakeholders, we have discussed with a lot of manufacturers who will plug in and play in such a place like Nnewi.”

     

    Jelani said these are automotive industrial parks with the central location where all the necessary infrastructure will be provided, electricity, road structure, connectivity and water so that it will be easy for companies to come and set up shops.