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Tag: Jaiz

  • Jaiz Bank targets N5b profit in first quarter

    Jaiz Bank targets N5b profit in first quarter

    Nigeria’s premier and largest non-interest bank, Jaiz Bank Plc, 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 at the weekend 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 Nigerian Exchange (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 recently appointed Mr. Haruna Musa, as its managing director. Musa possesses nearly three decades of experience in banking operations. He spent 22 years of his 28-year career in Guaranty Trust Bank (GTBank), retiring in October 2023 after serving two terms of eight years as an executive director. He joined Guaranty Trust Holding Company (GTCO) in March 2001 and retired last October.

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    He had assumed the role of Executive Director & Head, Northeast & Public Sector, Abuja Divisions at GTB in October 2015. Musa’s experience cut across retail banking, small and medium enterprises (SMEs) banking, corporate banking, commercial banking, business banking and public sector.

    In its latest interim report and accounts, Jaiz Bank had recorded double-digit growths across key performance indicators in third quarter of 2023 with pre-tax profit rising by about 74 per cent to N6.68 billion.

    Key extracts of the interim report and accounts of the 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.

    The latest forecast has 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, the only publicly quoted non-interest 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.

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

    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.

  • How Fed Govt can aid charity groups to combat poverty, by Jaiz chief

    How Fed Govt can aid charity groups to combat poverty, by Jaiz chief

    The Chairman of Jaiz Bank Plc, Alhaji Mustapha Bintube, has urged the federal government and governments at other levels to continue working on creation of an enabling environment for ease of doing business.

    This, he said, would aid charity organisations that are assisting people with funds to establish businesses.

    Alhaji Bintube spoke on Saturday during the grand finale of the annual Zakah distribution of Jaiz Charity and Development Foundation for the year 2023 in Abuja.

    Materials including industrial sewing machines, grinding and washing machines, mixer, generator, vulcanised machine and cash were donated to thousands of beneficiaries.

    According to the Jaiz Bank chief, when an enabled environment is in place for businesses to thrive, charity organisations would be encouraged to empower more people to establish businesses through their corporate social responsibility (CSR).

    Nigeria, he said, has no business being the poverty capital of the world.

    “With all the God-given resources, and most important, the people with a lot of intelligence, hard working and entrepreneurship skills, poverty should not be prevalent in our country.

    “So Jaiz is committed to be part of the solution to Nigeria’s problem especially when it comes to poverty alleviation, empowering our people and also by laying the ethical foundation for the young ones to grow. They can also in turn, empower other people,” he said.

    Chief Executive Officer of Jaiz Charity and Development Foundation, Dr Abdullahi Shuaib, said the foundation has disbursed over N431 million to 9,882 beneficiaries across 29 states of the federation and the Federal Capital Territory (FCT) since it began zakah collection in 2016.

    Dr Shuaib stated that over N66.5 million was disbursed to 1,156 people this year.

    He said the foundation felt the pains and agonies of the poor, the needy and vulnerable people in the society due to the deplorable economic situation of the country.

    He said: “We are more disturbed by available statistics and data which indicate that the toughest days ahead may better be imagined than experienced especially for the poor ones. For instance, according to (World Poverty Clock, 2023), our country ranks 37 out of 172 countries while a total of 133 million population of Nigerians is regarded as multi-dimensionally poor by the National Bureau of Statistics (NBS).

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    “The unemployment rate of 37.7 per cent recorded in 2022 is projected to rise to 41 per cent in 2023 (KPMG). Most scaring is the continuous acceleration of the inflation rate from 22.79 per cent in June to 24.08 per cent in July, 2023. This is the highest inflation rate recorded in the country since 2005 according to the NBS with the highest upward contribution from cost of food and non-alcoholic beverages, oil & fat, breads, cereals, potatoes, yams, fish, meats, vegetables, housing, water, electricity, gas & fuel, and transportation among others.

    “It is no longer news that both the middle and lower classes are groaning under an excruciating pains and difficulties to make ends meet. No thanks to the removal of subsidy coupled with the challenges of unstable monetary policy, consistent fluctuation of foreign exchange, accelerating inflation rate and a rise in the multidimensional poverty rate in the country.

    “As a faith-based organisation, we are not discouraged by all the aforementioned challenges. We believe that challenges are meant to be overcome. We also know that the federal and state governments are working round the clock to salvage the situation from bad to good. We are more resolute and committed to the cause of Allah and humanity at this moment of severe hardship for the poor and vulnerable. It is also important to note that even the rich also cry. It is sad that we are experiencing a declining trend among some of our Zakah payers. They too are complaining of the harsh economic situation. We pray Allah continue to enrich their purses and bless their enterprises for shared prosperity.”

    Chairman of Jaiz Takaful Insurance Ltd, Hajiya Zainab AbdurRahman, who chaired the event, said the gesture was geared towards improving the beneficiaries’ standard of living.

    She urged the beneficiaries to put the items given to them into proper use.

    Hajiya AbdurRahman said: “If they’re committed and dedicated enough, it will make them successful and they also can help other people.

    “They need not to start looking for capital to buy the equipment for them to stand on their own. It has already been provided by Jaiz Charity and Development Foundation. This put them on many steps ahead of where ordinarily they would have been. That helps in making them immediate employer of labour. And when they make profits, they can also buy more machines, expand their businesses and help others make a living.”