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.
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.
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.
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.
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