Nigeria’s premier and largest non-interest bank, Jaiz Bank Plc recorded double-digit growths across all performance indices in the first quarter, setting the alternative banker on a strong wind for the 2023 business year.
Key extracts of the three-month report for the quarter ended March 31, 2023 released at the Nigerian Exchange (NGX) showed that gross income rose by 38.3 per cent while pre and post tax profit grew by 44.55 per cent. The bank’s balance sheet also expanded by 19.2 per cent within the period.
Gross income rose to N9.43 billion in first quarter 2023 as against N6.82 billion in first quarter 2022. Profit before and after tax increased to N1.59 billion in first quarter 2023 compared with N1.10 billion in comparable period of 2022. Earnings per share rose by 53.16 per cent from 4.61 kobo to 3.01 kobo. Total balance sheet rose from N379.82 billion by December 2022 to N452.82 billion by March 2023.
The first quarter results showed that Jaiz Bank outperformed its projected profit for the quarter. The three-month forecast for the period ending March 31, 2023 had estimated that pre and post-tax profits would be N1.40 billion and N1.26 billion. This implied a pre-tax profit margin of 14.3 per cent and net profit margin of 12.9 per cent, within the top-bracket of the industry margins. However, actual gross earnings fell short of the projected gross earnings of N9.78 billion for the period.
The board of Jaiz Bank has recently increased dividend payable to shareholders by 25 per cent after the alternative bank grew net profit by 68.5 per cent in 2022.
In a regulatory filing at the Nigerian Exchange (NGX), the Board of Jaiz Bank recommended payment of a dividend per share of 5 kobo for the 2022 business year, totaling N1.727 billion. The bank had paid a dividend per share of 4 kobo for the 2021 business year. The new dividend becomes payable on June 14, 2023 to shareholders on the register of the bank by the close of business in June 1, 2023.
Key extracts of the audited report and accounts for the period ended December 31, 2022 released at the NGX showed 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 showed 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.
Managing Director, Jaiz Bank Plc, Dr Sirajo Salisu said the 2022 result was a testimony that Islamic finance is increasingly gaining acceptance in Nigeria with Jaiz Bank leading the market with bouquet of value-adding products and services.
He noted that the bank has continued to make outstanding progress despite the headwinds, including the fluctuating currency rate and the effects of the Russia-Ukraine war on the entire world.
According to him, the bank has consistently delivered remarkable results in the last four years, which clearly is a reaffirmation of its continuous growth trajectory, being the leader in the country’s non-interest banking space.
Jaiz Bank has secured shareholders’ approvals to raise not less than N150 billion in new capital through Sukuk issuance and to implement a holding company structure that will see the bank engaging in other ancillary financial services.
Jaiz Bank’s planned N150 billion Sukuk will be the largest non-interest bond issuance in the capital market.
Shareholders have also mandated the board of directors to take all necessary steps and transactions that would enable the bank to achieve its short to long-term growth objectives as well as greater competitiveness. These steps and transactions may include acquisitions, new investments, restructuring; expansion, capital raising and other business arrangements that enhance the bank’s growth trajectory.
Credit: thenationonlineng.net
