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.
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.
Credit: thenationonlineng.net
