Jaiz Bank Plc is a commercial bank license by the Cnetral Bank of Nigeria (CBN) to operate across the country. It business is like others in financial intermediation but with different modus operandi in how it mobililise deposits and creates risk assets. Non-interest(Islamic) bank with profit from a demand-driven nich market that is fast growing.
The management of Jaiz Bank plc has reported a gross income grew to N5.478 billion in the financial year ended December 31, 2016. According to the result on the Nigerian Stock Exchange, the gross income appreciated by 12 per cent from N4.89 billion in the corresponding financial year ended 2015.
With buoyant gross volumes to N5.48billion from N4.89billion. An improved net profit margin (NPM) as a Mudarib to N4.3bilion from N3.9billion have characterized our performance during the year. Although it did not translate into higher PBT due to increase in operating expenses (OPEX), but the growth in the top-line affirms that demand for our products and services is increasing and at a profitable price as indicated by the positive NPM.
The increase in OPEX by N704 million to N2,089 million from N1,385million, reflecting the growth of our business, specifically in the area of branch development as part of the requirements for national licensing by the Central Bank and enhancement of the redundancies in our IT systems to enhance the reliability of our services. This has resulted in our underlying cost-income ratio deteriorating slightly by 11% over 2015 figure of 82%.
However, profit after tax went down from N910 million in 2015 to N311 million in 2016 and a total Income of N4.91billion was generated as against N4.30billion figure in 2015
Speaking the chairman of the bank, Dr. Umaru Abdul Mutallab said, “The outgoing year has been both a very challenging but yet exciting one for us in our corporate existence.
It was challenging not only because of the recessed node of the economy throughout the year, but also it was part of our formative period where we had to make the difficult decision of either keeping our revenues or reinvesting them in infrastructure and expansion of our business. Of course, had consideration not been given to growing the branch channels of the Bank and other allied infrastructures, profitability could have been much higher than prior year.”
The Chairman recalled that “five years ago when the Bank was licensed in 2012, the flagship business plan of the Bank has it that the Bank shall be listed on the NSE by its fifth year in operation. This promise was what the Board kept with the commencement of trading on your stock at the NSE on the 9th of this February 2017. From the records, the shares were introduced to the NSE at N1.25 per share with a Market Cap of N36.83billion (making Jaiz Bank the 7th most valuable Bank equity out of 15 listed Banks on the exchange). Within couple of weeks of listing, the equity appreciated by about 11.2% to N1.40 from N1.25 with a Market Cap of N41 billion. Your Bank no doubt has enormous brand equity.
“As an ethical bank we aim to optimize, rather than maximize, profit, retaining sufficient earnings to support future growth, sustain strong capital ratios and to allow us to invest in the business to provide the services that our customers demand. This will help us to deliver in long term, sustainable business that operates in the interests of our shareholders.