Shareholders Approve Jaiz Bank’s Request To Raise N150bn For Expansion
Shareholders of Jaiz Bank Plc has approved the Board of Directors request to raise N150bn through issuance of Sukuk or Equity from the Nigerian capital market.
The approval was secured Tuesday at the Bank’s 10th Annual General Meeting held in Abuja on Tuesday.
The Board of Directors was also empowered to take all such actions as required by the Central Bank of Nigeria, the Securities and Exchange Commission, the Nigerian Exchange and other authorities to raise the amount.
The shareholders also approved the dividend payment of 4 kobo per share which was initially proposed by the Board of Directors for the 2021 financial year.
Chairman of the Board of Directors of Jaiz Bank, Umaru Mutallab, said within the last ten years, the business of the bank which is in line with the non-interest banking principle has shown incredible resilience.
He told the shareholders that gross earnings grew by 32 per cent from N19.61bn in 2020 to N25.84bn in 2021.
According to him, the bank’s profit before tax grew higher by recording a growth of 43 per cent from N3.07bn in 2020 to N4.37bn in 2021.
Mutallab explained that during the year under review, the bank increased its total assets by 20 per cent from N223.6n in 2020 to N279.3bn in 2021 while total deposits rose to N209.08bn in 2021 from N175.51bn in 2020.
He said, “During the year 2021, the market perception of our brand has equally continued to improve with the bank being awarded the most-improved Islamic Bank in the world by the United Kingdom-based GIFA for a second year in a row.”
On the future outlook of Jaiz Bank, the Chairman expressed optimism that the bank will continue to make progress in the coming years.
He said, “The future looks bright, the macroeconomic indices are projected to have an uptick as most of the economies have rebounded except some few.
“As for the bank, we will remain resolute in providing our customers better services in an efficient and delightful manner.
“Our digital roadmap will be judiciously executed in order to simplify our processes and engender employees’ productivity while optimizing shareholders return.”
Meanwhile, shareholders of the bank will receive a total of N1.38 billion dividend for the Year Ended 2021, representing 4 kobo per ordinary share of 50 kobo each. This was unanimously approved by the shareholders at the AGM.
This the third year the Bank is paying dividends to its shareholders since it began dividend payment in 2019. The increase in the dividend payment for the year under review was as a result of growth that the Bank witnessed, Chairman of the Bank had stated at the AGM.
He said the perception of Jaiz brand has continued to improve with the “Bank being awarded the most-improved Islamic Bank in the world by the United Kingdom based-GIFA for a second year in a row.”
Also speaking at the AGM, the Managing Director/CEO, Mr. Hassan Usman said despite the tough operating climate characterized by weak economic growth and the negative impact of covid-19 pandemic, the Bank has achieved a lot in terms of financial stability.
He said: “Its external credit rating for instance has materially improved over the past twelve months. Three rating agencies (Fitch Rating, GCR Rating, and Agusto Rating) all gave the Bank investment grade rating of BBB/BBB-”
The Bank’s audited financial results for the period ended 31 December 2021 showed a 43% growth in Profit Before Tax from N3.07billion in December 2020 to N4.37 billion in December 2021. This is on the backdrop of an increase of 31.76% in Gross Income from N19.61 billion realized in 2020 to N25.84 billion in 2021.
Similarly, the Bank’s Total Asset grew by 19.55% from N233.60 billion to N279.28 billion while Shareholders’ Funds for the period grew by 36.20%, from N17.85 billion to N24.31 billion.
Earnings per share for the period increased by 40.10% from 9.85 kobo in 2020 to 13.80 kobo in 2021.