Jaiz Bank on Brink of N20bn Recapitalization Goal
…Reports Robust Financial Growth
By Patience Ikpeme
Jaiz Bank has announced it is on the verge of meeting the Central Bank of Nigeria’s (CBN) recapitalization requirement of N20 billion, a significant milestone in the ongoing recapitalization exercise.
This disclosure was made by Haruna Musa, the Managing Director of Jaiz Bank, during the bank’s Annual General Meeting (AGM) held in Abuja on Tuesday.
While speaking with journalists, Musa highlighted the proactive measures taken by the bank’s board to ensure compliance with the CBN’s new capital structure mandate. “Prior to the announcement by the CBN about the new capital structure, our board has been very proactive, by arranging a private placement. Our top investors have invested the sum of N10.4 billion. Considering our current verified capital by CBN, which stands at about N18.7 billion, we have only N1.3 billion left to secure, and we already have N10.4 billion ready to be brought in,” Musa stated.
Jaiz Bank is now awaiting the CBN’s final clearance to proceed with a public placement, positioning the bank to be the first in Nigeria to meet the new capital base set by the central bank. “As things stand now, Jaiz Bank is waiting for the CBN’s final clearance to undertake a public placement after which we will be the first bank in Nigeria to close the new CBN capital base,” Musa added.
Jaiz Bank’s financial performance in 2023 demonstrated substantial growth across various metrics. The bank’s gross earnings surged to N47.2 billion, a 42 percent increase from the N33.2 billion recorded in 2022. Profit Before Tax (PBT) also saw a significant rise, reaching N11.1 billion in 2023, up 67 percent from the previous year’s N6.6 billion. Deposits experienced a remarkable increase of 123 percent, growing from N209 billion in 2022 to N400.66 billion in 2023. Additionally, the bank’s total assets grew by 108 percent, from N279 billion in 2022 to N580 billion in 2023.
Reflecting on the bank’s impressive performance, Chairman Mohammed Mustapha Bintube noted that the half-year 2024 results have already surpassed the full-year profit for 2023. “The half-year 2024 results were quite impressive, exceeding the Bank’s full-year profit for 2023,” Bintube remarked.
During the AGM, Bintube reiterated the bank’s commitment to delivering consistent dividends to shareholders and enhancing customer experiences through digital channels. “We have consistently paid dividends to our shareholders over the years and will continue to improve the amount of dividends we pay in the coming years,” Bintube stated. He emphasized the bank’s focus on leveraging digital and electronic channels for banking transactions, aiming to improve customer service and convenience.
Bintube also expressed gratitude to the bank’s loyal customers for their continued support, stating, “We thank our loyal and supportive customers for their continued patronage and look forward to a deepened mutually beneficial relationship.”
The AGM also saw the retirement of several directors who had reached the maximum tenure of 12 years on the board. Bintube commended the outgoing directors and members of the Advisory Committee of Experts (ACE) for their contributions to the bank’s success. “The legacies of our outgoing directors and retired members of ACE will linger for generations to come,” he affirmed.
Bintube assured stakeholders of Jaiz Bank’s commitment to becoming the most successful ethical bank in Africa. “We are the pioneers of non-interest banking in Nigeria, and we aim to extend our reach beyond Nigeria and West Africa, aspiring to be the leading ethical bank on the continent. We are investing in our people, technology, and responsible banking practices, particularly in financing the agricultural sector to combat food price inflation,” he stated.
The bank is also focused on nurturing a new generation of leaders, with many founding members being succeeded by their highly trained and educated offspring. “These new leaders bring a lot of energy, fresh perspectives, and agility, and we are confident that within the next five years, our bank will be one of the top banks in Nigeria,” Bintube added.
Looking ahead, Jaiz Bank plans to enhance its support for SMEs, women, and youth, with significant investments planned for these sectors. Bintube also revealed that the bank aims to increase the representation of women as independent and non-executive directors by the next AGM.
Jaiz Bank’s commitment to ethical banking and sustainable growth positions it as a formidable player in the Nigerian banking sector, poised to achieve new heights in the coming years.
