Companies

Jaiz Bank is enjoying a fresh wave of confidence from investors

by BALA AUGIE

January 26, 2018 | 2:21 am
  |     |     |   Start Conversation

Amid a volatile and unpredictable environment, Jaiz Bank Nigeria Plc is enjoying a rising wave of confidence among investors as share price has been in an upward trajectory since the start of the year.
Nigeria’s leading non interest bank has broken after becoming the first Islamic bank to make a profit three years after it was established.
Jaiz Bank’s shares have gained 77.01 percent since the start of the year, outperforming the NSE ASI Index of 14.96 percent- one of the beat performers among companies quoted on the bourse.
The share appreciation can be attributed to the firm’s consistent earnings growth, focus and market penetration strategies.
For the first months through September 2017, Jaiz Bank’s net income surged by 627.60 percent to N779.69 million from N239.43 million the previous year.
Total revenues surged by 187.34 percent to N4.54 billion, underpinned by a 169.48 percent rise in total income from Murabaha Transactions to N1.81 billion.
The Islamic lender was able to translate the impressive top line (sales) to bottom line growth (profit) as net margin, a measure of efficiency, increased to 17.10 percent in September 2017 as against 6.78 percent as at September 2016.
Return on equity (ROE) improved to 5.03 percent as at September 2017, from 1.61 percent the previous year, which means the lender has been able to deploy shareholders resources in generating a higher profit.
Speaking on the impressive results, the Managing Director/CEO Hassan Usman attributed the success to the support from the Board, Management and staff of the bank in addition to our commitment to the business model which is hinged on a better life for all our stakeholders.
He said “the results attained so far already prove we are doing better than 2016. This year will define how we move forward; we are in the process of creating a five-year plan that will further define our identity in the Nigerian banking space. We have ambitious ideas about what we would like to be, and the Board and the shareholders are committed to ensuring we become a formidable player in the market”.
Jaiz Bank started with a share capital of about N5billion in 2012, but today its capital has hit N14.73 billion.

The non-interest lender had three branches in 2012. Today it has about 30 branches.
“Our strategy is to provide retail banking to a large segment of the society who is desirous of our products and services.” “We are focused on building on our culture of ethics and taking the necessary decisions to align our perspective with client expectations.” summed Usman.

 

BALA AUGIE

Tags:

by BALA AUGIE

January 26, 2018 | 2:21 am
  |     |     |   Start Conversation

Big Read |  

Analysis

What Nigeria must do before signing AfCFTA

Nigeria’s President Muhammadu Buhari last Wednesday gave a hint that he would sign the African Continental Free Trade Area (AfCFTA)...


MTN Banner ADS 2


WSE

Newsletter CompanyReport