Jaiz Bank declares N158m profit
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Jaiz Bank Plc on Wednesday announced its return to profitability since commencing operation in 2012, with a profit of N158m for the 2014 financial period.
Jaiz Bank is the first and only full-fledged non-interest bank in Nigeria set up to operate in line with the principles of Islam.
Speaking at its third Annual General Meeting, which was held in Abuja, the Chairman of the bank, Alhaji Umaru Abdulmutallab, said the institution was able to achieve this feat through investment in both human and technology resources.
He added that the bank had strategically expanded its branch network from 10 in 2013 to 15 during the 2014 financial period, and that the board was able to limit its expenditure to only 20 per cent.
According to him, during the 2014 financial period, the bank grew its total assets by 24 per cent from N33.9bn in 2013 to N42bn.
Total earnings, he noted, grew by 114 per cent from N11.5bn in 2013 to N24.5bn, while the total income increased by 220 per cent from N915m in 2013 to N2.94bn in 2014.
Abdulmutallab said the bank was able to make profit despite the fact that there was no platform yet for it to make income from its treasury management activities due to the absence of Sharia-complaint liquidity instruments in the market.
He, however, called on the Central Bank of Nigeria to support the operation of the non-interest banking segment of the financial services industry through the provision of Sharia-complaint financial instruments.
Abdulmutallab said, â€œDuring the year, the bank was able to drive itself to break even, a feat that is highly phenomenal when one considers the fact that there is no platform yet for the bank to make income from its treasury management activities due to the absence of Sharia-compliant liquidity instruments in the market.
â€œWe hope that with the emergence of other players and growing interest in Sukuk by sub-national institutions, adequate compliant instruments will be available in the market in no distant time.
â€œWe equally hope that the CBN regulation will be geared towards creating a level playing ground by providing adequate compliant instruments to support the operations of this specialised sub-sector of the banking industry.â€
The Managing Director/Chief Executive Officer, Jaiz Bank, Mr. Muhammad Islam, expressed optimism that its application for a national banking licence would soon be approved by the CBN.
He said the upgrade of its regional licence to a national one would enable it to operate in all the 36 states of the federation and the Federal Capital Territory.
According to him, when the application is approved any moment from now, it will position the bank to compete effectively in the banking sector.
Islam said with the return to profitability, the bank would be able to commence the payment of dividend from the 2017 financial period.
The managing director said the bank had concluded plans to open branches in 16 additional locations by the end of this year, adding that the branch network was expected to grow to about 100 by 2017.
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