By Nse Anthony-UKO
ABUJA, (Sundiata Finance) – Jaiz Bank Plc, on Wednesday declared a profit after tax (PAT) of N203.679 million for the first quarter ended March 31, 2017. The result which was released on the Nigerian Stock Exchange (NSE), represents an increase of 175.83 per cent compared with N73.841 million recorded in the previous year.
The performance of the bank has demonstrated continued growth and operational efficiency as its gross income grew by 23.69 percent to N1.624 billion from N1.313 billion in 2016. Also, the bank’s total assets closed the first quarter at N78.698 billion compared to N58.674 billion the previous year, while the total liability went up by 52.3 per cent to N33.098 billion from N21.731 billion in 2016.
Also, the bank’s customer current deposit base further closed at N31.43 billion as against N20.654 billion, showing strong growth of 52.18 percent. Total income appreciated by 34.26 per cent to N1.45 billion from N1.08 billion, total expenses increased from N1.004 billion to N1.24 billion in the period under review.
The bank, being the first sharia-compliant commercial bank to list on the NSE in February, 2016, contributed N38.8 billion to the NSE market capitalisation. Recently, the managing director/CEO of the bank, Hassan Usman said, the bank based its five-year financial protection on seven pillars namely, retail market focus, organic growth, technology drive, skill gap reduction, strong corporate governance, brand projection and corporate advocacy.
Speaking on opportunities for 2017, Usman said a large percentage of the bank’s income is expected to be derived from Sukuk, which it projected to grow from N1.3 billion in 2017 to N3.2 billion in 2021. He explained that even though the bank operates a non-interest model, the bank is not a non-profit entity.
The banks model is designed to earn profits through sales, partnership, and leases. Non- interest (Islamic model) banks basically earn their income from a range of products and services that can be broadly classified into sales, partnerships, and leases.
Also the chairman of the bank, Alhaji Umaru Abdul Mutallab, said, “In the next five years, I see the bank in every nook and cranny of this country and other sub-Saharan African countries.
“In sub-Saharan West Africa, there’s still the big problem of paucity of banking services. The small and medium scale enterprises (SMEs) do not have adequate access to financial services. So this bank wants to champion the funding of small and medium scale enterprises.”
He added that shareholders of the bank will benefit from the bank investment, saying “The bank has a longer-term and more sustainable view of the benefits to future bottom-line.”