Jaiz Bank Plc board of directors has assured that the bank would continue to improve on its performance as the pioneer non-interest bank expands its operations.
At the Annual General Meeting (AGM) at the weekend in Abuja, its Chairman, Dr. Umaru Abdul Mutallab said the bank was able to attain the feat last year because of its unique business model, particularly the strength of its organic retail growth.
Key extracts of the audited report and accounts of Jaiz Bank for the year ended December 31, 2017 showed that pre-tax profit-margin-which measures the underlining profitability of the company- doubled from 5.5 per cent in 2016 to 11 per cent in 2017. The pre-tax profit margin denotes the efficiency of the core operational and administrative cost management, and it is usually taken as a more definitive index of performance than top-line margins.
The report indicated a well-rounded performance as gross earnings rose by 40 per cent from ₦6.18 billion in 2016 to ₦8.10 billion last year. Gross profit grew by 34 per cent to ₦6.705 billion in 2017 as against ₦5.003 billion in 2016. Profit before tax jumped by 160.6 per cent from ₦343.02 million in 2016 to ₦894.01 million in 2017. However, the bank’s tax provision leapt by 1,024 per cent from ₦31.75 million in 2016 to ₦356.89 million in 2017. This moderated the net profit growth to 14.7 per cent from ₦311.27 million in 2016 to ₦356.89 million in 2017.
The 2017 report is the first audited report to be submitted by Jaiz Bank as a publicly quoted company. It had recorded another milestone on February 9, last year as the first non-interest financial institution to be listed on the Nigerian Stock Exchange (NSE) with the admission of the entire issued share capital of the bank to the main board of the Exchange.
The bank’s Managing Director, Mr. Hassan Usman, said it would this year again demonstrate that it has the capacity to grow safely and sustainably.
“We are using a number of measures to spark progress in that regard, some of which include the automation of our retail financing business, focus on underserved markets and the financially excluded, institutional alliances, nimble workforce and effective performance tracking amongst others,” Usman said.
He noted that the bank has gradually been surpassing its challenges and waxing stronger.
“Looking at what we have achieved over the short existence as a bank, I have a strong faith that Islamic banking is going to command a lot of respect and a force to reckon with in this country in the nearest future,” Usman added.