Jaiz Bank grows balance sheet to 300bn in 10yrs

Jaiz Bank PLC, Nigeria’s premier non-interest bank has grown its balance sheet from an initial N12 billion ten years ago at the start of operation, to N300 billion in 2021, Hassan Usman, Managing Director/ CEO of the bank has said.

Usman said that the bank witnessed rapid expansion in branch network from three to 45 branches across the country, and was able to break even just within three years of its operations and has since then maintained a growth trajectory.

He stated this at a media paley in Abuja to celebrate the bank’s ten years anniversary.

He recalled the initial scepticism and phobia of Islamic banking that greeted Jaiz bank start of operations, and explained how Nigerians have come to embrace the concept, which has accounted for the huge success recorded in just a decade.

“His words: “Jaiz as a pioneer has proved that the concept of non-interest banking is workable even in the Nigerian environment. We have more interests now in this sector by individuals and corporate organizations. Even the public sector has embraced the non-interest business model, in order to derive the benefits associated with the system.

“Jaiz Bank started with only three branches in 2012. Today, we have more than 45 branches spread across Nigeria. In the first year, the balance sheet was just N12 billion. By the end of 2021, our balance sheet had grown to N300 billion.

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According to him, the bank has so far recorded an average of 30 per cent growth Year-on-Year and a 40 percent profitability, also Year-on-year.

“At the beginning, we were more of a corporate banking in terms of our bank’s offering, but now we have diversified the products offering from corporate to Small Medium Enterprises (SMEs) and even in some cases we experimented with micro because of our mission of making life better for Nigerians.

He said over the years, the bank experimented with the people at the bottom of the pyramid, especially women, by providing equity financing for them to develop their small businesses. “This is so that the household income would improve and the welfare of the family be appreciated, with the children of those families benefiting as we see better enrolment of those children in school.”

On the specific sectors which the bank’s lending has impacted, Hassan listed housing and agriculture as being the most preferred till date.

“I think one of the areas we know we have impacted significantly is housing delivery for Nigerians. Between us and our partners over the last ten years, we have delivered more than 3000 houses.

“In the last four to five years, we have financed agriculture to the tune of N 75 billion in equity. And if there is one leading bank in terms of financing in the right value chain, including the the new rice mills that have been created over the last four or five years, we are one of them in that area.

“Our SME portfolio has also grown significantly over the last 10 years. We have done more than 60 billion to SMEs and we created facilities for more than 20,000 individuals,” Jaiz bank CEO stated.

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