TAJBank Limited, a technology-driven non-interest banking services provider in Nigeria, saw its profit before tax surge to N5.081 billion in the 2022 financial year from N1.6 billion in the previous year.
The lender has set a new record in the nation’s banking system with the payment of dividend to its shareholders in just three years of its operations.
TAJBank made history early this year as the first corporate entity in Nigeria’s history to list Sukuk Bond on the Nigerian Exchange Limited after the successful issuance.
Addressing shareholders at its annual general meeting, Tanko Gwamna, its board chairman, recounted the global economic whirlwinds in the past two years and the macroeconomic developments in the nation’s economic space, especially the surging inflation rate, with the attendant negative impacts on businesses.
Gwamna said that despite the inclement operating environment, the board and management of the bank were able, through innovation and proactive strategies, to sustain TAJBank on the path of sustainable growth and financial stability for the benefit of the shareholders and Nigeria’s economy.
Speaking about dividend, he said: “On behalf of the board, I am pleased to inform our shareholders that we have recommended a scrip dividend payment of 1 share for every 10 shares, subject to shareholders’ approval.
“We remain committed to promoting business expansion and success while making sure that a sizable amount of our profits is set aside for you.”
Hamid Joda, the bank’s managing director/CEO, described the full year 2022 as a significant milestone in the journey of the non-interest lender despite the headwinds that characterised the operating environment.
He said the management was able to deliver on key strategic goals through relentless execution, backed by a positive culture and delivery on high-impact projects.
On the bank’s financial performance in the full year 2022, Joda said that TAJBank recorded remarkable growth across key indices during the year as its balance sheet grew by over 93 percent to N212 billion from N110 billion in 2021.
He told the shareholders that the bank’s earnings per share grew by 138 percent to N31.27 kobo in 2022 compared to N13.11 kobo in the previous year.
While speaking about plans to further grow the bank in the years ahead, Joda said: “In our relentless effort to promote non-interest products and modes of banking nationwide, the board and management of TAJBank have set key objectives for the year 2023 and beyond.
“These initiatives include, inter alia, to promote financial inclusion by leveraging various channels and touchpoints, especially our electronic platforms with the aim of reaching out to the unbanked populace; and to be recognised as the market leader in the non-interest banking industry in Nigeria.
“We also plan to open 110 branches across state capitals/major commercial centres before 2024 and to offer non-interest banking products and services to underserved markets; to grow our agency network to 100,000 active agents by 2025 thereby reducing the financial exclusion rate; to grow our customer base to at least four million by 2027; and to achieve a minimum customer satisfaction score of 85 percent.”
Tata Omar, an independent non-executive director, said: “TAJBank is just barely four years of age and that it was able to make profit in its first year of operation is great and cheery news for all its stakeholders.
TAJBank deserves the congratulations it is getting as an institution because it has achieved a lot and this needs to be commended.
“The bank has continued to make great strides and now it is even expanding in terms of branches. TAJBank continues to make a statement that non-interest banking is here to stay and the way to go.”
