• Sunday, May 19, 2024
businessday logo


Jaiz Bank: Unveiling 5-year strategic path for sustainable growth

JAIZ declares 73% pre-tax profit growth in nine months

Jaiz Bank, the pioneer Non-Interest Bank in Nigeria has set some of the most ambitious reform objectives in the country’s banking industry. The Bank is setting its corporate vision to become a leading ethical Bank in Africa, targeting among other strategic plans a plethora of propitious goals by the year 2027. This is in line with the Bank’s renewed strategic route, as it continues to respond to the dynamics of the business environment whilst offering its teeming customers a unique and delightful experience.

The Bank began full-fledged implementation of its new-fangled Strategic Plan, communicating via its website the revised Core Values – Excellence, Teamwork, Honesty, Integrity, Customer-Centric, Accountability, Loyalty (ETHICAL) – an acronym one could say without mincing words.

Delivering on this ambitious plan towards the 2027 deadline, Jaiz Bank is making deliberate and conscientious efforts to attract huge investments, part of which are anticipated from the foreign partners that are directly involved and desire to invest in banks founded on the basis of Islamic Banking principles. The gradual implementation of the new Strategic Plan which commenced this year, with a theme “Transform, Accelerate and Grow”, has started to show some flashes of success in all ramifications.

Read also: Jaiz Bank grows half-year profit to N3.8bn

At the end of March 2023, the Bank declared a double-digit growth across all performance indices, stating gross earnings of N9.88 billion. The Q1 results showed Jaiz Bank had recorded 44.55 per cent profit growth in its pre- and post-tax, showing that the gross income had risen by 38.3 per cent in the period. This implies that the gross income rose to N9.88 billion at the time, as against N7.2382 billion in the corresponding year of 2022.

A similar trajectory was maintained on the Bank’s profit before and after tax; there was an increase to N1.59 billion when compared with N1.10 billion achieved in Q1 of 2022. The Bank’s pre and post-tax profits forecast for the period ending March 31, 2023, was estimated at N1.40 billion and N1.26 billion, implying a pre-tax profit margin of 14.3 per cent and net profit margin of 12.9 per cent, within the top-bracket of the industry margins.

The balance sheet size of the Bank recorded similar growth within the period, from N379.82bn as at December 2022, to N452.82bn as at March 2023.

Read also: Jaiz Bank declares N6.6bn profits in one year

In the Bank’s deliberate measures to pursue greater efficiency, aligning its business priorities had resulted in significant growth. The Bank announced its unaudited results for the six months ended June 30, 2023, with a Profit After Tax (PAT) of N3.9 billion, indicating a declaration of 51 per cent increase in its PAT when compared with N2.4bn recorded in the corresponding period ended June 2022. This translates to a net profit margin of 27.3 percent within the top bracket of the industry margins.

The half-year results show gross income rose by 41.9 per cent to N20.3bn against N14.3bn recorded for the corresponding period ended June 2022. Also, Jaiz Bank’s balance sheet remains well-structured and robust, closing at N452.8 billion in H1 2023 compared to N379.8bn in H12022 representing 19.2% increase.

Read also: Jaiz Bank grows profit to N6.9 bn, highest in five years

Moreover, the earnings per share rose by 54.9 per cent from 7.34 kobo to 11.3 kobo when compared with the corresponding period ended June 2023. The results show an increase in key revenue lines and a strong performance in other financial metrics which reinforces the Bank’s growth prospects as the leading Non Interest Bank.

It would be recalled that the Bank disclosed during its 11th Annual General Meeting (AGM) in Kano, that its net income margin stood at 8.29 per cent as of December 31, 2022, while the capital adequacy ratio was 19.5 per cent, indicating a managed capital, well above the minimum regulatory requirements.

These myriad of accomplishments were occasioned by the Bank’s strategic investment in digital and fintech that had enabled operational efficiency across the board. More and new products are being rolled out to support Medium and Small Entrepreneurs.

Read also: Jaiz Bank rakes in N925 million profit in Q3

As part of the implementation drive of the new Strategic Plan, 13 new branch offices are being strategically rolled out in 2023, with a view to growing the Bank’s customer base from its current status to four million in the next five years.

The Bank has continued to offer its teeming customers better services based on ethical, transparent, and mutually beneficial banking facilities that hinge on a re-aligned vision and strategic thrust, focused on wealth creation in line with Islamic finance principles.

Ishaq is head, Corporate Communications, Jaiz Bank Plc.