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Jaiz Bank posts N158million profit

By on June 12, 2015

Jaiz Bank Plc on Wednesday declared a profit of N158 million for the 2014 financial year. It is the first time the firm would announce significant investment gains since it began operations in 2012.

Speaking in Abuja at the bank’s third Annual General Meeting (AGM), the Chairman, Jaiz Bank, Alhaji Umaru Abdul Mutallab, said the bank was able to achieve a breakthrough as a result of careful investment in both human and technological resources.

He said the bank’s total assets by increased by 24 per cent to N42 billion in 2014, compared to N33.9 billion in the previous year.  Its total earnings also grew by 114 per cent to N24.5 billion from N11.5 billion in 2013 while total income increased by 220 per cent to N2.94 billion compared to N915 million the previous year.

The chairman noted that the bank was able to make profit despite the fact that there was no platform yet for it to make income from its treasury management activities due to the absence of Sharia-complaint liquidity instruments in the market.

He said: “During the year, the bank was able to drive itself to break even; a feat that is highly phenomenal when one considers the fact that there is no platform yet for the bank to make income from its treasury management activities due to the absence of Sharia-compliant liquidity instruments in the market.”

“We hope that with the emergence of other players and growing interest in Sukuk by sub-national institutions, adequate compliant instruments will be available in the market in no distant time. We equally hope that CBN regulation geared towards creating a level playing ground by providing adequate compliant instruments to support the operations of this specialized sub sector of the banking industry.”

He, however, called on the Central Bank of Nigeria (CBN) to support the operation of the non -interest banking segment of the banking sector through the provision of shariah complaint financial instruments.

Managing Director/Chief Executive Officer, Jaiz Bank, Muhammad Islam, said with the return to profitability, the bank would be able to commence the payment of dividend from the 2017 financial period.

He also expressed optimism that its application for a national banking licence would soon be approved by the CBN. He said the upgrade of its regional licence to a national licence, would enable it operate in all the 36 states of the federation including the Federal Capital Territory (FCT).
He said when the application, which according to him would be approved any moment from now is expected to position the bank to compete effectively in the banking sector.

 

[ThisDay]