Shareholders Back Jaiz Bank’s Bid to Raise N150bn Via Sukuk

Shareholders of Jaiz Bank Plc yesterday approved the board’s request to mobilise the sum of N150 billion through the issuance of Sukuk instruments either in full or in series.

The capital injection will among other things, boost the bank’s current expansion drive, especially in the digital frontline.

The shareholders, also okayed the payment of N1.38 billion as dividend for the 2021 financial year, representing 4 kobo per ordinary share of 50 kobo each.

The resolutions were unanimously agreed upon by the shareholders who expressed satisfaction over the bank’s performance for the period under review. This is the third year the Islamic bank has paid dividends to its shareholders since it began dividend payments in 2019.

Speaking at the institution’s 10th Annual General Meeting (AGM) in Abuja, its Chairman, Alhaji Umaru Abdulmutallab, explained that the increase in the dividend payment followed its positive growth trajectory in recent years.

He said the perception of the Jaiz brand had continued to improve with the bank being “awarded the most-improved Islamic bank in the world by the United Kingdom-based-GIFA for the second year in a row.”

According to him, “The future looks bright and fulfilling. The macroeconomic indices are projected to have an uptick as most of the economies have rebounded except for a few.

“As for us (Jaiz Bank), we will remain resolute in providing our customers better services in an efficient and delightful manner. Our digital roadmap will be judiciously executed in order to simplify our processes and engender employee’s productivity while optimising shareholders’ return.”

However, the bank’s audited financial results for the period ended showed a 43 per cent growth in Profit Before Tax (PBT) from N3.07 billion in 2020 to N4.37 billion in 2021.

This came on the backdrop of an increase of 31.76 per cent in Gross Income from N19.61 billion realised in 2020 to N25.84 billion.

The bank’s Managing Director/Chief Executive, Mr. Hassan Usman said despite the tough operating climate characterised by weak economic growth and the negative impact of the COVID-19 pandemic, it achieved a lot in terms of financial stability.

Usman said the bank’s “external credit rating for instance has materially improved over the past 12 months. Three rating agencies (Fitch Rating, GCR Rating, and Agusto Rating) all gave the Bank investment grade rating of BBB/BBB-”.

He said the management will continue to deliver uncommon value to all stakeholders, adding that “I am confident to state that the future of the Jaiz brand remains promising for all of us”.

However, the bank’s total assets grew by 19.55 per cent from N233.60 billion to N279.28 billion while shareholders’ funds for the period grew by 36.20 per cent, from N17.85 billion to N24.31 billion.

Earnings per share for the period increased by 40.10 per cent from 9.85 kobo in 2020 to 13.80 kobo in 2021.

The bank has consistently delivered remarkable results, which clearly reaffirms its continuous growth trajectory as one of the most profitable banks in the country.

Courtesy By: https://www.thisdaylive.com/