Jaiz Bank bullish on non-interest banking

Managing Director, Jaiz Bank, Alhaji Hassan Usman has expressed satisfaction with the level of acceptance of non-interest banking in the country. Usman noted that the number of branches of the bank in on the increase across the country

In his words:

“In fact, in Lagos alone, we have four branches and we are planning to venture into the eastern region. We are targeting Enugu, Owerri, Onitsha, and Aba. We are duly licensed to be a national bank and we are listed on the Nigerian Stock Exchange as a tier one commercial bank.”

Non-Interest Banking offers almost all the services of conventional banks. The difference is that non-interest Islamic Banks do not give or receive interest, nor finance anything that is harmful to society like alcohol, tobacco, gambling etc.

The bank and Islamic Corporation for the Development of Private Sector (ICD), the development arm of Islamic Development Bank (IDB), recently signed a $20 million line of agreement to finance Small and Medium Sized Enterprises (SMEs) in Nigeria. The financing deal covers sectors such as industry, communications, technology, health, manufacturing, agriculture among others.

In its 2017 full year financial reports Profit before Tax increased to ₦894 million
in the year 2017 as against ₦343million reported in the corresponding period of 2016, this represents 161% growth.

The results also show a Gross Income from financing of ₦6.24 billion, up from ₦5.29billion posted in the corresponding period of 2016. Also in the year 2017, the Bank realized ₦1.76billion from Non-Financing Income, compared with ₦0.71billion in 2016. Income from Sukuk also soared from ₦189 million (in 2016)
to ₦371 million (in 2017).

The Bank was created out of the former Jaiz International Plc which was set up in 2003/2004 as a Special Purpose Vehicle (SPV) to establish Nigeria’s first full-fledged Non-Interest Bank.

It obtained a Regional Operating License to operate as a Non-Interest Bank from the Central Bank of Nigeria on the 11th of November 2011 and began full operations as the first Non-Interest Bank in Nigeria on the 6th of January, 2012 with 3 branches located in Abuja FCT, Kaduna, and Kano.

The Regional License allowed the Bank to operate geographically in a third of the country. Also, based on recommendations from Islamic Development Bank (IDB), which is also a shareholder of the bank, Jaiz Bank PLC had partnered with Islamic Bank of Bangladesh (IBBL) for Technical and Management Assistance.

Jaiz bank was intially listed on the NASD OTC exchange, but migrated to the Nigerian Stock Exchange (NSE) in February year. The stock closed at N0.86 in today’s trading session.

 

Source: Nairametrics

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