Jaiz Bank Plc, Nigeria’s first non-interest commercial bank, recorded another milestone yesterday as the first non-interest financial institution to be listed on the Nigerian Stock Exchange (NSE) with the admission of the entire issued share capital of the bank to the main board of the Exchange.
The listing of the Jaiz Bank’s 29.46 billion ordinary shares of 50 kobo each at N1.25 per share lifted the market capitalisation of quoted companies by N36.83 billion. The listing was done by way of introduction, implying that Jaiz Bank’s shares would now be available initially through the secondary market. A total of 356,000 ordinary shares valued at N445, 000 were traded in six deals immediately after listing.
Speaking at the post-listing presentation on the company, chairman, Jaiz Bank Plc, Dr. Umar Abdul Mutallab, said the listing of the bank on the Exchange would open up opportunities to all Nigerians to be part of the ownership while providing liquidity to existing shareholders.
He explained that while Jaiz Bank is based on the principles of Islamic finance, the bank is an equal-opportunity institution that provides services to all customers and employment to all categories of people irrespective of their beliefs, regions and ethnicity.
He pointed out that the shareholders of the bank also cut across all segments of the country and beyond noting that the “Jaiz Bank is for all Nigerians” but the only difference is that the bank only finances ethical projects.
Managing director, Jaiz Bank Plc, Mr Hassan Usman, said Jaiz Bank has over its five years of operations built up a reputation as a solid bank noting that the bank broke even in its third years of operations and has been consistently profitable since then.
He said the bank would begin dividend payment to shareholders by the end of the year ended December 31, 2017 with the board already approving a dividend payment policy that will see the distribution of 50 per cent of net profit after tax to shareholders as dividend.
He pointed out that given the performance of the bank since it started operations in 2012 and its growth trajectory of 30 per cent average growth per annum, Jaiz Bank has bright prospects.
He projected that the bank’s gross earnings would rise consistently over the next five years to N16.2 billion in 2021 while profit before tax is also expected to follow the same trend to N7.94 billion by 2021.
“Our listing today, I am sure, will elicit public confidence that non-interest banking provides alternative model that will contribute to the socio-economic development of our country,” Usman said.
He added that the listing would also enhance value of the company and increase transparency, pointing out that the listing is also in fulfillment of an earlier promise made at inception of the bank to the shareholders and the general public.
Chief executive officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, commended Jaiz Bank for listing its shares, describing the listing as a bold and strategic step.
“Your listing on the NSE today will not only showcase Jaiz Bank as an African champion, but will enable the bank position itself towards the actualization of its strategic vision of serving the Sub-Saharan Markets. As you are aware, Islamic finance has grown rapidly over the past decade, and this banking segment has become systemically important across many regions,” Onyema said.
He pointed out that Jaiz Bank has gone through a rigorous process to meet the listing standards of the NSE and with the listing, the bank is showing its commitment to living a culture of strong corporate governance, excellent corporate citizenship and efficient services to its clients.
Jaiz Bank was created out of the former Jaiz International Plc which was set up in 2003 as a Special Purpose Vehicle (SPV) to establish Nigeria’s first full-fledged non-interest bank. The bank is owned by some 27,000 shareholders including the Islamic Development Bank (IDB). It had obtained a regional operating license to operate as a non-interest bank from the Central Bank of Nigeria (CBN) on November 11, 2011 and began full operations as the first non-interest bank in Nigeria on January 6, 2012 with three branches located in Federal Capital Territory, Abuja; Kaduna and Kano. It recently obtained a national banking license from the CBN.
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This post was last modified on December 26, 2019 2:40 PM