Jaiz targets N5.56 billion profits by 2021
Says listing will promote liquidity for its shares
Jaiz Bank Plc, a non-interest financial institution is targeting a profit After Tax (PAT) of N5.56 billion by the end of the 2021 financial year from the current N1.34 billion position.
The bank disclosed this while addressing stockbrokers at the company’s, Facts Behind the Figures, shortly after it listed by the introduction 29.46 billion shares of 50 kobo each at N1.25 per share worth N36.83 billion on the floor of the Nigerian Stock Exchange (NSE).
The listing, which added about N37 billion to the market capitalisation of the Exchange, according to the bank, would promote liquidity for the bank’s shares; enhance value of the company and increased transparency.
The Managing Director of JAIZ Bank, Hassan Usman, explained that the bank is also projecting to grow its total income from N6.63 billion in 2017 to N16.19 billion in 2021.
“It is also in fulfilment of an earlier promise made at inception of the bank to the shareholders and the public. 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 the bank has a dividend policy that strikes a balance between retaining sufficient cash in the business to finance its organic growth strategy and rewarding its shareholders, who have come a long way in supporting the bank’s vision since its initial public offering (IPO) in 2003.
According to him, the bank’s corporate plan outlines the way forward with the strategies, priorities and activities it will focus on to achieve its financial goals.
“Based on our projection, we anticipate to have a pay-out ratio of not less than 50 per cent over our current plan period,” he said.
Speaking on core strategic pillars for the actualisation of the financial projection, Usman said: “Our corporate plan outlines our way forward, with the strategies, priorities and activities we will focus on to achieve our financial goals.
“We have set out on a path of reinvention of the banking landscape in the country. This journey over the next few years will focus on changing how banks should operate to better improve the lots of the community, while delivering on their commitments to the investors. We are focused on building on our culture of ethics and taking the necessary business decisions to align our perspective with client expectations,” he added.
The Chairman of the Company, Dr. Umar Abdul Mutallab, said the bank has gone through long struggle, which according to him was over.
He noted that despite being an Islamic bank, the financial institution is meant for all irrespective of religion, class or culture and urged Nigerians to embrace the non-interest bank as they stand to gain a lot from the bank.