Jaiz Bank

It’s difficult to divert funds raised through #Sukuk bond – Usman

In this interview the Managing Director of Jaiz Bank, Hassan Usman, speaks about Islamic banking in Nigeria. One of the main challenges is the high operating cost of banks, but Jaiz Bank managed to grow to a national bank. Starting in 2012 with only three branches, the bank expanded to 30 branches all over the country. The Nigerian government recently issued a N100bn Sukuk bond and Jaiz Bank was part of the process from the inception. The proceeds of the Sukuk will be dedicated to building roads across the country. Sukuk can ensure that projects are managed properly and there is no diversion. In terms of profitability, Jaiz Bank made profit in 2015 and even in 2016 in spite of the difficulty witnessed in the economy. According to Usman, 2017 looks even better because the fundamentals have started to improve and so the bank's performance will follow the trend of improved fundamentals.

W’Africa to see more #Sukuk bonds – Usman

Acccording to Jaiz Bank CEO Hassan Usman, more West African countries and companies are likely to adopt Sukuk to finance infrastructural development and corporate growth plans. He said the envisaged passion for Sukuk issuance in the near future could make the non-interest capital market grow bigger and faster than its conventional counterpart. Nigeria recently issued its maiden sovereign Sukuk and successfully raised N105bn for its N100bn Sukuk, raising optimism on the depth of the market. Usman added that Islamic banking had a lot of potential due to the economic growth in many West African nations supported by improving fundamentals, growing domestic demand and stronger regional integration.

#Sukuk has great potential, says Jaiz Bank chief

Many West African countries and companies may fall back on Sukuk to finance infrastructural development and corporate growth plans. Managing Director of Jaiz Bank, Hassan Usman, said there could soon be a frenzy of the facility issuance in West Africa. Nigeria recently issued its maiden sovereign Sukuk. It successfully raised N105 billion for its N100 billion Sukuk. Usman added that with a population of about 329 million people, the emerging middle-class segment of the region is expected to boost demand for retail banking, takaful and Islamic funds. According to him, as the market for Islamic Finance develops in Nigeria, each segment of the market will provide potential career paths for young and middle-level professionals. He also noted it might take some time because the ecosystem is currently narrow with only one full-fledged bank, one window operation, one capital market operator and two Takaful operators.

Jaiz Bank: Balancing the Business and The Market

After the first tier commercial banks in Nigeria, Jaiz Bank was the most active stock on the exchange with volumes of 7,179,550 with a total value of N4,682,686.00. The increased activity is indicative of swinging sentiments in favour of the stock. But the stock has underperformed the All Share Index (ASI) in the last six months as it returned a negative 45% while the ASI returned 40%. Jaiz Bank managed to grow its Gross Income in the first half year ending June to N3.25 billion from N2.56 billion. Income from Finance Investment grew 19.82% to N2.95 billion from N2.46 billion while Sukuk leapt 198.3% to N293.35 million from N98.35 million. Abdulfatah Ahmed, the Kwara State governor highlighted there was a lot of scope for growth for the bank and Islamic banking in Nigeria. Hassan Usman, the bank’s managing director, said he was optimistic about the future of the bank and therefore urged everyone irrespective of their religious background to key into the model.

Jaiz Bank’s capital base hits N15bn

Jaiz Bank CEO Hassan Usman said that #Nigeria would become one of the countries to successfully offer Sovereign Sukuk in local currency. The Federal Government floated around N100bn and according to him, the offer was to last for five days. Hassan said these on the sidelines of Jaiz Bank’s Customers Forum in Ilorin, the Kwara State capital and also revealed that the institution’s capital base had reached N15bn. He said that Islamic finance worldwide was novel, being in existence for about 40 years compared to conventional banking, which had lasted for over 300 years.

Why we’ve not paid #dividends yet – #JAIZ #Bank CEO

Malam Hassan Usman, CEO of JAIZ Bank, perfected a partnership with Borno State government on the reconstruction of the state economy.
Usman said, that the fourth branch of JAIZ Bank had been opened in Nigerias Maiduguri about five years ago. And it has so far been getting the strong support of the state government since the branch was opened. So he was in Nigeria to explore the ways and means to reciprocate this kind gesture by the state government. His bank wants to help Governor Kashim Shettima in all his efforts to turn things around, especially now that peace and normalcy are gradually being restored in Maiduguri and the entire state.
JAIZ bank has launched a programme, which is being implemented since the beginning of the rainy season, to provide small-holder farmers with inputs. It is working with the coordinator as well as the private sector partner for the state to provide the seeds, fertilizer and other inputs to the partner. The idea of the state government is to start with 5,000 farmers, which it wants to empower at this initial phase of the programme.

Jaiz Bank grows capital base to N15bn within 5 years

#Nigeria's Jaiz Bank has grown its capital base in five years from the initial N5 billion to over N15 billion. The bank disclosed that it is growing at an annual rate of 30% which makes it one of the strong players in Nigeria’s banking industry. CEO Hassan Usman said the management of the Bank grew Deposit Base from Zero to over N60 billion, and Asset Base increased from zero% to N40 billion. He added that the bank plans to grow its network through opening of additional new branches across the country. Jaiz Bank currently has a staff of 500 and has concluded plans to open new branches in Jos, Nassarawa, and Minna, as well as additional branches in Lagos. Commenting on the plan by the Debt Management Office (DMO) to float Sukuk, Usman described the move as a welcome development which is expected to go a long way in boosting the operations of the bank.

‘Jaiz Bank’s NPL within tolerable limits’

The Managing Director of Jaiz Bank, Hassan Usman, has assured that the bank’s loan profile is very healthy. Jaiz Bank, he noted, was not heavily or significantly exposed to the oil sector, but the bank’s exposure is to real estate. While justifying the listing of the bank’s shares in the Nigerian Stock Exchange (NSE), he said Jaiz Bank’s activities remain transparent and open. Jaiz Bank has challenges like any growing institution. One of such challenges has to do with perception, as many people thought it was a charity organization. Other challenges include the enabling environment like infrastructure for non-interest banking like liquidity instruments. Another challenge is the limited number of qualified trained manpower to manage Islamic banking. Inspite of these challenges, Jaiz Bank has proved itself to be sustainable. It has grown into a national franchise with branches in South and South West and is also opening more branches in other parts of the country.

Jaiz Bank anxious to invest massively in #Sukuk for infrastruture

In #Nigeria Jaiz Bank has accumulated funds and is now ready to massively invest in Sukuk to finance in specific infrastructure projects in the country. Managing Director Hassan Usman said that the bank, being an Islamic bank, could not invest in interests yielding instruments and therefore had to wait until Sukuk was ready. He added that there are off-shore funds held by those who share similar non-interests philosophy of Jaiz Bank which could be brought into the country. Usman said that from a capital base of N5 billion, the bank has grown its capital base to about N50 billion. From a deposit of N3. 5 billion, it has grown to about N60 billion. From the initial three branches as a Regional Bank, Jaiz Bank has grown into a National Bank with 30 branches across the nation.

Jaiz Bank officially lists on #Nigerian Stock Exchange

Jaiz Bank is now a public quoted company listed on the Nigerian Stock Exchange. To commemorate the listing, Jaiz Bank’s Executive Management, led by Chairman Dr Umaru Abdul Mutallab, were honoured with a closing gong ceremony to officially close trading on the bourse for the day. Hassan Usman, Jaiz Bank's CEO noted that the listing of the bank’s shares was a fulfillment of an earlier promise made at inception of the Bank. He added that the listing would elicit public confidence that Non-Interest Banking provides alternative model that contributes to the socio-economic development of the country. Oscar Onyema, CEO of the Nigerian Stock Exchange, said this listing would promote liquidity for the bank, enhance its value and increase its transparency.

Jaiz Bank lists N29.4bn on stock market

Jaiz Bank added N36 billion to the total market capitalisation of the Nigerian Stock Exchange (NSE). The bank announced the official listing of its ordinary shares of N29.4 billion of 50kobo each at N1.25. The chairman of Jaiz Bank, Alhaji Umaru Abdul Mutallab, debunked insinuation that the bank was designed to only service the Islamic community, saying it was a bank for all Nigerians interested in doing ethical business. Jaiz Bank commenced operations in 2012 with a N3 billion deposit base. Since then it had a growth rate of 30%, with a current workforce of 600 staff across 30 branches across the country. On the future outlook of the bank, CEO Hassan Usman said Jaiz Bank’s prospects are bright, adding that the projection for the next five years indicated a gross revenue of N16 billion by 2021.

Gwandu Emir Hails Jaiz Bank’s Policies

The Emir of Gwandu Muhammad Iliyasu Bashar has commended Jaiz Bank for its banking policies and principles of making life better for people. The royal father made the commendation at his palace when the Managing Director of the bank, Malan Hassan Usman, the Regional Manager, Dr. Nurudeen Liman and Habibu Isa Muhammad, the branch Manager of Birnin Kebbi paid him a courtesy call. Malan Hassan Usman expressed his appreciation of the support rendered by the Emir towards the establishment of the bank. He said the bank started operation 5 years ago with provisional approval to open three branches in Abuja, Kaduna and Kano but now the Central Bank of Nigeria (CBN) has given full approval to the bank to open its branches nationwide. Currently the bank has 27 branches with 3 new ones coming next week.

#Nigeria’s first non-interest commercial bank to list on Nigerian Stock Exchange

The Nigerian Stock Exchange is set to list Nigeria’s first non-interest commercial bank, Jaiz Bank. The council of the Nigerian Stock Exchange (NSE) has approved the bank’s listing of its entire issued share capital on the exchange. Jaiz Bank will be listing a total of 29.46 billion ordinary shares of 50 kobo each at 1.25 naira, indicating a start-off market capitalisation of 36.83 billion naira. The bank has more than 20,000 shareholders, including shareholders such as the former Chairman of First Bank, Umaru Mutallab, industrialist Aminu Dantata, and development finance institution- Islamic Development Bank. The listing will be executed by way of an introduction, however, the company has indicated its interest in an Initial Public Offering.

#Islamic #Banking #Products and Challenges in #Nigeria

In January 2012, the Central Bank of Nigeria granted Jaiz Bank an approval in principle to operate as a regional interest-free bank in northern Nigeria. As a result of that, Jaiz bank became the first and the only full-fledged Islamic banking in Nigeria. Islamic banking is based on the principles of profit and loss sharing.

According to Mr. Muhammed Nurul Islam, a manager at Jaiz bank, the bank offers what is called a mudaraba (profit- and loss-sharing deposit). And Jaiz bank does not finance any customer without a purpose; he explain further that the primary means of Islamic finance are based on trading, and the bank trading activities are Sharia-compliant investments with the money deposited by customers. The customers and Jaiz bank share the risks and profits between them.

Jaiz Gets Shareholders’ Approval To List On #Nigerian Stock Exchange

Shareholders of Jaiz Bank unanimously voted for its shares to be listed and traded on the Nigerian Stock Exchange. The bank disclosed that this development will now open windows of opportunities for numerous individuals who desire to own shares in Jaiz Bank. Chairman of the Bank, Alhaji Umaru Abdul Mutallab, said the Bank’s authorized Share Capital has been sub-divided from 15, 000, 000, 000 Ordinary Shares of N1.00 each to N30, 000, 000, 000 Ordinary Shares of 50k each. Also speaking at the event, CEO Hassan Usman said once listed on the Nigerian Stock Exchange, existing shareholders can trade their shares while new investors can also invest by buying the shares.

NDIC tasks Jaiz Bank on corporate governance

#Nigeria Deposit Insurance Corporation (NDIC) has challenged the management of Jaiz Bank to strengthen its corporate governance to face the current economic challenges of the country. Umaru Ibrahim, managing director of NDIC, gave the advice to the newly appointed managing director of Jaiz Bank, Hassan Usman. Ibrahim advised the bank to step up its public enlightenment efforts in order to increase deposits' mobilisation. He also noted the bank's challenges in investing its excess liquidity due to the absence of Sharia compliant investment windows. He noted that while a lot of countries had tapped into the Sukuk investment window, Nigeria was still lagging behind in this respect.

Jaiz Bank: Non-interest banking services not for Muslims only

The Central Bank of Nigeria recently issued a national licence to Jaiz Bank. The bank commenced the first phase of its rollout with branches in Lagos, Port Harcourt, Ibadan and Ilorin and shortly will be present in all the states of the Federation. Jaiz Bank has recently concluded a Rights Issue, which raised its capital to N15 bn and the issue was oversubscribed by about 3%. According to Deputy Managing Director Mahe Abubakar the target is to raise the capital base of N25 bn before the end of the year. This will position the bank to compete efficiently in this highly competitive sub-sector of the economy. There are some people that misunderstand the concept of non-interest banking, but Jaiz Bank is open to all Nigerians, irrespective of their religions.

Jaiz Bank appoints Usman, MD

Hassan Usman has been appointed as the new Managing Director of Jaiz Bank. The decision of the Board of Directors was reached after a rigorous selection exercise. Hassan Usman takes over from Mahe Abubakar who has acted as MD since December 2015. Mr. Usman had previously acted as Managing Director in 2013. The Bank recently obtained a National Operating License from the Central Bank of Nigeria (CBN). This will enable it to spread across all the 36 states of the Federation.

Emir Sanusi Lauds Jaiz Bank’s N700m Profit

In #Nigeria the emir of Kano, Muhammad Sanusi II, has lauded Jaiz Bank for declaring a profit of over N700 million in the four years of its operation. The bank's managing director Mahe Abubakar Mahmoud disclosed that the Bank had a total balance sheet size of N65 billion by May 31, 2016. He explained that customers’ deposit stood at N50 billion, while the shareholders fund stood at N15 billion, making the bank worth N65 billion. Abubakar said the bank was expanding its branches across the nation, with four additional branches in Kano and the neighbouring states.

Jaiz Bank secures licence to deliver #Islamicbanking

The Central Bank of Nigeria (CBN) has granted Jaiz Bank national license to operate Islamic non-interest banking in all the states of the federation. Chairman of Jaiz Bank Alhaji Umaru Abdul Mutallab said the bank intends to roll out in all the 36 states and the Federal Capital Territory (FCT) in two or three months times. Alhaji Sa’ad Abubarkar III, the Sultan of all Muslims in Nigeria, congratulated and warned that Jaiz bank must conform with all rules and regulations of Islam.

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