Categories: Business

Nigeria’s pioneer Islamic Bank clocks 10yrs

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The pioneer Non-Interest Bank in Nigeria, Jaiz Bank Plc has clocked 10 years, having commenced operations on January 6, 2012 with three branches in Abuja, Kaduna and Kano.

According to the bank, despite paying the huge costs associated with pioneering, it was able to break even within the first three years of operation, which was unprecedented at the time.

From a modest balance sheet size of N12bn in 2012, the bank closed the 2020 financial year at N278bn (Total Assets & Contingents) and grew all other key performance indices exponentially over the years.

Through its unique value proposition, Jaiz Bank has, within a decade, made remarkable impact in empowering women, driving financial inclusion and supporting various strata of businesses in the real sector of the economy such as agriculture, real estate, construction, oil & gas, general commerce, etc.

Within this period, the bank was rated by the Islamic International Rating Agency (IIRA), assigning it an investment grade rating of BBB.

Most recently, the bank also got an upgrade from both Agusto and GCR to BBB and BBB-, respectively with stable outlook.

Besides, Fitch also did its first rating of this promising institution, and it came out at the same impressive level.

The Managing Director, Hassan Usman, while thanking Allah, then the regulators, customers, Board, Management, staff and other stakeholders for their tremendous support, expressed great delight on the giant strides being taken by the bank.

He said, “Today, our bank officially clocks ten years since it first opened its doors to customers on January 6, 2012. The journey was much like a roller coaster – you experience some degree of fear at the onset, but subsequently excitement takes over when the carriage takes off and you feel that euphoria of defying the odds of gravity.

“After the take-off, momentum is gradually gathered and stopping the coaster becomes not an option, the wisest thing to do is making every jerk and movement worthwhile and impactful. That is what we did; we lived every moment, learning from each mistake, supporting our customers through thick and thin while pressing on – despite the absence of essential non-interest banking enablers – to pioneer a nascent sub-sector that is now burgeoning with players and accolades.

“We are happy to pioneer an industry that was not there; creating confidence for other people to come in; and we believe that we’ve done that very well.

The year 2022 is special to us as it marks a decade of progress in our Islamic banking journey and I am extremely fulfilled for the opportunity of leading the team for a larger part of the journey. From a very humble beginning in 2012, the bank has successfully developed a remarkable brand that is iconic both locally and internationally.”

He recalled that in 2021, the bank had been adjudged by analysts as the fastest growing among the listed banks in Nigeria, recording 39.3 per cent growth in total assets, (based on December 2020 results) as well as the fourth most efficient based on Return on Equity of 17.4 per cent.

The international annual ranking by “The Asian Banker” (A Singapore-based leading provider of strategic intelligence on the financial services industry), ranks Jaiz Bank as 36th on the world’s strongest Islamic banks as at 2021.

“The rankings were made possible by remaining true to our vision by building the second largest non-interest bank in Sub-Saharan Africa in just 10 years.”

Usman assured that the bank will continue to leverage on its market acceptance and innovate in order to consistently deliver superior customer experience in the dynamic business environment, hence maintaining its clear leadership in the non-interest banking space.

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