By Mustapha Usman
Ja’iz Bank Plc, the Nigeria’s first-ever non-interest bank, has been listed on the the Nigeria Stock Exchange, NSE, on Thursday.
The listing, which is the second in 2017, added about N37 billion to the market capitalisation of the NSE.
Following the listing, the NSE admitted 29.464 billion ordinary shares of Jaiz Bank Plc on its daily official list at N1.25 per share by introduction.
Shareholders of the bank had unanimously endorsed the listing of the shares at its extra-ordinary general meeting in November, 2016.
Speaking at the listing ceremony, the Chief Executive Officer of Jaiz Bank, Hassan Usman, noted that the listing would enhance liquidity for the bank’s shares, promote the value of the company and increase its transparency.
Mr Usman also reiterated that the listing would signal to stakeholders that non-interest banking provides alternative means of contributing to the nation’s socio-economic development.
“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,” he said.
Commenting on the future projections of the bank, the Jaiz MD said going by the bank’s growth trajectory which averaged 30 percent per annum, the bank has bright prospects.
He explained that the projection for the next five years indicates a gross revenue of N16 billion by 2021 and profit before tax of N7.9 billion.
In 2012, after it was granted a regional operating license from the Central Bank of Nigeria, Jaiz Bank commenced operations with three branches in Abuja, Kano and Kaduna. The branches, however, increased to 27 as at the end of 2016.
Speaking on dividend policy of the bank, Mr Usman said it has a policy that tries to strike 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 supporting the bank’s vision.
Commenting further, Mr Usman disclosed that the bank’s corporate plan outlines its way forward with the strategies, priorities and activities it will focus on to achieve its 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 the changing how banks should operate to better improve the lots of the community, while delivering on their commitments to the investors/shareholders,” he said.
“We are focused on building on our culture of ethics and taking the necessary decisions to align our perspective with client expectations.”